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Indonesia must seize trade war opportunity

Jakarta needs export-boosting policies to draw global manufacturers diversifying away from China

| Indonesia
Jokowi has been reluctant to tackle the vested interests in the bureaucracy.    © Reuters

As the trade tensions between Beijing and Washington push global manufacturers to consider moving more production out of China, they are thinking about where to go.

One common option is Vietnam, which has been working hard over the last decade to attract Japanese, South Korean and other manufacturers diversifying away from China. Then there is Bangladesh and Cambodia, with their low wages and a focus on the labor-intensive textile industry. Some pioneers are even talking about Ethiopia, where labor costs are even lower than in Asia, China has been building infrastructure and industrial parks, and there is preferential access to the U.S. market.

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