Indonesia and Peru have signed a landmark Comprehensive Economic Partnership Agreement (CEPA) aimed at enhancing trade, investment, and cooperation across multiple sectors, marking a significant milestone in the two countries’ 50 years of diplomatic relations. The agreement was finalized during Peruvian President Dina Boluarte’s two-day state visit to Jakarta, where she held talks with Indonesian President Prabowo Subianto. President Prabowo hailed the deal as “the most significant trade cooperation agreement in the history of our bilateral relations,” underlining its potential to expand market access and strengthen strategic ties.
The CEPA, concluded in just 14 months of negotiations, is designed to reduce trade barriers, encourage greater flows of goods and services, and promote collaboration in sectors such as food security, fisheries, mining, energy transition, and defense. Indonesian Trade Minister Budi Santoso stated that the agreement would not only serve as a platform to increase exports but also act as a gateway for Indonesian products to reach broader markets across Central and South America.
For Peru, the agreement represents an opportunity to expand agricultural exports, particularly fresh fruit. President Boluarte emphasized Peru’s position as one of the world’s leading exporters of blueberries and noted that Indonesian consumers would soon have wider access to these products. She also stressed shared commitments between the two nations in upholding free trade, international law, South-South cooperation, and sustainable development.
Trade between Indonesia and Peru has grown steadily in recent years. In 2024, Indonesia exported goods worth US$331.2 million to Peru, with key items including vehicles, biodiesel, and footwear. Conversely, Peru exported approximately US$149.6 million worth of goods to Indonesia, primarily cocoa beans and grapes. Officials from both governments expect CEPA to accelerate these trade flows and create new opportunities for businesses in both countries.
The scope of bilateral cooperation was further widened with the signing of an anti-narcotics agreement, signaling a commitment to address transnational security challenges alongside economic ties. During her visit, President Boluarte also met with Indonesia’s House Speaker Puan Maharani and ASEAN Secretary-General Kao Kim Hourn, reaffirming Peru’s intention to deepen relations with both Indonesia and the broader Southeast Asian region.
Observers view the CEPA as a strategic step for Indonesia, aligning with its ambition to expand economic presence in Latin America and to strengthen eligibility for membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade pact in which Peru is already a participant. By leveraging this new agreement, Indonesia aims to enhance its role as a global trading partner while ensuring economic resilience amid global uncertainties.
The Indonesia–Peru CEPA thus represents not only an economic milestone but also a diplomatic achievement, setting the stage for deeper cooperation between the two countries over the coming decades.
August 11, 2025, The Jakarta Post
(https://www.thejakartapost.com/business/2025/08/11/indonesia-peru-strike-trade-agreement-as-leaders-meet.html)