ASEAN–China Free Trade: The Impact of ACFTA Policies on the Sustainability of Indonesian SMEs
DOI:
https://doi.org/10.55657/jpmb.v3i01.172Keywords:
ACFTA, China, Indonesia, SMEsAbstract
This study explores the impact of the ASEAN-China Free Trade Area (ACFTA) policy on the sustainability of Small and Medium Enterprises (SMEs) in Indonesia. Utilizing a qualitative approach, the research delves into the experiences, perspectives, and challenges faced by SMEs in the context of increased market competition and trade integration. The findings indicate that ACFTA presents both opportunities and challenges for Indonesian SMEs. On one hand, the policy enhances market access and eliminates tariffs on a majority of goods, providing SMEs with potential export opportunities to China. On the other hand, the influx of cheaper Chinese imports poses significant competitive pressures, as many domestic SMEs struggle with production scale and pricing competitiveness.
Furthermore, the study highlights the importance of a balanced trade relationship and substantial foreign investment flows from China, which contribute to regional economic integration. However, it also points out the risks associated with over-dependence on foreign capital. To maximize the benefits of ACFTA, the study recommends implementing supportive policies that enhance SMEs' competitiveness, capacity building, and technological adaptation. Government initiatives, including training, financial assistance, and market protection, are crucial in helping SMEs navigate the challenges posed by increased competition. Ultimately, the research underscores the potential for Indonesian SMEs to leverage economic integration for sustainable growth and contribute to national economic development.
References
Astatiani, A., & Tobing, C. R. E. L. (2023). Dampak Pelaksanaan Acfta (Asean-China Free Trade Agreement) Pada Fdi Ektra-Regional Di Indonesia. Jurnal Ilmiah Global Education, 4(2), 735–746. https://Doi.Org/10.55681/Jige.V4i2.829
Asyono, A. H., & Samputra, P. L. (2023). Analysis Of ASEAN-China Free Trade Area (ACFTA) Cooperation From A Competitive Intelligence Perspective. International Journal Of Social Service And Research, 3(7), 1762–1771. https://Doi.Org/10.46799/Ijssr.V3i7.445
Fakultas Ilmu Sosial Dan Ilmu Politik, Universitas Sulawesi Barat, & Khaldun, R. I. (2022). Peran Penting Pemerintah Indonesia Untuk Memanfaatkan Kembali Kesempatan Dalam ACFTA. Resolusi: Jurnal Sosial Politik, 5(2), 160–170. https://Doi.Org/10.32699/Resolusi.V5i2.3596
Kementerian Perdagangan, & Evelyn Nathania Dianzah, Y. (2022). The Effect Of Regional Trade Agreements On ASEAN Trade Flows. Journal Of Indonesian Applied Economics, 10(2), 40–71. https://Doi.Org/10.21776/Ub.Jiae.2022.010.02.2
Ma, Y., & Miao, P. (2024). Does China’s CAFTA Strategy Threaten Or Promote The Development Of High-Tech Industries In ASEAN Countries? Applied Economics Letters, 31(1), 40–45. https://Doi.Org/10.1080/13504851.2022.2123100
Muhammad Fhareza Deri. (2024). ASEAN–China Free Trade Agreement: Ekonomi Politik Di Indonesia. Jurnal Perdagangan Internasional, 2(1). https://Doi.Org/10.33197/Jpi.V2i1.1944
Nasution, S. N., Suhaidi, S., Harianto, D., & Leviza, J. (2022). Standar Nasional Indonesia Terhadap Produk Barang Dalam Kerangka Perdagangan Bebas World Trade Oraganization (Wto) Dan Asean-China Free Trade Agreement (ACFTA). Mahadi: Indonesia Journal Of Law, 1(2), 294–312. https://Doi.Org/10.32734/Mah.V1i2.9522
Rimapradesi, Y., Hidayat, R. F., & Alif, N. M. (2023). Implikasi Acfta (Asean China Free Trade Area) Terhadap Perkembangan Umkm (Usaha Mikro Kecil dan Menengah) di Indonesia. Jurnal Al-Iqtishad, 19(1), 83. https://doi.org/10.24014/jiq.v19i1.19611
Sara, R., & Hasnawan, Y. (2024). Legal Politics Of The Asean-China Free Trade Agreement (Acfta) In The Principles Of National Economic Prosperity. International Journal of Engineering Business and Social Science, 2(03), 1067–1074. https://doi.org/10.58451/ijebss.v2i03.130
Sugiyono. (2017). Metode Penelitian Kuantitatif Kualitatif dan R&D. Alfabeta.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Dio Samudra

This work is licensed under a Creative Commons Attribution 4.0 International License.