DAMPAK ASEAN–CHINA FREE TRADE AREA TERHADAP PENURUNAN KELANGSUNGAN USAHA MIKRO DAN KECIL

ABSTRACT: ASEAN China Free Trade Area (AC-FTA) was effectively implemented in 2010 arising pros and cons. The argument for the implementation of AC-FTA is this free trade will expand market opportunities of Indonesian products. While the argument againts AC-FTA believe that it will weaken the competitiveness and threaten the survival of small and medium enterprises in Indonesia. This study aims to analyze the impact of AC-FTA on the decreasing of business survival of mi-cro and small garment industriwa in Botoran, Tulung Agung of East Java. The aspects of business survival under study are in terms of changes in sales revenue, sales volume, working capital, number of workers both permanent and non-permanent, profit, the volume and value of production, sources of raw materials, and the marketing coverage area. The method used is a paired sample t test analysis which compares the mean values   of two set of variables before and after the ACFTA. The result shows that all aspects of business continuity of garment industry decreased significantly after 2 years implementation of AC-FTA. The result indicates that SME are not yet able to compete with imported products from China either in terms of the quality of raw materials, design, product and price.
Keywords: AC-FTA, business survival, paired sample t test, garment industries, small scale industries
Penulis: Rokhedi Priyo Santoso, Muhamad Ady Fahruriza
Kode Jurnal: jpmanajemendd130526
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