Overview
- A U.S. official told Reuters the July agreement is at risk because Jakarta is reneging on commitments.
- Financial Times reporting cited U.S. concerns that Indonesia is backsliding on scrapping non-tariff barriers and on digital trade pledges.
- The July framework called for Indonesia to eliminate tariffs on more than 99% of U.S. goods while the U.S. would cut threatened tariffs on Indonesian products to 19% from 32%.
- An Indonesian official told Reuters that tariff talks continue, with no specific issues identified in those negotiations.
- Treasury Secretary Scott Bessent recently described Indonesia as getting recalcitrant, and U.S. officials say weaker terms would compare poorly with recent deals with Malaysia and Cambodia.