Abstract:
ASEAN Free Trade Area or also known as AFTA is an agreement about the free
trade among ASEAN member countries which is agreed in 1992. AFTA
impementation is expected could bring benefits for the members countries, including
the Small Medium Enterprises (SMEs) businessmen in each country including
Indonesia. One of the examples of SMEs is franchise business, in which the
franchise business is expected could gain benefits from the implementation of AFTA.
Killiney Kopitiam is one of foreign franchise business that already spread its
wing in the Indonesia market since 2006. This research aims to describe the benefits
and challenges that Killiney Kopitiam gains in Indonesia since the implementation of
AFTA that limited in the period 2006-2014. The writer did a SWOT analysis of
AFTA that later through that analysis, the writer found both benefits and challenges
emerge and perceived by the business of Killiney Kopitiam in Indonesia, which
include several sectors such as: economics, investment and cultural.
Through some benefits that Killiney Kopitiam could gain from the
implementation of AFTA, Killiney Kopitiam got more chances to expand its
business operation in Indonesia and increases its income. Challenges appear from the
similar. The main concern of Killiney Kopitiam is how it can overcome those
challenges and developing in the business. Along with the existence of Killiney
Kopitiam's business operation in Indonesia, the business of local coffee shop seems
threaten. The local coffee shop is expected cal overcome this issue by being more
innovative in the market.
