CAFTA provides opportunities and challenges for ASEAN countries, including Indonesia. Interindustry
trade of ASEAN-China is predicted to increase, but it raises some new concerns. There is a competition
among ASEAN countries, especially Indonesia, Thailand and Malaysia for agricultural raw material product
categories. The CAFTA further tighten the competition among ASEAN, especially coupled with the increase in
Vietnam. There was also a competition between ASEAN countries and China to the category of non-agricultural
products (especially manufacturing).