In a significant step toward deepening economic cooperation, Peruvian President Dina Boluarte and Indonesian President Prabowo Subianto met at the Merdeka Palace in Jakarta on Monday to finalize the Indonesia-Peru Comprehensive Economic Partnership Agreement (IP-CEPA). The signing, witnessed by both leaders, marks a milestone in bilateral relations as the two nations celebrate 50 years of diplomatic ties, aiming to counter global trade challenges and expand market access.

The two-day state visit, which began with Boluarte’s arrival in Jakarta on August 10, follows their discussions at the APEC Summit in Lima in November 2024. The IP-CEPA, finalized after negotiations began in May 2024, is poised to enhance trade and investment, with Indonesia targeting Central and South American markets as a gateway through Peru. “This agreement is a strategic move to strengthen Indonesia’s trade presence in Latin America,” said Indonesia’s Trade Minister Budi Santoso, emphasizing its potential to boost exports like vehicles, footwear, textiles, and biodiesel.

Bilateral trade, though robust, saw a decline from USD 554.2 million in 2022 to USD 444.4 million in 2023, with Indonesia maintaining a USD 290.4 million surplus driven by key exports. In the first half of 2024, trade reached USD 196 million, with Indonesia’s exports at USD 153.8 million, including motor vehicles and paper, and imports from Peru, such as cacao beans and grapes, at USD 42.2 million. The CEPA aims to reverse this dip by reducing tariffs and non-tariff barriers, facilitating smoother market access.

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The agreement comes amid global trade tensions, notably after U.S. President Donald Trump imposed a 19% import tax on Indonesia and a 10% baseline rate on Peru in April 2025, prompting both nations to seek alternative markets. Indonesia’s pursuit of membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes Peru, further aligns with these efforts.

The signing, completed in just 14 months, reflects both countries’ commitment to rapid, mutually beneficial cooperation. President Prabowo highlighted the deal’s role in expanding trade across sectors, stating, “This partnership will elevate our strategic ties in the Pacific and beyond.” Accompanying ministers, including Indonesia’s Foreign Minister Sugiono and Peru’s Minister of Foreign Trade and Tourism, also explored collaboration in agriculture and drug eradication, signaling a broader partnership.

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