AFTA is: Definition, Members and Purpose
AFTA is: Definition, Members and Purpose – In establishing an association of nations or an association of countries, the thing that needs to be prioritized is how the fate of the people will be in the future.
This thinking will produce a collaboration that can be carried out by countries to be able to reach agreements and mutual benefits. If all countries are profitable, it will have a big impact on the country and even the world.
And from there, AFTA was formed which was created to be able to make countries continue to get benefits or benefits. To understand what AFTA is, it will be explained as follows.
AFTA is: Definition, Members and Purpose
Let's first discuss the meaning of AFTA carefully.
Definition of AFTA
AFTA stands for ASEAN Free Trade Area. The AFTA organization was founded in 1992 in Singapore when the Fourth ASEAN Summit was being held. AFTA is an agreement made by countries in ASEAN in order to create a free trade zone.
This AFTA can be seen as necessary in order to increase an existing economic competitiveness in the ASEAN regional area which is then planned to be achieved within a period of 9 years in 1993-2002.
This plan can go ahead by eliminating tariff fees (import duties of 0-5%) or also tariff fees for ASEAN member countries. So that in this way AFTA can hope that ASEAN will become a world production base and also be able to create a regional market for more than 500 million people in ASEAN.
AFTA Member States
Initially, only 6 countries registered as AFTA members were officially Indonesia, Thailand, Singapore, Brunei Darussalam and the Philippines. Since then the member countries have increased along with the joining of other countries into ASEAN namely as the State of Vietnam in 1995, the State of Myanmar and the State of Laos in 1997, and also the State of Cambodia in 1997. 1999. So this makes the countries that are members of AFTA to 10 countries.
AFTA goals
AFTA was formed with the aim of:
- To enhance economic competitiveness among ASEAN countries by making ASEAN a basis for world market production.
- In order to attract foreign investors and increase trade among ASEAN member countries.
- The last news that was obtained regarding AFTA was an agreement to eliminate all export costs or import of goods for Indonesia, Brunei Darussalam, Singapore, Thailand, and the Philippines in 2010. As well as for Laos, Cambodia, Myanmar, and also Vietnam, import fee waivers have been carried out since 2015.
Afta Influence for Indonesia
For the State of Indonesia, the AFTA cooperation is a fairly open opportunity in exporting agricultural commodities so far it has been generated and at the same time a challenge in order to be able to produce competitive commodity money in the regional market AFTA.
Efforts to get in this direction, it seems that it still requires more serious attention and policies by the government or agribusiness actors, considering that there are some agricultural commodities in Indonesia now and in the future will always be faced with problems regarding increase quality production, capital, policies regarding prices and exchange rates and market competition in addition to a political climate that is not conducive to the agriculture.
It is hoped that the enactment of agricultural regional autonomy in the agribusiness sector will become an impetus to improve the quality of agricultural products so that they can be more productive. competitive in the local, regional and global markets, and at the same time can have a positive impact on the national economy and can increase farmers' income and development area.
In general, the economic situation in Indonesia is very difficult. Indonesia's trade in 2000-2002 weakened, both in export and import activities. Macroeconomic conditions coupled with unstable political stability and poor law enforcement and security have also affected our competitiveness in world trade.
In general, there are several of our products that are ready to compete. Such as palm oil, textiles, electrical equipment, natural gas, shoes and garments. However, there are still many who will be under heavy pressure to enter AFTA. Examples include automotive products, information technology, and agricultural products.
In AFTA, the role of the state in trade will actually be significantly reduced. Because, the tariff mechanism which is the authority of the state is trimmed. Therefore, a very significant paradigm shift is needed, namely from trading activities that rely on state protection to being changed to the ability of companies to compete. Not only nationally or regionally in AFTA, but globally as well. Therefore, management strength, efficiency, capital capability, and product excellence are the keys to success.
In facing AFTA, Indonesia is one of the member countries of ASEAN which still has several obstacles that refer to failure who are we in dealing with AFTA, including namely: in terms of law enforcement, we already know that the sector is poor in Indonesia. If there is no legal certainty, then the business climate will not develop well, so this can be done causing high economic costs that affect the competitiveness of products in the market international.
Another very important factor is that the institutions that are supposed to be involved in facilitating trade and the business world are often indicated by KKN. As a result of the still widespread KKN and various levies made by elements from the government at all levels, the price of products that are sent to the market can also be affected. Regional autonomy is expected to increase the accountability of public officials and boost the local economy which in fact is used to extract as much profit as possible from the business world regardless of the implications. From autonomy it even shows the bad side which can affect the competitiveness of Indonesian products in the world market.
