• The US trade deal with Indonesia, established in July, is reportedly at risk of collapse.
• Indonesia is accused of backtracking on commitments related to tariff eliminations and non-tariff barriers.
• US officials express concerns over Indonesia's reluctance to adhere to the deal's specifics.
• Indonesian officials assert that negotiations are ongoing and emphasize their commitment to finding a beneficial agreement.

The trade deal between the US and Indonesia, which was agreed upon in July, is facing significant hurdles as US officials report that Jakarta is reneging on several of its commitments. Initially, Indonesia agreed to eliminate tariffs on over 99% of US goods while the US would reduce tariffs on Indonesian products from 32% to 19%. US Trade Representative Jamieson Greer is scheduled to engage with Indonesian officials to address these issues, as consistent communication is critical amid the reported backtracking, according to SCMP and The Jakarta Post.

Concerns have been raised about Indonesia's approach to non-tariff barriers and commitments on digital trade, with US officials indicating that these issues might lead to less favorable terms than those achieved in recent agreements with other Southeast Asian countries like Malaysia and Cambodia. “They’re reneging on what we agreed to in July,” said a US official anonymously, highlighting the complexities in negotiations that have emerged since the initial agreement was reached, according to India Times and The Jakarta Post.

In response, Indonesian officials, including Haryo Limanseto from the Ministry of Economic Affairs, have characterized the ongoing discussions as “normal” and they remain optimistic about reaching an agreement that benefits both parties. They assert that no significant issues have been raised during negotiations thus far, which emphasizes a commitment to maintaining dialogue even as tensions may rise over specific contractual elements, according to India Times and The Jakarta Post.