Interconnectivity | NOW! JAKARTA

Interconnectivity

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The world is a very inter-related place these days with things happening in one country affecting many others without even direct connections. The prime example of this is of course the recent “Brexit” scenario with The UK population voting by a narrow margin to leave the European Community.


[caption id="attachment_33217" align="aligncenter" width="1024"]KNUTSFORD, UNITED KINGDOM - MARCH 17:  In this photo illustration, the European Union and the Union flag sit together on bunting on March 17, 2016 in Knutsford, United Kingdom. The United Kingdom will hold a referendum on June 23, 2016 to decide whether or not to remain a member of the European Union (EU), an economic and political partnership involving 28 European countries which allows members to trade together in a single market and free movement across its borders for citizens.  (Photo by illustration by Christopher Furlong/Getty Images) KNUTSFORD, UNITED KINGDOM - MARCH 17: In this photo illustration, the European Union and the Union flag sit together on bunting on March 17, 2016 in Knutsford, United Kingdom. The United Kingdom will hold a referendum on June 23, 2016 to decide whether or not to remain a member of the European Union (EU), an economic and political partnership involving 28 European countries which allows members to trade together in a single market and free movement across its borders for citizens. (Photo by illustration by Christopher Furlong/Getty Images)[/caption]

It didn’t even take an actual event to affect the value of the pound and the Stock Market index , just the decision to take the action in the future, and more scary yet, this also affected markets all around the world even though no actual changes have taken place, since investors start evaluating country risk and exposure based on possible future scenarios well in advance.

The Indonesian economy is quite dependent on raw material and basic manufactured goods exports, especially to China and Japan, and if those countries economies are affected by Brexit then Indonesia will be affected too. So far there has not been too great a ‘ripple’ effect. But let’s keep our fingers crossed. Now read on and see how one of the world’s most dynamic economies Korea fares in its dealings with Indonesia.

NOW! Jakarta

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