Analysis Of The Impact Of ACFTA (Asean-China Free Trade Area) On The Volume And Price Of Natural Rubber Forms Smoked Sheet Exports Indonesia

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Impact of ACFTA on Indonesian Smoked Sheet Natural Rubber Exports: In-depth Analysis

The ASEAN-China Free Trade Area (ACFTA) free trade agreement, launched in 2004, aims to create a free market between ASEAN and Chinese member countries. This agreement has far-reaching implications for various sectors, including agriculture. One of the agricultural commodities that received significant attention was natural rubber, which experienced an increase in export demand in line with the growth of the automotive and health industry in ACFTA member countries.

Understanding the Impact of ACFTA on Indonesian Natural Rubber Exports

Indonesia, as one of the largest natural rubber producers in the world, is the focus of this research. This study aims to analyze the impact of ACFTA on the volume and price of natural rubber exports in the form of smoked sheets from Indonesia to ASEAN and China. Data analysis was carried out using paired t-test on data before ACFTA (1996-2004) and after ACFTA (2005-2013).

The Results: A Mixed Bag

The results of this study show some interesting findings:

Increased Export Volume to ASEAN

There is a significant difference in the volume of Indonesian Smoked Sheet Natural Rubber exports to ASEAN before and after ACFTA. This indicates that ACFTA has encouraged the increase in the volume of Indonesia's natural rubber exports to ASEAN member countries. This possibility is caused by a decrease in import duty tariffs and reducing trading barriers that occur under ACFTA.

Impact on Export Prices to ASEAN

Research also shows a significant difference in the price of Indonesian Smoked Sheet Natural Rubber Exports to ASEAN before and after ACFTA. However, it should be noted that this difference does not always show an increase in price. Other factors such as fluctuations in global market prices and domestic demand can also affect the price of natural rubber exports.

No Significant Difference to China

The results of the study show that there is no significant difference in the volume of Indonesian Smoked Sheet Natural Rubber exports to China before and after ACFTA. This is probably caused by natural rubber included in the list of highly sensitive lists, which will only be implemented in 2015. That is, the tariff for natural rubber import duties is still high in the study period and has not experienced a significant decrease below the ACFTA.

Differences in Export Prices to China

There is a difference in the price of Indonesian Smoked Sheet Natural Rubber Exports to China before and after ACFTA. Although natural rubber does not enjoy preference rates below the ACFTA in the study period, other factors such as global market demand, currency exchange rates, and transportation costs can affect export prices.

Conclusion and Recommendations

This study shows that ACFTA has a variety of impacts on Indonesian Smoked Sheet Natural Rubber exports. On the one hand, ACFTA encourages an increase in export volume to ASEAN countries. On the other hand, the impact of ACFTA on export prices still needs to be studied further, because it is influenced by many factors.

For Indonesia, the results of this study can be taken into consideration in developing strategies for developing the natural rubber industry in the future. The government needs to consider strategies to maximize the benefits of ACFTA, for example by improving the quality of natural rubber production, diversification of export markets, and increasing the competitiveness of the Indonesian natural rubber industry at the global level.

Further Analysis

This study provides an initial picture of the impact of ACFTA on Indonesia's natural rubber exports. However, a more in-depth analysis is needed to reveal the factors that affect the impact of ACFTA on the price of exports of natural rubber. In addition, it is necessary to consider the long-term impact of ACFTA on the Indonesian natural rubber industry, including its effect on employment, investment, and economic growth.

Benefits of Articles

This article provides useful information for stakeholders in the natural rubber industry, such as producers, exporters, and government. This information can be used as a basis for developing appropriate strategies and policies in order to increase the competitiveness of the Indonesian natural rubber industry in the international market.

Limitations of the Study

This study has some limitations that need to be considered. Firstly, the study only focuses on the impact of ACFTA on Indonesian natural rubber exports and does not consider other factors that may affect the industry. Secondly, the study only uses data from 1996 to 2013, which may not be representative of the current situation. Finally, the study only considers the impact of ACFTA on the volume and price of natural rubber exports and does not consider other aspects of the industry.

