1 Does Trade Openness Jeopardize Local Industry? Ario Seno Nugroho 1 , Mohammad Fachrudin 2 , Fardhani Hamiputri Akhzan 3 1 Polytechnic of State Finance STAN, Jl. Bintaro Utama Sektor V, Tangerang Selatan, 15222, Indonesia. email: ario_sn@iuj.ac.jp 2 Polytechnic of State Finance STAN, , Jl. Bintaro Utama Sektor V, Tangerang Selatan, 15222, Indonesia. email: mahrus08@gmail.com 3 Directorate General of Customs and Excise, , Jl. By Pass A. Yani , Rawamangun, 13230. email: fardhaniputri@gmail.com Abstract In general, trade liberalization is believed as a tool to increase economy. Many free trade agreements (FTAs) has been signed by countries all over the world. Increasing economy capacity and decreasing the price of goods are the example of their targeting result. On the other hand, some economists argue that FTAs might harm a country local industry. In contrast, there are only limited number of studies which can explain the relationship between these two variables. Hence, empirical research regarding the effect of FTAs on local industry is needed in order to provide insight for the government. This paper attempts to explain the effect of FTA on manufacturing growth in West Java using panel data in the period of 2012 to 2015. The FTA in this paper is represented four FTAs involving Indonesia as the center of observation). The analysis of data in this research uses the regression analysis. The result shows Australia and Korea FTA have a positive significant impact to the regional manufacturing growth while India FTA has a negative one. In addition, Japan FTA has a non significant impact to the regional manufacturing growth Keyword: free trade agreement, manufacturing growth. Introduction Background In the new global economy, countries come to see the international trade as an activity which can benefit them in the term of free trade by exceeding the production and consumption deviation. The free trade policy is preferable to other trade policies. These two arguments are believed by many economics scholars. (Krugman dan Obstfeld 2009)