TEMPO.CO, Jakarta - Central Bank Bank Indonesia (BI) said Indonesia's economy has a good resistance believed to be able to protect the Indonesia’s economy against the impact of the results of the referendum in the UK, that is the decision of the UK to leave the European Union, known as the British Exit (Brexit).
"Macroeconomic stability is maintained and this is reflected n low inflation, current account deficit under control, and the exchange rate that is relatively stable," said Executive Director of the Department of Communications of Bank Indonesia Tirta Segara in a statement on Sunday (26/6).
Tirta added that BI considers that Brexit impact will have a relatively limited impact on the domestic economy, both in the financial markets as well as trade and investment activities.
In the domestic financial market, amid the weakness in the financial markets in Europe and Asia, Tirta said that exchange rate remains relatively stable, while the Indonesian stock market is experiencing a correction that is relatively limited, especially when compared with peer countries such as India, Thailand, and South Korea.
In addition to the financial markets, in the medium term, the impact Brexit through trade is also believed to be relatively limited, he added.
For the record, Indonesia's export share to the UK is only about 1 percent of the total exports.
Nevertheless, the continuing impact of the disruption of British-European trade relations, according to Tirta, remains to be seen, given the share of Indonesian exports to Europe (outside the UK) that reaches 11.4 percent in 2015.
"Most of Indonesia's exports to Europe are raw materials," Tirta said.
GHOIDA RAHMAH
