• Indonesia is reportedly backtracking on commitments made in a July trade deal with the US.
• The agreement involved reducing US tariffs on Indonesian goods from 32% to 19%.
• US officials express concerns that Indonesia's changes could lead to worse trade agreements.
• The deal originally aimed to boost trade in sectors like agriculture and manufacturing.
• Indonesian representatives suggest negotiations are still on track despite US apprehensions.

A US trade deal with Indonesia, first announced in July, is reportedly at risk of collapsing due to Jakarta's reluctance to honor several commitments made during negotiations. According to unspecified US officials, "They're reneging on what we agreed to in July," raising significant concerns about the future of trade relations between the two nations, as reported by both South China Morning Post and The Jakarta Post.

The July agreement outlined Indonesia's commitment to eliminate tariffs on more than 99% of US goods while the US would reduce tariffs on Indonesian products from 32% to 19%. US President Donald Trump had termed the deal a significant win for various stakeholders, including American manufacturers and tech companies. However, Indonesian officials have since indicated an inability to comply with certain binding commitments, suggesting they want to reframe the terms of the agreement, according to information from Reuters.

Concerns among US officials include Indonesia's potential "backsliding" regarding the elimination of non-tariff barriers that impact US agricultural and industrial exports, alongside commitments related to digital trade. A specific US official noted that changes in Indonesia's stance could lead to more disadvantageous agreements than those accomplished with neighboring Southeast Asian nations, such as Malaysia and Cambodia, highlighting the ongoing complexities in trade discussions, as emphasized in reports from The Jakarta Post and Reuters.

In response to these developments, a spokesperson from the Indonesian government has asserted that tariff negotiations are still proceeding as agreed and noted that "harmonization of language" is needed for the agreement to move forward. This contrasts with US accounts of the negotiations, which imply a more contentious atmosphere surrounding the trade deal, highlighting the ongoing diplomatic challenges faced by both countries in realizing the agreement, as reported by The Jakarta Post and Reuters.