Jakarta. Indonesia can take advantage of the trade war between major powers US and China which could get more intense once Donald Trump returns to the White House, according to an expert.

Trump is set to get reelected in January. The president-elect has announced plans to increase the tariffs by an additional 10 percent on Chinese goods coming to the US. The plans give Indonesia a chance to fill the gaps left in the US market, particularly in the electronics sector. However, this is only possible if Indonesia increases the competitiveness of its goods, according to economic expert Esther Sri Astuti.

"Indonesia needs to lower its production costs and [sells its goods] at a more competitive price so they can compete at the global market,'' Esther said Wednesday, as reported by the state news agency Antara.

Indonesia should also expand its trade reach by signing multilateral deals. Without such pacts, Indonesia will only be a "spectator" in the global economy, according to Esther. The analyst then cited Vietnam as an example of a country that benefitted the most from the US-China trade war in 2019. Thanks to its strategic location and vast multilateral deals, Vietnam serves as a transit of Chinese goods that are bound for the US.

"Chinese goods were first delivered to Vietnam, and would later be exported to the US with a 'Made in Vietnam' label," Esther said.

Earlier this month, Finance Minister Sri Mulyani warned that Trump's upcoming tariff policies would not only affect China, but also ASEAN countries. Sri Mulyani claimed that the government would take anticipatory steps ahead of the additional tariffs.

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