The Bigger Picture
The British Ambassador to Indonesia, His Excellency Moazzam Malik, talks about Brexit, the UK and Indonesia’s bilateral relations, and the country’s current economic situation. Maina A. Harjani writes
is excellency Moazzam Malik is a humble man, although he also has boundless charisma and personality. We caught up with the British Ambassador to Indonesia at his residence right in the heart of Jakarta. The main topic on the list, was, unsurprisingly, the decision made by the people of the UK to leave the European Union, popularly known as “Brexit”. HE Moazzam is convinced that the country will survive this period of turmoil despite the many changes that are bound to happen in the next couple of years.
“I was surprised by the decision because this is not what we had expected, but that often happens in life and in a democratic system,” he tells us. “That said, eventually you contemplate the decision, accept it and attune yourself to it. For the first 24 hours, yes, I was surprised as most people around the world were, but I started to think about the future and how it would affect us.”
HE Moazzam chooses to focus on the practicalities of making the decision and process work. “When you come to think about it, you realise all the upsides,” he adds.
The UK is a leader in education, the advanced manufacturing, the banking and financial sectors, and the cultural and creative industries, as well as home to some of the world’s leading brands.
“All the things that make the UK such a great country, plus our place in the United Nations and international affairs, that makes us a big player in the world, do not change because of this one referendum,” says HE Moazzam.
When one is able to contextualise it from that perspective, he tells us, instead of the negative implications that have been discussed at length it is obvious that the UK has much to be positive and confident about when looking to the future.
HE Moazzam also emphasises that the UK’S decision to leave the EU will not affect the bilateral ties between Indonesia and the UK. He has had a number of meetings with the Indonesian government, the business community, as well as KADIN on this issue. All sides have agreed that the decision will not have a major impact on relations between the two countries.
“In the past 15 months, we’ve signed seven memoranda of understanding on cooperation in maritime issues, space exploration, higher education, research and technology, policing, sports, and the creative industries—the collaborations that we are building in those areas have not been affected,” he explains.
Meanwhile, on his trip to London in April earlier this year, President Joko Widodo was accompanied by 70 Indonesian businessmen whose trade and investment plans are still on board despite Brexit. At the same time during the visit, Indonesia’s Investment Coordinating Board (BKPM) announced in April that some US$19.5 billion worth of investment deals from the UK out of US$21 billion from the entire EU.
According to HE Moazzam, none of the British companies involved in these investment deals has changed their plans, further proving that relations between the two countries are still strong. As a matter of fact, Indonesia is
still at the early stages of overseas investment, making Brexit an opportunity for Indonesians to invest in the UK because UK assets have become cheaper with the depreciation of the pound.
“This is a great time for Indonesians to invest, trade, holiday or study in the UK. We expect to see a positive effect in our relations, if anything, instead of a negative one,” says HE Moazzam. The exit negotiation between the UK and EU, which is likely to start after March 2017, will last for approximately two years and is expected to create much noise in terms of commentaries and ongoing political debates. Over the medium term despite the ‘noise’, prospects remain strong as the competitiveness of the country is founded in the quality of its higher education, regulatory system, legal system, public infrastructure, geographic location between North America and Asia and its outward orientation.
“We need to look at the source of our competitiveness, our internationalism, openness and our engagement. These are the things which actually determine our place in the world,” concludes the ambassador.
“We need to look at the source of our competitiveness in the world, our internationalism, openness and our engagement.”