Jakarta, Sept. 25 -- China has just shortened its economic distance with Southeast Asia. The opening of the 134.2-km Pinglu Canal on Sept. 16 cut more than 560 km from cargo routes linking southwestern China to the sea.

For Indonesia, the change creates an opportunity while widening the choices available to companies shaping regional supply chains.

The canal connects the Xijiang River network with the Beibu Gulf and forms part of the New International Land-Sea Trade Corridor linking China with Southeast Asia.

Ships of up to 5,000 tons can now move from inland China to coastal areas along a shorter route, potentially making connections between production centers, ports, and ASEAN markets more efficient.

Indonesia is already part of the...