Indonesia-U.S. trade deal talks hit snag

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Indonesia is facing U.S. pressure on its July trade deal (Tariff 191 TP3T), with the U.S. demanding new clauses that could restrict Indonesia's cooperation with China, its largest source of foreign investment, sparking friction between the two sides.

According to Bloomberg, the U.S. has accused Indonesia ofBreach of initial commitmentThe new requirements include that the U.S. can cancel existing agreements if Indonesia signs agreements that harm U.S. interests;Key mineral development(China dominates the supply chain) and the need to exclude third parties from oil and gas investment cooperation (affecting Indonesia's relations with Russia and China).

Sources familiar with the matter said the U.S. side in the negotiationsPressuring Indonesia to Alienate China.. The Office of the U.S. Trade Representative emphasized that the U.S., Malaysia and Cambodia had signed an agreement at the ASEAN meeting in October and hoped that Indonesia would follow suit. A spokesman for Indonesia's Ministry of Economic Integration responded that there was no specific dispute in the negotiations and that the dynamics were normal, and that the government was still interested in reaching an agreement."Mutually Beneficial Agreements"Stay optimistic.

In the initial agreement, Indonesia agreed to purchase$19 billion in U.S. products(including 50 Boeing airplanes) and elimination of import tariffs, but relations with China remain key.Since 2020 China has invested more than$15 billion. After that Indonesia's Economy Minister will hold an online meeting with the US Trade Representative to discuss the matter.

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