US-Indonesia Trade Talks Hit Snags on Key Pledges

Indonesia and the United States are navigating tensions in ongoing trade negotiations that could jeopardize a preliminary agreement reached in July, as American officials accuse Jakarta of backtracking on key commitments. The framework, announced during talks between President Donald Trump and Indonesian President Prabowo Subianto, aimed to reduce U.S. tariffs on Indonesian exports from 32 percent to 19 percent in exchange for Indonesia opening its markets to American goods and services.

The deal outlined Indonesia's purchase of approximately $19 billion in U.S. products, including 50 Boeing jets, along with increased imports of soybeans and energy products. Jakarta also pledged to eliminate tariffs on more than 99 percent of U.S. imports and remove nontariff barriers, such as licensing requirements and local content rules, to facilitate American investment. These steps were intended to address U.S. concerns over barriers to industrial, agricultural, and digital trade.

U.S. Trade Representative Jamieson Greer has raised alarms that Indonesia is reneging on several pledges, according to officials familiar with the discussions who spoke on condition of anonymity. They cited delays...