US trade deal with Indonesia at risk of collapse, US official says

WASHINGTON, Dec 9 (Reuters) - A U.S. trade agreement reached with Indonesia in July is at risk of collapsing because Jakarta has backtracked on several commitments it made as part of the deal, a U.S. official said on Tuesday.

"They're reneging on what we agreed to in July," said the official, who spoke on condition of anonymity, giving no details about which specific commitments Indonesia was now questioning.

Asked about the comments, Indonesian officials said on Wednesday that the talks between two sides are still ongoing, with no specific issues arising during negotiations.

"Dynamics in the negotiation process are normal. The Indonesian government hopes that an agreement can be reached soon that is beneficial to both parties," said Haryo Limanseto, a spokesperson for Indonesia's Ministry for Economic Affairs.

The ministry is headed by Minister Airlangga Hartarto, the chief negotiator for the tariff talks between Indonesia and U.S.

Earlier on Wednesday, an Indonesian government source said that harmonisation of language was required for the agreement.

The two countries in July said Indonesia agreed to eliminate tariffs on more than 99% of U.S. goods and scrap all non-tariff barriers facing American firms, while the U.S. will drop threatened tariffs on Indonesian products to 19% from 32%.