The Impact of ASEAN-China Free Trade Area (ACFTA) Towards Indonesian CPO Export Value

ASEAN-China Free Trade Area (ACFTA) was formally effective on January 1st, 2010. The broader free trade area than before (AFTA without China) has made many changes in strategies of the ASEAN countries in doing the trade and their exports. Indonesia is still focusing its export on crude palm oil (CPO) (Indonesian Palm Oil Board, 2007). Before ACFTA, the market of Indonesian CPO was mainly in ASEAN. So, it seems that positively, the impact of ACFTA will increase the Indonesian CPO export to China instead of only in ASEAN market. The data used in this paper is secondary data during 2008 to the mid of 2010 to describe the changes on Indonesian CPO export value to China. Analyzing the impact of ACFTA towards Indonesian CPO export value was done by comparing the export value during the period and using trend of time series, it would be known whether the impact is positive or not. The objectives of this paper are to understand about the impact of ACFTA towards the Indonesian CPO export value and to give insights on how to react effectively in the broader free trade agreement