Abstract
Indonesia and ASEAN countries generally have relatively the same resource, mainly as a fellow producer of agricultural products. Joining Chinainto the regional economic integration through theagreement China-ASEAN Free Trade Area (CAFTA), giving new opportunities and challenges for them. The opportunities come from the openingof the large market of China whose many products are relatively different. But it is also a challenge because of the pressure of competition. Competition pressures come not only because of the influx of cheaper Chinese products, but also competition among ASEAN countries due to the similarity of their products. For example, Indonesia and Malaysia are the two largest palm oil exporters in the world, and Thailand (with Indonesia) is the world's major exporters of natural rubber. This paper aims to examine the trend of complementarity and similarity CAFTA countries and the correlation to exports trend. By using annual time series data 1995-2010, the analysis is based on the two main indicators; complementarity and export similarity index.
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