DAMPAK PENERAPAN ACFTA TERHADAP GLOBALISASI INDUSTRI JAMU DAN HERBAL INDONESIA

Abstract

This research explains the impacts of ACFTA on the industrial globalization in the
Indonesian jamu and herbal industry. Industrial globalization itself is crucial for the
development of a country. The development of a country is needed for the welfare of the
people and the industrial globalization helps to smooth the process out by allowing the
country to connect and integrate with the global world through international trade and
investment aided by information technology in order to achieve the objective, which is the
development itself. Indonesia is one of the countries, which has the privilege in having
integration with the global world through international agreements. One of the
international agreements that Indonesia has signed is called ASEAN-China Free Trade
Area (ACFTA). ACFTA is a multilateral agreement comprised of the agreements between
ASEAN member countries with China in order to minimalize the trade barriers not only
from the tariff wise but also non-tariff wise between the member countries. Indonesia as
one of the member countries has experienced some positive impacts from this international
agreement such as the increase of the level of its economic development and global
networking. However, there are some negative impacts in implementing this international
agreement from the perspective of the sale of Chinese illegal herbal commodities in
Indonesia that contains hazardous materials and the spread of Chinese illegal
manufactures of herbal products in Indonesia. The government of Indonesia is expected to
mitigate these issues by formulating and implementing strict trade policy and also
maintaining the quality of the imported and exported products in order to succeed this
international agreement.