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No Direct Effects After Brexit But Indonesia Has to Stay Cautious

Translator

Editor

25 June 2016 16:44 WIB

Electoral workers carry signs as they prepare a polling station for the Referendum on the European Union in north London, Britain, June 23, 2016. Polls opened in Britain Thursday for a referendum on whether the country should quit the European Union bloc of which it has been a member for 43 years. REUTERS/Neil Hall

TEMPO.CO, Jakarta - Economist at Samuel Asset Management Lana Soelistianingsih said the impact of the result of the British referendum on the European Union (Brexit) will not directly affect Indonesia.

However, Indonesia still needs be cautious, she said.

Lana predicts Brexit will create economic conditions in the European Union volatile two years ahead.

One of the impacts is in the investment sector, she added.

"Banks will tend to refrain from providing credit," Lana said on Saturday (25/6).

She added that under these conditions, Indonesia’s projects that require foreign funds may also be restrained.

"Foreign direct investment is also likely to decline so we need to strengthen domestic potentials," she said.

For the record, Britain has decided to withdraw from the European Union through a referendum.

Residents choose between Brexit (Britain Exit) and Bremain (Britain Remain).

Voting was held on Friday, June 24, 2016 and the result was announced the same day the victory was in favor of Brexit’s camp.

VINDRY FLORENTIN


Economy


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