Indonesia and Peru have officially signed the Indonesia–Peru Comprehensive Economic Partnership Agreement (IP-CEPA), marking a milestone in trade and investment relations between the two countries. 

The signing took place at the Presidential Palace in Jakarta, witnessed by President of Peru Dina Ercilia Boluarte Zegarra and Indonesia’s Minister of Trade Budi Santoso. The agreement is expected to open new opportunities for goods exchange, investment cooperation, and electronic commerce. 

President Boluarte said the deal reflects both governments’ commitment to promoting freer trade and deeper bilateral cooperation. She noted that the implementation of IP-CEPA will facilitate the entry of Peruvian products into Indonesia and strengthen the foundation for broader economic collaboration. 

“I would like to thank the Indonesian government and the relevant health authorities for making this possible. We hope this agreement will advance technical dialogue between our two countries to ease product entry and strengthen trade ties,” Boluarte said. 

She added that Peru could serve as an attractive investment destination for Indonesian businesses, citing the country’s steady average economic growth of 4.4% since 2005, single-digit inflation, stable exchange rates, and controlled interest rates. 

Boluarte also outlined investment opportunities in Peru, including the Ancon Industrial Area, Jorge Chavez International Airport City, and Chancay Port—three areas designated as special economic zones. Peru aims to position itself as a major logistics hub on the Pacific coast of South America, strengthening its role in Asia-Pacific trade integration. 

Minister Santoso emphasized that Peru holds strategic potential as a hub for Indonesian products entering Latin America. He noted that while the primary goal of IP-CEPA is to expand market penetration in Peru, the agreement could also complement Indonesia’s existing trade framework with Chile under the Indonesia–Chile CEPA. 

The IP-CEPA is expected to come into force following ratification by the Indonesian Parliament, targeted for completion by August 2026. Santoso expressed optimism that its implementation could boost Indonesia–Peru trade by over 30%. 

Trade between the two countries grew by approximately 35% year-on-year in 2024, reaching USD 480 million (around IDR 7.82 trillion). Indonesia recorded a trade surplus of USD 181 million (nearly IDR 3 trillion) in the same period. 

This article is published in partnership with Katadata 

Original article here