How will the Greece Crisis Affect Indonesia

After six months of not writing anything on this blog, I finally have the will to write again, especially with all the hype on Greece crisis.

The banks in Greece have now been close for two weeks, business starts to struggle for transactions, and the people of Greece can only withdrawal a maximum of 60 Euros each day, yes, EACH DAY. Below are pictures of some of the long line at the ATM in Greece,

Courtesy of Ashley Smith, twitter @Ashley_Realtor

Courtesy of Ian Fleming, twitter @SchweizerGeld

Fortunately, as of today, July 13th 2015, Greece prime minister, Alexis Tsipras have finally agreed to the creditor's demand for bailing out Greece's economy. The process was challenging and brutal, and Greece have extended the agreement since February, where they could've got a better deal than the one agreed.

What will happen if Greece default on its debt, and what are the affect towards Indonesia? The "Grexit" has been thrown around for the last six months, and it was written on the document forwarded by by the Euro zone finance ministers was initially timed out clause, according to Bloomberg. This means, it was a high possibility and in a very high consideration that Greece was about to exit the Euro, but fortunately Mr. Tsipras finally agreed to the reform.

My analysis resulted to a very small affect to Indonesia if Greece defaulted on its debt. The main cooperation created between Greece and Indonesia is so far in the maritime and tourism industry, and if Greece default it doesn't really affect Indonesia because of the small Greeks tourist in Indonesia, Indonesia's economy is more driven by the western economy such as the UK, US, and also Indonesia's neighboring countries such as Australia, Singapore, Malaysia and many more.

On another news, the head of Federal Reserve, Janet Yellen is planning to increase the U.S. interest in 2015, speculation has been made that the rate will hike two times during this year alone, and we are already half way through 2015. Stay tuned to my next blog to know what will happen to Indonesia if the rate hike do happen in the U,S,

Cheers.

Comments

Hutang Indonesia yang ga Karuan itu...

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