JDE (Journal of Developing Economies)
Vol. 4 No. 2 (2019)

Analysis of Indonesian Trade: Case Study After The AFTA Agreement

Poetra, Ronald Pratama (Unknown)



Article Info

Publish Date
29 Dec 2019

Abstract

The ASEAN Free Trade Area (AFTA) began in 1993. The hope of this agreement was that intra-ASEAN trade to grow rapidly turned out to be slow. Based on data from the ASEAN Secretariat in 2016, intra-ASEAN trade experienced a slow journey in the range of 20-24 percent over the past few years. This study empirically analyzed the influence of AFTA on Indonesia's trade structure towards ASEAN using TSI, GL / IIT, and CTB index. In the period of 2012-2017 Indonesia's trade balance against ASEAN suffered a loss. Despite the loss, there was a decrease in trade balance losses from 2015-2017 (after AFTA). To analyze trade there are 10 commodity classifications determined by SITC revision 3. Based on the results of the TSI analysis, there is a specialization of 6 commodities trading which have high export power. The CTB analysis is only commodities of Chemicals and related products, n.e.s, which contribute positively to Indonesian trade. For IIT analysis there are 4 commodities where the average IIT index increases after the AFTA agreement.   Keywords: ASEAN, Trade, AFTA, IIT, TSI, CTB JEL Classification: F180, F140, F130

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Journal Info

Abbrev

JDE

Publisher

Subject

Description

The Journal of Developing Economies (JDE) is a journal published by the Department of Economics, Faculty of Economics and Business, Airlangga University with the ISSN 2541-1012 (print version) and 2528-2018 (online version). This journal is published every 6 months, June and December, through a ...