CHALLENGE FOR ASEAN-CHINA FREE TRADE AGREEMENT ON INDONESIA EMPLOYMENT

This research analyzes the challenges for Indonesian economy towards the implementation ofASEAN-China Free Trade Area (ACFTA) especially on employment opportunity in Indonesia.Using regression technique, the labour cost and change in fix capital are statistically significant ininfluencing the employ...

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Main Authors: Fatimah Riswati, Indro Warsito
Format: Article
Language:English
Published: Universitas Islam Indonesia 2011-09-01
Series:Economic Journal of Emerging Markets
Online Access:https://103.220.113.119/JEP/article/view/2387
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author Fatimah Riswati
Indro Warsito
author_facet Fatimah Riswati
Indro Warsito
author_sort Fatimah Riswati
collection DOAJ
description This research analyzes the challenges for Indonesian economy towards the implementation ofASEAN-China Free Trade Area (ACFTA) especially on employment opportunity in Indonesia.Using regression technique, the labour cost and change in fix capital are statistically significant ininfluencing the employment opportunity. This result implies that ACFTA will challenge the Indonesiancompetitiveness due to increasing labour cost, while ACFTA also potentially increases capitalflow from China which has ambiguous impacts on labour absorption. The SWOT (Strength,Weakness, Opportunity and Threat) analysis recommends for Indonesian government to improvecomprehensive strategy of national industry to be more competitive to China products. Keywords: ACFTA, employment opportunity, structural equation modelJEL classification numbers: F13, F14, F15, F42
format Article
id doaj-art-e23bbc148ed1408782021497ab0f1eab
institution OA Journals
issn 2086-3128
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language English
publishDate 2011-09-01
publisher Universitas Islam Indonesia
record_format Article
series Economic Journal of Emerging Markets
spelling doaj-art-e23bbc148ed1408782021497ab0f1eab2025-08-20T01:51:00ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2011-09-0121CHALLENGE FOR ASEAN-CHINA FREE TRADE AGREEMENT ON INDONESIA EMPLOYMENTFatimah RiswatiIndro WarsitoThis research analyzes the challenges for Indonesian economy towards the implementation ofASEAN-China Free Trade Area (ACFTA) especially on employment opportunity in Indonesia.Using regression technique, the labour cost and change in fix capital are statistically significant ininfluencing the employment opportunity. This result implies that ACFTA will challenge the Indonesiancompetitiveness due to increasing labour cost, while ACFTA also potentially increases capitalflow from China which has ambiguous impacts on labour absorption. The SWOT (Strength,Weakness, Opportunity and Threat) analysis recommends for Indonesian government to improvecomprehensive strategy of national industry to be more competitive to China products. Keywords: ACFTA, employment opportunity, structural equation modelJEL classification numbers: F13, F14, F15, F42https://103.220.113.119/JEP/article/view/2387
spellingShingle Fatimah Riswati
Indro Warsito
CHALLENGE FOR ASEAN-CHINA FREE TRADE AGREEMENT ON INDONESIA EMPLOYMENT
Economic Journal of Emerging Markets
title CHALLENGE FOR ASEAN-CHINA FREE TRADE AGREEMENT ON INDONESIA EMPLOYMENT
title_full CHALLENGE FOR ASEAN-CHINA FREE TRADE AGREEMENT ON INDONESIA EMPLOYMENT
title_fullStr CHALLENGE FOR ASEAN-CHINA FREE TRADE AGREEMENT ON INDONESIA EMPLOYMENT
title_full_unstemmed CHALLENGE FOR ASEAN-CHINA FREE TRADE AGREEMENT ON INDONESIA EMPLOYMENT
title_short CHALLENGE FOR ASEAN-CHINA FREE TRADE AGREEMENT ON INDONESIA EMPLOYMENT
title_sort challenge for asean china free trade agreement on indonesia employment
url https://103.220.113.119/JEP/article/view/2387
work_keys_str_mv AT fatimahriswati challengeforaseanchinafreetradeagreementonindonesiaemployment
AT indrowarsito challengeforaseanchinafreetradeagreementonindonesiaemployment