Indonesia and Peru took a significant step toward deeper economic collaboration as the Indonesia–Peru Comprehensive Economic Partnership Agreement (IP-CEPA) was formally signed during a state visit by Peruvian President Dina Ercilia Boluarte Zegarra to Jakarta on August 11, 2025. President Prabowo Subianto welcomed President Boluarte at Merdeka Palace, marking a milestone in bilateral relations.
A full ceremonial welcome opened the historic occasion. President Prabowo greeted his counterpart on the palace steps, followed by an inspection of the guard of honor and the introduction of both nations’ delegations. The meeting comes after Prabowo’s earlier visit to Peru, which accelerated the completion of IP-CEPA negotiations. “The completion of the negotiations for the Indonesia–Peru Comprehensive Economic Partnership Agreement is a historic milestone for the two countries,” President Prabowo stated.
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Leaders Unite for Stronger Bilateral Relations
The state visit reflected both nations’ commitment to building a strategic partnership. Diplomatic exchanges have intensified in recent years, laying the groundwork for closer ties. President Boluarte emphasized the mutual benefits of the agreement, noting, “I am confident that the signing of this agreement will be a catalyst for enhancing cooperation in trade, investment, and other areas of mutual interest.”
This renewed engagement signals Indonesia’s growing interest in Latin America, where Peru serves as a key gateway. Both leaders underscored the need for continued dialogue and active collaboration to realize the full potential of the relationship.
IP-CEPA Signing Ceremony Marks Economic Milestone
The signing of IP-CEPA was the focal point of the visit. The agreement aims to remove trade barriers, expand market access, and encourage greater investment flows. It also provides a structured framework for cooperation in sectors such as agriculture, manufacturing, and services.
President Prabowo highlighted the significance of the pact: “This agreement opens up new opportunities for our businesses and strengthens the economic foundation between our two countries.” The deal, completed earlier in 2025, aligns with Indonesia’s broader strategy to diversify trade partners beyond Asia and strengthen its position in the global market.
Indonesia-Peru Trade Deal Expected to Boost Key Exports
In 2024, Indonesia exported a wide range of goods to Peru. Under IP-CEPA, these exports are expected to increase as tariffs fall and trade procedures improve:
- Footwear (US$50.4 million)
- Animal and vegetable oils (US$33.39 million)
- Paper products (US$18.9 million)
- Electrical and electronic equipment
- Textiles and textile articles
- Rubber and rubber products
- Organic chemicals
- Plastics
- Children’s toys
- Soap and cleaning products
Peru is also expected to expand its export portfolio to Indonesia, with both sides seeking more balanced trade flows.
Peru as a Growing Market for Indonesian Products
Peru’s market offers strong growth potential for Indonesian exporters due to several key factors:
- A population of 33.8 million with increasing purchasing power.
- A GDP per capita of US$7,906.6, indicating a growing middle class.
- Rising demand for manufactured and consumer goods.
- Strategic trade links to other Latin American markets.
These conditions make Peru an attractive destination for Indonesian goods beyond the current top export categories.
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Strengthening Ties Beyond Trade
While trade remains central, both nations are exploring broader cooperation. Cultural exchanges, tourism promotion, and joint initiatives in education and technology are on the agenda. President Boluarte expressed optimism about the relationship, stating, “Peru and Indonesia share a vision of mutual growth and prosperity. This agreement is only the beginning of a stronger partnership.”
A New Chapter in Indonesia–Peru Relations
The IP-CEPA signing ceremony has set the stage for a dynamic new phase in Indonesia–Peru relations. Beyond the economic benefits, the pact symbolizes a shared commitment to long-term collaboration. As both nations work to implement the agreement, they aim to foster sustainable growth, deepen political trust, and strengthen cultural ties, creating a model for future partnerships in Latin America.
Source: ekonomi.bisnis.com
Image: ANTARA FOTO/Galih Pradipta
