AN ANALYSIS OF DOMINANT FACTORS RELATED TO THE PREPAREDNESS OF SMALL AND MEDIUM TEXTILE, GARMENT AND FOOTWEAR ENTERPRISES IN BANDUNG TO IMPLEMENT ACFTA

Abstract

This research is about the unpreparedness for Bandung small and medium TGF producers to face the ACFTA. The purpose of this research is to find out the dominant factor based on fifteen valid questionnaires in order to find the main factors which really influence TGF producers in the ACFTA. The research use 41 samples of small and medium TGF (textile, garment and footwear) producers in Bandung area; the researcher used purposive sample to get the sample. Thus, this research was conducted from June 19 to June 27 2010 located in Bandung area. Based on the computation of analysis, there are 3 dominant factors; 1st factor (regulation of labor factor) with 29.32% of total percentage is most dominant factor, 2nd factor (raw material handicap factor) with percentage of 23.14% is second most dominant factor and 3rd factor (human resources and development factor) with 12.04% is third most dominant factor. The research concludes that ACFTA success cannot be measured instantly. Specifically, the ACFTA can help bring the improvement in productivity and economic efficiency of ASEAN, the constant pressure from China should be used as a benchmark to reform the resurrection of ASEAN countries. In short term Chinese competition undoubtly will lead to the painful structural in some manufacturing industries