The Japanese and Indonesian governments have held their first Foreign and Defense Ministry bilateral meeting since Dec. 2015 and have agreed a wide-ranging strategic partnership. It is aimed at reducing their dependence on Chinese supply chains, among other matters. Japan accounted for just 7.2% of Indonesia’s imports in 2020 compared to 27.0% from China. Aside from foreign direct investment, Indonesian importers may choose to prefer shipments from Japan to those from China. While the nature of government support isn’t yet clear there are potential displacement opportunities in several i...