Indonesia, Peru seal trade deal in historic leaders meeting

Indonesia and Peru Sign CEPA to Expand Market Access

Context and Background

On Monday in Jakarta, President Prabowo Subianto and visiting Peruvian President Dina Boluarte formalized a Comprehensive Economic Partnership Agreement (CEPA). The deal was reached in just 14 months, accelerating a partnership that would otherwise have taken years.

Key Provisions of the CEPA

• Market access for Indonesian goods in Central and South America.
• Joint cooperation in defense, narcotics, food security, energy, fisheries, and mining.
• Broader integration of trade and investment between the two economies.

Trade Statistics

• Indonesia’s exports to Peru in 2024: $329.4 million.
• Peru’s exports to Indonesia: $149.6 million.

Political Implications

The agreement follows the U.S. tariff rate of 19 percent imposed on Indonesian imports by President Trump. Boluarte’s reciprocal visit follows Prabowo’s November trip to the APEC Summit, reinforcing a renewed dialogue between Southeast Asia and South America.

Domestic Reactions

• Boluarte faces protests over gang violence and holds an approval rating near 2 percent.
• Indonesia’s trade minister anticipates incentives for Indonesian goods in Latin American markets.

Bilateral Visits

Boluarte entered Indonesia’s presidential palace greeted by a marching band and national anthems, symbolizing ceremonial hospitality. The CEPA signing was witnessed by both leaders, underscoring the seriousness of the partnership.