Another problem that needs to be faced is the fact that Indonesia's borders are very wide, both in sea and on land, which are still very difficult to control. Therefore, there was a lot of smuggled goods that weakened the competitiveness of the national industry. Billions of dollars are lost each year because of the inability to properly guard the borders. According to the estimated capacity of the TNI-AL, around 40 percent of it should be used to secure the seas from a lack of funds and other means. The main obstacle for the Indonesian people is changing the mindset, both among officials, politicians, entrepreneurs, or workers. Changing the mindset is very important for our success in entering AFTA.
However, the Taj only faces various problems, from AFTA it is clear that it also brings a number of advantages. First, goods that were originally produced at a relatively high cost can be obtained by consumers at a lower price. Second, as an integrated region together, the ASEAN Region will become more attractive for investment. Indonesia with abundant natural and human resources and has comparative advantages. However, an increase in human resources is a must. Which is where our HR capabilities are still very poor compared to the Philippines or Thailand.
Here's an explanation about AFTA is: Definition, Members and Purpose explained by aroundknowledge.co.id. With the existence of AFTA, it makes the countries that interfere with it experience benefits for the country and its people. Hope it is useful ?
List of contents
Recommendation:
- Belief in the Last Days: Definition, Proof, Signs of the Last Hour,… Belief in the Last Days: Definition, Propositions, Signs of the Last Days, Events at the End of Days, Their Functions and Lessons - What is the Meaning of Faith in the Last Day and Its Benefits?
- Nutrition: Definition, Types, Kinds and Benefits Nutrition: Definition, Types, Kinds and Benefits - In the body of living things there are lots of organs in it that work continuously with one another. And when someone…
- Characteristics of Anecdote Text: Structure, Rules, Purpose and Examples… Characteristics of anecdote text: structure, rules, goals and examples of anecdote text - what is meant by Anecdotal Texts? On this occasion, Seputarknowledge.co.id will discuss anecdotal texts and other matters Which…
- Nationalism Is: Definition, Characteristics, Forms, Purpose and… Nationalism Is: Definition, Characteristics, Forms, Purpose and Examples of Attitudes - What is the meaning of Nationalism ?On this occasion, Seputarknowledge.co.id will discuss Nationalism and other things covered it. Let us…
- 33 Definition of Organization According to Experts (Discussion… 33 Definition of Organization According to Experts (Full Discussion) - This discussion will discuss about a container in which there are several people to carry out activities in accordance with the objectives that have been determined.…
- √ Definition of Soil Pollution, Causes and Methods… Definition of Soil Pollution, Causes and Ways to Overcome It - On this occasion we will discuss Soil Pollution. Which in this discussion explains starting from the notion of soil pollution, its causes, impacts and...
- Enculturation Is: Understanding According to Experts, Functions,… Enculturation Is: Understanding According to Experts, Function, Media, Impact, Process and Examples - What is it What is the meaning of enculturation? On this occasion, Se regarding the knowledge.co.id will discuss it and of course things other…
- Factors Inhibiting Social Mobility: Definition, Factors… Inhibiting Factors of Social Mobility: Definition, Driving Factors and Explanations - What is the meaning of social mobility and What are the inhibiting factors? On this occasion, about the knowledge of Knowledge.co.id will discuss it, including nutritional content and naturally…
- The Names of the Last Days in the Qur'an and Their Meanings The Names of the Last Day in the Qur'an and Their Meanings - Believing in the existence of the last day is the sixth pillar of faith. The last day is certain and it is kept secret when the last day will come. In…
- Faith in Qada and Qadar: Understanding, Proof, Wisdom and… Faith in Qada and Qadar: Definition, Proposition, Wisdom and Their Functions - What is meant by Faith in Qada and Qadar?
- Kutai Kingdom: Founder, Lineage, Heyday and… Kutai Kingdom: Founder, Lineage, Heyday and Fall and Legacy - What is the history of the kingdom Kutai, which is located in Kalimantan? On this occasion, Se regarding the knowledge.co.id will discuss the kingdom of Kutai And…
- Table Tennis: Definition, History, Techniques, Equipment,… Table Tennis: Definition, History, Techniques, Equipment, Rules, Types of Strokes and Scoring Systems - What do you know about Table Tennis? On this occasion, Seputarknowledge.co.id will discuss whether...
