Brexit impact on June trade insignificant

JAKARTA. The UK's decision to leave the European Union did not significantly affect bilateral trade between Indonesia and the UK last month, Trade Ministry director general for international trade negotiations Iman Pambagyo has said.

The UK, the second-largest economy in Europe, chose to leave the EU in a referendum on June 23 that ended with 51.9 percent of voters backing the leave option, known as Brexit.

"In general, the UK’s exit from the EU will not have much impact on our bilateral trade relations with the EU and the UK," Oman said after an Idul Fitri gathering at the Trade Ministry on Thursday in Jakarta.

Despite the limited impact on the trade balance, Iman asserted that the ministry had to keep its eyes open and anticipate the impact of Brexit on global financial markets and investment, including that in the country.

"It's too early to guess what will happen next. There could be a negotiation between the UK and the EU in September or October. We still do not know how this will play out," he explained.

Earlier, Trade Minister Thomas Lembong said Indonesia was still in favor of signing the Comprehensive Economic Partnership Agreement (CEPA) with the EU. However, he predicted that Brexit could cause a slight delay in the negotiations as the EU would shift its focus to dealing with the UK's exit. (Ayomi Amindoni)