U.S.-Indonesia Trade Agreement on Shaky Ground

The U.S.-Indonesia trade agreement, hailed as a significant breakthrough in July, faces potential unraveling as Indonesia backtracks on commitments, sparking concern among U.S. officials. The agreement aimed to eliminate tariffs and address non-tariff barriers, but recent developments indicate a struggle to maintain terms beneficial to both nations.

The U.S.-Indonesia trade agreement, once celebrated as a groundbreaking achievement, teeters on the edge of collapse as Indonesia reneges on key commitments, according to U.S. officials.

Indonesian authorities maintain that tariff discussions remain on course, albeit needing language harmonization, highlighting emerging tensions in international trade relations.

U.S. officials voiced concerns over potential negative outcomes, noting Jakarta's hesitation to uphold promises on digital trade and non-tariff barriers, overshadowing progress seen in U.S. trade deals with Malaysia and Cambodia.