Future Research Directions

This study provides a foundation for further research on the impact of ACFTA on the Indonesian natural rubber industry. Some potential future research directions include:

  • Conducting a more in-depth analysis of the factors that affect the impact of ACFTA on the price of natural rubber exports.
  • Considering the long-term impact of ACFTA on the Indonesian natural rubber industry, including its effect on employment, investment, and economic growth.
  • Examining the impact of ACFTA on other agricultural commodities in Indonesia.
  • Investigating the impact of ACFTA on the competitiveness of the Indonesian natural rubber industry in the international market.

Conclusion

In conclusion, this study provides an in-depth analysis of the impact of ACFTA on Indonesian Smoked Sheet Natural Rubber exports. The results show that ACFTA has a variety of impacts on the industry, including an increase in export volume to ASEAN countries and differences in export prices to ASEAN and China. However, the impact of ACFTA on export prices still needs to be studied further, and a more in-depth analysis is needed to reveal the factors that affect the impact of ACFTA on the price of exports of natural rubber.
Q&A: Understanding the Impact of ACFTA on Indonesian Smoked Sheet Natural Rubber Exports

In our previous article, we explored the impact of the ASEAN-China Free Trade Area (ACFTA) on Indonesian Smoked Sheet Natural Rubber exports. In this Q&A article, we will answer some of the most frequently asked questions about the topic.

Q: What is ACFTA and how does it affect Indonesian natural rubber exports?

A: ACFTA is a free trade agreement between ASEAN and China that aims to create a free market between the two regions. The agreement has far-reaching implications for various sectors, including agriculture. Indonesian natural rubber exports are one of the sectors that have been affected by ACFTA.

Q: What are the benefits of ACFTA for Indonesian natural rubber exports?

A: ACFTA has encouraged an increase in export volume to ASEAN countries, which is a significant benefit for Indonesian natural rubber exports. Additionally, the agreement has reduced trading barriers and import duty tariffs, making it easier for Indonesian natural rubber to be exported to ASEAN countries.

Q: What are the challenges faced by Indonesian natural rubber exports under ACFTA?

A: One of the challenges faced by Indonesian natural rubber exports under ACFTA is the impact on export prices. While the agreement has increased export volume, it has also led to fluctuations in export prices due to various factors such as global market demand, currency exchange rates, and transportation costs.

Q: How does ACFTA affect the competitiveness of Indonesian natural rubber exports in the international market?

A: ACFTA has increased the competitiveness of Indonesian natural rubber exports in the international market by reducing trading barriers and import duty tariffs. However, the agreement has also led to increased competition from other countries, which may affect the competitiveness of Indonesian natural rubber exports.

Q: What are the implications of ACFTA for the Indonesian natural rubber industry?

A: ACFTA has significant implications for the Indonesian natural rubber industry, including the need to improve the quality of natural rubber production, diversify export markets, and increase the competitiveness of the industry at the global level.

Q: What are the future research directions for studying the impact of ACFTA on Indonesian natural rubber exports?

A: Some potential future research directions include conducting a more in-depth analysis of the factors that affect the impact of ACFTA on the price of natural rubber exports, considering the long-term impact of ACFTA on the Indonesian natural rubber industry, and examining the impact of ACFTA on other agricultural commodities in Indonesia.

Q: What are the benefits of this study for stakeholders in the natural rubber industry?

A: This study provides useful information for stakeholders in the natural rubber industry, including producers, exporters, and government. The information can be used as a basis for developing appropriate strategies and policies to increase the competitiveness of the Indonesian natural rubber industry in the international market.

Q: What are the limitations of this study?

A: This study has some limitations that need to be considered, including the focus on the impact of ACFTA on Indonesian natural rubber exports and the use of data from 1996 to 2013, which may not be representative of the current situation.

Q: What are the implications of this study for policymakers and industry stakeholders?

A: This study has significant implications for policymakers and industry stakeholders, including the need to develop strategies to maximize the benefits of ACFTA, improve the quality of natural rubber production, and increase the competitiveness of the industry at the global level.

Conclusion

In conclusion, this Q&A article provides answers to some of the most frequently asked questions about the impact of ACFTA on Indonesian Smoked Sheet Natural Rubber exports. The study highlights the benefits and challenges of ACFTA for Indonesian natural rubber exports and provides implications for policymakers and industry stakeholders.