INDONESIA-CHINA’S BILATERAL TRADE PATTERN ANALYSIS, PRE AND POST FULL IMPLEMENTATION OF THE ACFTA

Abstract

This paper intends to study whether Indonesian-China’s bilateral trade pattern has substantially changed
after the full implementation of ASEAN-Cina Free Trade Agreement (ACFTA) in 2010. It also identifies the trade
sectors which have comparative advantage and comparative disadvantage with China. Utilizing descriptive
quantitative analysis, this study comparing the trade patterns pre and post ACFTA. The results showed that the
trade patterns between the two countries are relatively similar between before and after ACFTA. In addition, many
Indonesia’s commodity exports are still based on natural resources. Therefore, it needs trade policies to encourage
higher value-added of the products.