Indonesia and Peru solidified a major trade agreement on Monday during Peruvian President Dina Boluarte's state visit to Jakarta, marking a strategic push by Southeast Asia's largest economy to strengthen ties with South America. The Comprehensive Economic Partnership Agreement (CEPA), signed at a ceremony featuring marching bands and national anthems at Indonesia's presidential palace, aims to unlock new opportunities in defense, energy, fisheries, and mining sectors.
Indonesian President Prabowo Subianto highlighted the pact's significance, stating it would 'expand market access and boost trade activity' between the two nations. The deal was finalized in just 14 months, a notable acceleration compared to typical trade negotiations. Bilateral trade in 2024 saw Indonesia export $329.4 million worth of goods to Peru, while importing $149.6 million from the Andean nation, according to Indonesian trade data.
The agreement follows U.S. tariffs on Indonesian imports under a new pact, adding urgency to Jakarta's efforts to diversify trade partnerships. Indonesian officials emphasized that CEPA will serve as a gateway for Indonesian products to enter Central and South American markets. Boluarte's visit reciprocated Prabowo's trip to Peru in November 2023 for the APEC Summit, underscoring growing cross-regional collaboration.