- Types of Color Types: Definition, Characters and Explanations Types of Color Types: Definition, Characters and Explanations - What are the types of colors and their explanations? On this occasion, Seputarknowledge.co.id will discuss it and of course the things that also cover it.…
- Definition of International Economic Cooperation, Benefits and… Definition of International Economic Cooperation, Benefits and Forms - Cooperation is an activity that has certain objectives in accordance with a mutual agreement. This collaboration includes many activities such as business, even other purposes. Understanding…
- Example of a Non-Fiction Book Review: Purpose and Benefits of a Review Example of a Non-Fiction Book Review: Purpose and Benefits of a Review - What is meant by a non-fiction book review?
- Consequences of World War II for the World (Full Discussion) The Effects of World War II on the World (Full Discussion) – The dream of everyone in this world is peace and prosperity. In order to achieve this, you need a concern...
- Pancasila as a Source of Values Has Meaning Pancasila as a Source of Values Has Meaning - What is the meaning of the values of Pancasila used as a guideline the life of the Indonesian people? On this occasion, Seputarknowledge.co.id will discuss what the values and meanings of Pancasila are And…
- Popular Regional Dances in Indonesia Most Popular Regional Dances in Indonesia - What are the most popular Regional Dances in Indonesia?, On On this occasion, Seputarknowledge.co.id will discuss this and of course other things as well covered it. Let's see together…
- Short Story Text: Definition, Characteristics, Structure, Elements and Examples Short Story Text: Definition, Characteristics, Structure, Elements and Examples - What is Short Story Text? On this occasion, Seputarknowledge.co.id will discuss short story texts and the things that surround them. Let us…
- Papers: Definition, Characteristics, Functions, Types, Structures, Methods… Papers: Definition, Characteristics, Functions, Types, Structure, How to Make and Examples - What is meant by Papers and how to write them properly and correctly? On this occasion Seputarknowledge.co.id will…
- The Collapse of the Kediri Kingdom: History and Legacy The Fall of the Kediri Kingdom: History and Legacy - The Kediri Kingdom or the Kadiri Kingdom or the Panjalu Kingdom was a kingdom that existed in East Java between 1042-1222. The kingdom is in the city…
- Khiyar Is: Definition, Basic Law, Types And Impacts… Khiyar Is: Definition, Basic Law, Types and Impacts of Its Application - Is that what is meant by khiyar law?, On this occasion, Se regarding the knowledge.co.id will discuss it and of course regarding matters other…
- Chauvinism: Definition, History, Impact, Characteristics, Types and… Chauvinism: Definition, History, Impact and Examples - In this discussion we will explain about Chauvinism. Which includes the meaning, history, impact and examples of chauvinism with complete discussion and...
- The Political Life of the Majapahit Empire: Early History and… The Political Life of the Majapahit Kingdom: Early History and Legacy - How was the Political Life of the Kingdom Majapahit? On this occasion, Seputarknowledge.co.id will discuss the Majapahit Kingdom and other things covered it. Let's look at the discussion together...
- Intersections Are: Forms, Connections, Impacts, Characteristics, Examples… Intersections are: forms, connections, impacts, characteristics, examples and their relationship to consolidation - what is in what do you mean by intersection? On this occasion, Seputardinding.co.id will discuss it and of course other formulas…
- √ The Definition of Patriotism According to Experts, Characteristics, Attitudes and… Understanding Patriotism According to Experts, Characteristics, Attitudes and Examples - In this discussion we will explain about patriotism. Which includes the meaning of patriotism, the meaning of patriotism according to experts, the characteristics of patriotism,…
- Business Entity: Definition, Form, Type and Comparison Business Entity: Definition, Form, Type and Comparison - What is meant by a Business Entity? This time around the knowledge.co.id will discuss the Business Entity and the things that surround it. Let's see together…
- ASEAN Background: Founding Figures, Purpose, Meaning of the Coat of Arms,… Background of ASEAN: Founding Figures, Purpose, Meaning of the Symbol, List of Countries and Principles - What were the reasons behind the founding of ASEAN? On this occasion, Seputarknowledge.co.id will discuss ASEAN and…
- History of the United Nations (United Nations), Principles and… History of the United Nations (UN), Principles and Purpose – For this meeting we will discuss articles about the history of the United Nations (UN) as well as principles and also the goal. Of course we often hear...
- Computer Hardware: How it Works, Types, Examples and… Computer Hardware: How it Works, Types, Examples and Functions - In today's computerized era, we are definitely familiar with computers and their devices. However, some may not know...