ACFTA and the Destruction on the Footwear Industry in Wedoro Sidoarjo

Abstract

The implementation of ACFTA (ASEAN Cina Free Trade Area) raises a variety of support and resistance from Indonesian society. The impact of the implementation of ACFTA is many Chinese goods entering to Indonesia with a cheap price. According to the concept of rational choice, consumers will choose the things that are cheaper and had same quality. Meanwhile, according to the theory of public policy, the government is obliged to make policies that benefit for society and the state. The implementation of ACFTA policies that became a problem because most assume will have a positive impact, and others think it will bring negative impact to the nation. This study also used the theory of public policy, cooperation, industry and the concept of consumer behavior, and political economy which is rational choice. This study aims to describe and analyze (1) the implementation of ACFTA in East Java as well as the factors that pose challenges and impacts associated with the implementation of the ACFTA, especially in the footwear industry Wedoro; and (2) the role of the Indonesian government in support of in the implementation of policies, especially those related to the implementation of ACFTA in the footwear industry Wedoro. This research was used qualitative and interpretative method that used to the deepest understanding of the seven informants: shop owners and employee. The informant election using snowball technique. In addition, researchers also used a literature review of books, journals, and the internet to find the required data. The research location that is in the Wedoro, Sidoarjo. The results of this study is the impact of the implementation of ACFTA by the government of Indonesia to the footwear Wedoro industry is (1) a decline in sales for local producers have to compete with footwear made in Cina that had many variety and cheap; (2) For Wedoro entrepreneurs who unable to compete with product of Cina, their footwear industry was efforts be bankrupt; (3) The number of visitors and consumers Wedoro which came to be deserted; (4) The Wedoro Fair wasn’t performance again; (5) Some stores changed to sell footwear made in Cina; (6) The variety of Wedoro footwear became didn’t up to date because the price of raw material are getting more expensive

Keywords: ACFTA, public policy, footwear industry, export-import, political economy