U.S. warns trade deal with Indonesia at risk of collapse

The U.S. warns its trade deal with Indonesia is at risk of collapse, accusing Jakarta of backsliding on several commitments it made.

Transcript

00:00Washington is warning that its trade deal with Indonesia may be at risk of collapse,

00:05accusing Jakarta of backtracking on key terms of the agreement.

00:09U.S. Trade Representative Jameson Greer reportedly believes Indonesia is backsliding

00:14on several commitments it had made.

00:17This includes removing non-tariff barriers on U.S. industrial and agricultural exports,

00:23as well as on its pledges related to digital trade.

00:26U.S. President Donald Trump announced the deal in mid-July,

00:32lowering a proposed reciprocal tariff rate on Indonesia to 19%,

00:37down from the 32% threatened in a letter sent earlier that month.

00:42According to Trump, Indonesia had committed to buying 15 billion U.S. dollars in American energy,

00:484.5 billion dollars in agricultural products, and 50 Boeing jets.

00:53It is not the first instance of friction between Washington and Jakarta over trade talks.

01:00In November, the Financial Times reported that Indonesia had rejected a U.S. poison pill clause,

01:07a provision accepted by some Southeast Asian countries, including Malaysia,

01:11which would allow Washington to revoke a trade deal

01:14if a partner country entered into any agreement deemed damaging to U.S. interests.