Jakarta, Indonesia Sentinel — Indonesia and Peru have signed the Indonesia–Peru Comprehensive Economic Partnership Agreement (IP-CEPA), granting tariff-free access for over 7.000 products or 90% of Indonesian goods exported to the South American nation.
The trade deal was formalized during the state visit of Peruvian President Dina Ercilia Boluarte Zegarra to Jakarta on Monday (August 11). Indonesian President Prabowo Subianto hailed the agreement as a milestone that will expand market access and strengthen bilateral trade ties.
“I warmly welcome the signing of the Indonesia–Peru CEPA. This agreement will broaden market opportunities and boost trade activities between our two countries,” Prabowo said at a joint press conference with Boluarte.
President Boluarte expressed similar optimism, saying the pact would bring tangible benefits to both nations. “Once in effect, CEPA will strengthen our trade relationship, promote the exchange of goods, and serve as a foundation for future agreements in investment, services, e-commerce, and more. CEPA is proof of our governments’ commitment to freer trade and stronger economies,” she said.
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Indonesia’s Ministry of Trade said the agreement will eliminate import tariffs on 7,257 tariff posts, equivalent to 90% of Indonesian exports to Peru. These include automobiles, footwear, textiles, palm oil and its derivatives, manufactured goods, furniture, printing machinery, and paper products.
Djatmiko Bris Witjaksono, Director General of International Trade Negotiations at the ministry, said the tariff cuts will be phased in over time. “Some provisions will enter into force immediately, while others will take effect in the second or third year,” he told reporters Tuesday.
Following the implementation of the pact, the ministry is targeting export increase to reach $5 billion, or roughly 81 trillion rupiah.
Alongside the CEPA, both nations signed a joint declaration marking the 50th anniversary of diplomatic ties, pledging to deepen bilateral relations and explore new areas of cooperation.
Both country also signed another agreement, an MoU between Indonesia’s National Narcotics Agency and Peru’s National Commission for Development and Life without Drugs focusing on technical cooperation to combat illicit drug production, trafficking, and related activities.
(Raidi/Agung)
