Overview
- An anonymous U.S. official said Jakarta has told USTR Jamieson Greer it cannot accept some binding obligations from the July accord and wants to reframe them.
- People cited by the Financial Times say U.S. officials see backsliding on removing non‑tariff barriers and on digital trade commitments.
- The July announcement said Indonesia would eliminate tariffs on more than 99% of U.S. goods and scrap non‑tariff barriers, with the U.S. cutting threatened tariffs on Indonesian products to 19% from 32%.
- USTR did not provide immediate comment, and Treasury Secretary Scott Bessent recently described Indonesia as getting “a little recalcitrant” on the deal.
- Negotiations continue and Indonesian authorities have not publicly confirmed the U.S. claims, but Washington warns the talks could collapse or yield weaker terms than pacts with Malaysia and Cambodia.