Indonesia’s labor costs, however, are still lower than that of China and Thailand, but higher than Vietnam.
The Post further reports that
a sizeable amount of investment from Taiwanese firms will soon enter Indonesia, not only in the sectors where investment is already ubiquitous, such as textiles, garments and footwear, but also in the high-technology industry.and that
Taiwan is the ninth-largest foreign investor in the country, driven by the existence of big firms like Acer, Chinatrust Bank, Evergreen Group, Pao-cheng Shoes Co. and President Food.In a nutshell, jobs will be shifted to Indonesia from China due to changes in relative wages. This is the essence of the global manufacturing sector now.