Characteristics of Small Medium Manufacturing Industries in the Era of ACFTA : Case Study form West Java

Abstract

Market liberalization have created tight competition, including within ASEAN and China market, as represented in ASEAN China Free Trade Area - ACFTA agreement. The agreement implies that China's products are freely distributed into Indonesian market. Hence, domestic products will loose competitiveness, particularly in the product price compare with the China's. This article aims to explore characteristics of the small and medium manufacturing industry -- SMMI in the Province of West Java in era of ACFTA. Factor analysis was employed and resulted eight characteristics factors. Three main characteristics are comprised of competitiveness, production process, and business growth.