TRADE RELATION BETWEEN INDONESIA AND CHINA IN THE ACFTA FRAMEWORKS IN THE PERIOD OF 2008 - 2011

Abstract

This research aims to explain about the existence of ACFTA, in this case that how the linkage between the implementation of ACFTA influence the trade relation between Indonesia and China, advantages and disadvantages ACFTA to Indonesia, and what is Indonesia national interest in joining ACFTA, why ASEAN choose China as the partner on free trade cooperation. The explanation of this topic will be limited in 2008-2011, which in 2010 is the beginning of the ACFTA implementation. This research used qualitative research methods with descriptive analysis about the impact of ACFTA on trade relation between Indonesia and China in period of 2008-2011. Through the analysis of the data on the trade relation between Indonesia and China in the framework of ACFTA, the author's concludes the roles of ACFTA in the trade relation between Indonesia and China, such as increasing the total trade between Indonesia and China, increasing the Foreign Direct Investment to Indonesia, and stimulate the Indonesia economic growth. Those roles can be achieved due to the several aspects that authors found, such as ACFTA purposes declaration, the popularity on the successful of ACFTA, and the mutual cooperation.