Legal Implications and Economic Impact of Brexit on The UK Manufacturing Industry and Industry Productivity In Indonesia

DOI

10.2991/978-94-6463-646-8_37How to use a DOI?

Keywords

Brexit; UK Manufacturing Industry; Legal Implications; Indonesian Economy; EU Industry

Abstract

On June 23, 2016, British voters decided to leave the European Union (EU) with a 52% to 48% margin. This decision, known as Brexit, has introduced significant legal and economic uncertainties for UK industries, particularly in manufacturing. Key issues include new trade policies, border controls, record-keeping requirements, employment regulations for EU citizens, and compliance with settlement policies. This study aims to analyze the legal implications and economic impact of Brexit on the UK manufacturing industry, focusing on the uncertainty it has generated and its effects on industrial productivity for UK companies operating in Indonesia. The research employs a qualitative analysis of trade data, legal policy changes, and industrial performance metrics to assess the impact of Brexit on UK manufacturing and its global repercussions, particularly in Indonesia. However this research is only the first part of the whole mix method research. The findings of the research are: first, legal and economic uncertainty in the UK manufacturing industry. The Brexit announcement has caused disruptions due to uncertainties in trade and border policies. Manufacturers report feeling unprepared for the changes, leading to disruptions in production and supply chains. Second, global economic impact. Brexit has not only affected the UK but also the global economy, altering trade balances and reducing exports and imports. UK exports to and from the EU have decreased by approximately 15% post-Brexit. Third, impact on Indonesia. The trade balance between the UK and Indonesia has been impacted, with noticeable reductions in export and import activities. Production disruptions due to delayed raw material supplies further compound these effects. Brexit has created substantial legal and economic uncertainties in the UK manufacturing industry, affecting global trade and industrial productivity, particularly in Indonesia. To mitigate these impacts, the UK requires an active, well-integrated, and well-funded industrial policy within a stable devolution framework.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Bayu Wicaksono
AU  - Henny Saptatia Drajati Nugrahanir
AU  - Harry Djatmiko
PY  - 2025
DA  - 2025/01/31
TI  - Legal Implications and Economic Impact of Brexit on The UK Manufacturing Industry and Industry Productivity In Indonesia
BT  - Proceedings of the International Conference on Strategic and Global Studies (ICSGS 2024)
PB  - Atlantis Press
SP  - 614
EP  - 633
SN  - 2667-128X
UR  - https://doi.org/10.2991/978-94-6463-646-8_37
DO  - 10.2991/978-94-6463-646-8_37
ID  - Wicaksono2025
ER  -