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Indonesia faces daunting challenges in push towards manufacturing

Foreign investors needed to be convinced the government is serious on reform; domestic firms must start competing internationally

Growth in the manufacturing sector has lagged the overall economy since Mr Joko took office in late 2014, and last year there were declines in output of major products including clothing, textiles and electrical equipment.

Cilegon, Indonesia

AT a factory surrounded by towering steel mills on the west side of Indonesia's Java island, German engineering giant Siemens is ramping up production of steam condensers, turbines and other specialist parts to fit out power stations across the world.

The plant,...

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