The Monumental Trade Agreement Between Peru and Indonesia!
Peru and Indonesia took a historic step in their bilateral relations on Monday by signing a Comprehensive Economic Partnership Agreement (CEPA), considered by both governments as the most important in their joint commercial history. The ceremony took place at the Merdeka Palace in Jakarta, amidst an international climate marked by the increase of tariffs imposed by the United States.
A strategic pact in times of economic uncertainty
Four days earlier, US President Donald Trump raised import tariffs on dozens of countries: Indonesia now faces a 19% tariff, while Peruvian exports maintain the 10% base rate set in April. President Dina Boluarte arrived in Jakarta on Sunday afternoon, responding to an invitation from Indonesian President Prabowo Subianto, with whom she had coincided at the APEC summit held in Peru in November 2024.
In a joint appearance, Boluarte emphasized that the CEPA symbolizes the determination of Lima and Jakarta to promote and strengthen their economies. She highlighted that the agreement will serve as a basis for future agreements and will expand the exchange of goods, while Subianto praised the speed with which it was concluded: only 14 months of negotiations, compared to the years usually required for similar treaties. Although not all details have been revealed, the Indonesian president described the pact as the “most significant commercial cooperation agreement” between the two nations, coinciding with the 50th anniversary of their diplomatic relations.
New opportunities for key goods and sectors
The CEPA opens the door to closer cooperation in strategic areas such as food, mining, energy, fisheries, and defense. In the immediate future, it will allow Peruvian blueberries to join quinoa, which is already marketed in Indonesia, thus expanding the range of Andean products in Southeast Asia. On the other hand, Indonesian Trade Minister Budi Santoso stated that this agreement is a “gateway” for Indonesian goods and services to access markets in Central and South America. He also expressed his expectation that it will help strengthen Indonesia’s commercial presence in the region.
Beyond trade
During the visit, Boluarte and Subianto also oversaw the signing of a cooperation agreement to combat terrorism and illegal trade. Meanwhile, Indonesia seeks to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a bloc to which Peru already belongs, with the intention of boosting its export projection. Boluarte defined Indonesia as a key partner for Peru in Southeast Asia and considered her visit to be ideal to reaffirm commitments regarding free trade, food security, South-South cooperation, and sustainable development.
