The Economic And Trade Impact Of Britain'S Departure From The EU To ASEAN And Indonesia

The ASEAN and the European Union are major trading partners, and the ASEAN exports to the EU mainly for agriculture.

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The main products imported from the European Union include machinery, household appliances and so on, including chemicals, machinery and pport equipment.

According to statistics released by the official website of the European Union, the amount of EU exports to ASEAN reached 83 billion 43 million euros in 2015, and the amount of imports from ASEAN amounted to 118 billion 464 million euros.

The European Union is the largest source of investment for the ASEAN, and EU enterprises invest an average of 14 billion 800 million euros per year in the ASEAN region.

Britain has also been an important strategic trading partner for Indonesia. Its bilateral trade volume with Indonesia reached 2 billion 300 million US dollars in 2015, and its investment in Indonesia amounted to US $503 million 220 thousand, ranking the 10th largest investor in Indonesia.

The British referendum on whether to leave the European Union in June 23rd (2016).

At the end of April (2016), at the end of April, the president of Indonesia said that the European Union and the United Kingdom were important strategic partners in Indonesia.

Indonesian local scholars and experts believe that if the EU is the largest source of investment and the main trading partner of the ASEAN, if Britain takes off Europe, it will make significant changes to the EU, but the changes will not have much impact on the ASEAN.

Britain's most important concern for Europe is that it may prompt other Member States to follow suit from the European Union, though the possibility is very low.

As EU and ASEAN are working together under the regional framework, Britain has a limited influence on EU cooperation.

On the other hand, if Britain fears that it will have a negative impact on itself, it will have to renegotiate itself because it can no longer enjoy the concessions that the EU has signed with other countries.

Yose Rizal Damuri, director of economic research at the Indonesian Center for strategic and International Studies (CSIS), said economists have different opinions about the economic impact of Britain's departure from Europe. Some economists believe that Britain's departure from Europe may be a drag on the UK's economic development. As the main destination countries of the UK's major ASEAN countries (including Indonesia) are exported to Europe, if Britain's influence on economic growth is bound to be negative, it will have a negative impact on the ASEAN countries exporting to the UK.

However, other economists believe that Britain's economic growth will be encouraged by the fact that Britain is free from Europe so that Britain can freely negotiate new trade agreements with other countries, that is, Southeast Asian economies will have new opportunities to deepen their cooperative relations with the UK, including the signing of new trade agreements without the approval of the European Union.