Like all countries, Indonesia is shaped by foreign and domestic forces, though these forces are intimately linked. Externally, Indonesia's future will be shaped first by East Asia's economic structure, which is changing as rising costs and government policy in China push industry up the value-added ladder and drive out low-end manufacturers. With its large, literate working-age population and easy access to key international sea lanes, Indonesia is uniquely positioned to benefit from the manufacturing flight from China. These developments take place alongside important changes in the East Asian security environment — namely, a growing competition among Japan, China and Association of Southeast Asian Nations members for control over the South and East China seas. The more investment Indonesia can attract into its value-added industry and its associated infrastructure, the better suited it will be to take on a leadership role within ASEAN as maritime tensions escalate.