Indonesia and Peru formalized a Comprehensive Economic Partnership Agreement (CEPA) on Monday to boost bilateral trade and investment ties. The signing followed a meeting in Jakarta between Indonesian President Prabowo Subianto and Peruvian President Dina Boluarte, who’s the first Peruvian head to visit Indonesia.
The CEPA, which currently applies only to goods, will see Indonesia and Peru eliminate nearly all tariffs, with many dropping to 0% through phased implementation.
“This agreement will expand market access and boost trade activity between the two countries,” Prabowo said. “Normally, this agreement would have taken years, but Indonesia and Peru managed to finalize this agreement within 14 months,” he added.
The meeting took place just four days after U.S. President Donald Trump raised import tariffs on multiple countries, including a new 19% rate on Indonesian goods. Peruvian imports continue to face the baseline 10% rate introduced in April. Dina Boluarte arrived in Jakarta on Sunday, following an invitation from Prabowo during their meeting at the APEC Summit in Peru in November 2024.
Djatmiko Bris Witjaksono, director-general at Indonesia’s Trade Ministry, stated that Peru will reduce or remove tariffs on over 90% of Indonesian goods, while Jakarta will offer zero or reduced tariffs on 92% of Peruvian goods, paving the way for increased imports of Peruvian fruits into the country.
Other major Indonesian exports such as vehicles, footwear, and freezers are set to benefit from improved market access under the agreement. Both countries also committed to enhancing collaboration in key sectors, including defense, counter-narcotics, food security, energy, fisheries, and mining.
According to data from the Indonesian trade ministry, Indonesia exported goods worth $329.4 million to Peru in 2024, while Peru’s exports to Indonesia totaled $149.6 million.
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