TEMPO.CO, Jakarta - Greece is teetering closer towards bankruptcy after it defaults on a 1,6 billion Euros debt, loaned to the ailing nation by the International Monetary Fund - a failure of which could see it forced out of the Eurozone, especially considering its' latest bailout agreement has expired.
The spokesperson for the Ministry of Foreign Affairs, Arrmanatha Nasir, said that a Greek default will have an impact on Indonesia. "We have thus far maintained good ties with our Greek counterparts - especially in economic cooperation," said Nasir at the Ministry of Foreign Affairs in Jakarta on Thursday, July 2, 2015.
Nasir said that should the situation in Greece deteriorates further - Indonesia's exports could experience some impact, especially since Indonesia exports some of its' palm oil and agricultural product to the Mediterranean state. "The sum of our trade activities with Greece amounts to around US$200 million annually - not huge, but significant nonetheless," he said.
A 'Grexit' - as it is increasingly becoming known - will also impact Indonesians living in Greece. According to Nasir, there are currently 1,040 Indonesians residing in Greece, quite a significant majority of which works in the informal sector. "A further economic contraction may cost them their jobs - which will force them to return to Indonesia," Nasir said.
That said, Nasir said that a Greek default will not significantly rattle the Indonesian economy - as Indonesia's economic fundamentals are sufficient enough allow it to weather the resultant economic stress.
It is known that the Greek economy has almost collapsed entirely, despite the IMF's reluctance to officially declare the nation as bankrupt - preferring to wait until the Greeks head to the polls on July 5. Through the referendum, the Greek citizens will decide whether they are capable paying the obligation to their creditors.
MOYANG KASIH DEWI MERDEKA