Indonesia is resisting U.S. trade deal demands that it fears would restrain its independence, particularly in critical minerals and energy that risk its relations with China and Russia, according to people familiar with the situation.
Since the U.S. and Indonesia reached a framework in July that set a 19% tariff rate, the administration of U.S. President Donald Trump has pushed Jakarta to agree to terms that would potentially restrain its relationship with China, one of its biggest foreign investors, according to the people, who asked not be identified as the talks aren¡¯t public.
The impasse has sparked frictions with Washington and risks upending that agreement. The Trump administration has accused Indonesia of backtracking on its earlier commitments and sees the deal at risk of collapsing, the Financial Times and Reuters reported this week, citing U.S. officials they didn¡¯t identify.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.