<![CDATA[International trade involves Indonesia in several regional agreements aimed at improving trade performance, expanding markets, and boosting investment. One form of such an agreement is the FTA (Free Trade Agreement) which gives freedom to trade within a particular region through tariff preferences. Indonesia joined the AKFTA (ASEAN-Korea Free Trade Agreement) and provided an opportunity to conduct free trade with ASEAN member states and South Korea which could giving benefits through improved trade performance. However, a free trade agreement not only provides benefits in terms of tariff elimination but can also affect trade market conditions due to tariff differences with other regions and potentially affect pre-established market conditions. From this phenomenon, this study aims to look at the impact Indonesia is experiencing through the analysis of trade creation and trade diversion on the export side.]]>
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