What's Wrong with ACFTA (ASEAN-China Free Trade Agreement)

Start from January 1, 2009 in Indonesia applies ACFTA. ACFTA stands for ASEAN-China Free Trade Agreement. This is kind of trade agreement between the countries around Southeast Asia and China. What is the effect for my country? A lot of product from ASEAN and China-free entry into my country (Indonesia). Many public opinion response to this agreement. There is pro and contra opinion.

The pro opinion from the people said that they can get product with the cheaper price. Actually many products which come to my country competing with local products which exist first. There are different price between two product, local and ACFTA, like Chinese product. It can be look from many product which flooded in my country like mobile phone, laptop, lamp, housewares, electronic equipment. Because there are many people with medium level and below for income in my country. They are very welcome to these product, and receive their product.

The contra opinion from the people said that they aren’t ready with many products from Southeast Asia and China come to my country. They confuse in choosing the various product, which product they can trust.

courtesy of http://faculty.msb.edu
courtesy of http://faculty.msb.edu

Who was felt the impact of the ACFTA

Entrepreneurs/businessman who will felt the impact of this agreement. Because the  businessman who have the company run the wheel of economy in my country. They should revitalize their business, including the employee. Do they have to panic? Yes of course. Especially textiles and cosmetics sector. Because this kind of threat for them.  Maybe many company collapsed because losing to compete with products from ACFTA. Another sector which felt the impact is food and drink company. Because many of the raw materials used are imported from other country. And because this is world agreement, they can’t deny it.

The simple case is ACFTA give the opportunity for China to sell cosmetic products in my country. China's product prices will threaten Indonesian businessmen products. And the biggest threat actually comes from the Indonesian consumer mistrust  to buy domestic products.

How to anticipate the ACFTA

  • Yesterday I watched talk show in my television about this topic. The economic expert said that there is maybe some delay for next 6 months. So, many company could prepare anything to fight ACFTA. But it difficult for agriculture, manufacturer and mining sector, because they will ready for next 5 years.
  • There is a national standard for quality . All the product who come to my country have to pass all the exam to meet national quality standards. Including permits (legally permits) and quality. For food, drink and cosmetic must have a health certificate of the world (safe use). Because consumers could impaired for the difference in quality. Like products which containing harmful ingredients for health, such as mercury. Such cases have appeared in cosmetic products, food and toys.
  • Showing unique product features as product competitiveness ACFTA. Many products produced in my country, like Batik, statue, handy crafts, furniture with international standard. And all these product have good quality

Batik is one of indonesia product

I am not economic expert. But I like to follow the economic news from television, internet and newspaper. So I can give a little opinion about this and I hope it benefit for my country as a solution. I know I am too little, And I can't show my power to my country. I hope by this writing I can share something little become useful for us.

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Comments 14 comments

Hello, hello, profile image

Hello, hello, 7 years ago from London, UK

Usually these deals are for somebody to get a good deal out of it. I myself can't see any good coming from this agreement because your people produce the same goods and at the same price. Thank you for highlighting this problem of your country.

prasetio30 profile image

prasetio30 7 years ago from malang-indonesia Author

Thanks Hello for supporting this hub. And your kindness give your appreciation about this agreement. I agree with you, I think there are many people will loosing their job. Because their factory will collapsed and can't compete with products from china. I hope the best for my country and have the best solution.

profile image

"Quill" 7 years ago

Free trade balancing the trading books, creates jobs within out=r nations...I say it is good but we need people who are making the deals held accountable as well...


prasetio30 profile image

prasetio30 7 years ago from malang-indonesia Author

Thanks Quil. I agree with you. Thanks for share your opinion about this topic.

JannyC profile image

JannyC 7 years ago

Very informatived I learned something new.

prasetio30 profile image

prasetio30 7 years ago from malang-indonesia Author

Thanks JannyC for supporting this hub. I hope we can learn something from here.

denny saloon 7 years ago

don't worry, at first everything so seem difficult. but next, the problems will going well.

prasetio30 profile image

prasetio30 7 years ago from malang-indonesia Author

Thanks Mr.Denny. I think with all the support of Indonesian people, all the problem will going well. Nice comment.

febriedethan profile image

febriedethan 7 years ago from Indonesia

Hi Pras, this is something that we can't avoid it, the free trade! Our government should be prepared long ago, but sigh..what can I say, the corruption is high and the time for setting investment in our country is too long, the high cost production, and the labor is very demanding, etc and we can't avoid the China goods either. This is a hard homework for our government.

A friend of mine told me, she bought a t-shirt from China for $6, but if she bought for a dozen the prize will be $8!

So, the competition is really tough.

prasetio30 profile image

prasetio30 7 years ago from malang-indonesia Author

Thanks febrie for open your mind about this topic.Like you said above we can avoid it. But as a good citizen I always support and try ti buy local product. Wow......Dozen of t-shirt just for $8...Hmmm. Not bad, but for quality, I don;t think so.

febriedethan profile image

febriedethan 7 years ago from Indonesia

The quality is good Pras, I saw them myself, the t-shirts look alike those which are sold in FO or boutiques. o yes, one thing, China is able to make a winter jacket (sold in Europe) that has the same quality as what our garment made and they sold it in half price! But of course, I have to support local products especially foods :)

prasetio30 profile image

prasetio30 7 years ago from malang-indonesia Author

Sorry Febrie, I didn't knew about that. Thanks for you explanation. We all know that China could make anything with the same character or the same shape. We have to learn from China about the spirit to grow. Thanks febrie on the second visit and I really appreciate your criticism.

Micky Dee profile image

Micky Dee 6 years ago

You always try to have the best insight and information to help with your decisions. You have a great heart too! God bless Nephew!

prasetio30 profile image

prasetio30 6 years ago from malang-indonesia Author

Good evening, my uncle. Thanks for dropping by and always give me motivation. Thanks for your compliment about me. You are really the best uncle I've ever had. Good bless you! ~prasetio

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