The impact of AC-Free Trade Area on the performance of industrial sectors in Indonesia
Abstract: ASEAN-China free
trade has an impact on economic performance among sectors in Indonesia. One of
the sectors affected by the free trade is the industrial sector that is the
largest contributor to national income sector in Indonesia. This study is
intended to explain the impact of the ASEAN-China free trade on the performance
of the industrial sector in Indonesia. This is a descriptive qualitative
research aimed to qualitatively analyze and describe the impact of the
ASEAN-China free trade on the industrial sector in Indonesia. It can be
concluded that the performance of the industrial sector has decreased during
the implementation of the ASEAN- China free trade. This is indicated by (1) the
contribution of industrial sector to GDP which decreases and the contribution
to employment has no significant change, (2) the industrial sector grew on
average per year lower than the average growth of GDP, (3) the contribution of
the industrial sector in Indonesias total exports tend to decrease too.
Industrial exports grew on average per year lower than the growth of total
exports, (4) the contribution to total imports of industrial products
Indonesian non-oil imports increases. Imports of industrial products
experienced average growth per year which is higher than the growth in total
non-oil imports, (5) the percentage of realization of investment (both domestic
and FDI) in the industrial sector to total investment in Indonesia also tends
to decrease, (6) the percentage of bank extended credit to the industrial
sector tends to decrease.
Author: Eko Wahyudi, Boediono
Journal Code: jpakuntansigg140036