JAKARTA — Even as the terms of its exit from the European Union remain undecided, the U.K. looks set to take on Brussels over access to Asian markets, with Indonesia’s growing economy set to be the first, and potentially crucial, battleground. While Britain tries to lay the groundwork for future trade agreements, the bloc it is leaving has already brokered a number of deals across the region. Last week, the EU and Indonesia held the fourth round of negotiations over a proposed free trade deal known as the Indonesia-European Union Comprehensive Economic Partnership Agreement. As those discussions were taking place in Indonesian President Joko Widodo’s hometown of Solo in central Java, the U.K.’s Foreign and Commonwealth Office announced the appointment of Richard Michael as Britain’s official export finance representative in Indonesia.
JAKARTA/LONDON — British engineers could be handed lucrative contracts with Indonesia to regenerate its ailing road and rail networks under a government push to boost trade and diplomatic ties with Southeast Asia after Brexit. The move would pit British firms against Chinese and Japanese giants who are vying for influence over Indonesia’s growing economy, in one of the first tests of the UK’s post-Brexit “Global Britain” push. “We are trying to get a greater slice of the action,” Moazzam Malik, the British ambassador in Indonesia, told the Telegraph as UK officials unveiled plans to increase business ties.
BELCOO, NORTHERN IRELAND — On the short bridge between Blacklion and Belcoo stand two clues that the crossing links not only a pair of towns, but two countries. The road-sign speed limits for Blacklion in the Republic of Ireland are in kilometers per hour. In Belcoo, in Northern Ireland, miles are used. Over the last two decades — particularly since the 1998 peace deal which ended three decades of civil war in Northern Ireland — Belcoo, population 540, and Blacklion, population 194, have are effectively operated as one town. “There are no barriers, it’s how people want it,” said Eugene McCann, who runs a well-stocked grocery store and post office in Belcoo, his hometown.
SYDNEY — Most of Australia’s politicians believe that Britain’s June 23 vote to leave the European Union will have little direct impact on Australia’s resource-rich economy, but that does not mean Brexit is being ignored, less than a week before what looks set to be closely-fought national elections. Prime Minister Malcolm Turnbull made a clear effort to play down any potential fallout from the Brexit controversy on Australia’s election and the country’s ties with the U.K. Speaking immediately after the U.K. referendum result, he said the U.K.’s departure from the EU would “have little direct economic impact in the short term as 3% of our trade is with the U.K. and our financial system is not reliant upon the pound sterling. What we see, though, is some short-term volatility on our share market and in the currency market.” Speaking in Sydney on June 27, shadow treasurer Chris Bowen of the opposition Australian Labor Party said that although Brexit could see sharp swings in global financial markets, the consequences would be for the short term and relatively mild. “I would regard the impact of Britain leaving the EU as much less intensive [than] the events of 2008,” Bowen said, referring to the global financial crisis.
JAKARTA – Meeting Indonesian President Joko Widodo on Monday to discuss mutual trade and investment prospects, UK Prime Minister David Cameron told media that “we [the U.K. and Indonesia] are natural business partners and there is much more we can do.” In return for considering British investments, Indonesia wants greater access to the U.K. and to the wider European market for its exports, which are mostly commodities such as palm oil, rubber, coal, coffee, copper, oil and natural gas. “The lower tariff [is] needed on Indonesian [primary] products like wood, clothing, coffee and fisheries,” Widodo said after meeting Cameron, adding that British applications for investment in Indonesian infrastructure would be considered.