August 13, 2025 | 10:27 am
Indonesian Trade Minister Budi Santoso aims to double Indonesia's trade with Peru from the current total through the Indonesia-Peru Comprehensive Economic Agreement (IP CEPA). He mentioned that Indonesia's current trade value with Peru is around US$ 480 million or approximately Rp 7.81 trillion with an assumed exchange rate of Rp 16,290 per US dollar.
"Currently, the total trade is US$ 480 million. Well, after the implementation of CEPA, the total trade should at least double," said Budi at Balai Kartini, Jakarta, on Tuesday, August 12, 2025.
He explained that Indonesia's trade with Peru is not as large as with the European Union. Nonetheless, Indonesia's trade balance recorded a surplus of US$ 181 million.
With the Indonesia-Peru CEPA agreement, Budi believes that bilateral trade cooperation will be easier. One aspect he mentioned is the opportunity for textile exports, which are projected to increase. "Well, the access for our textiles including footwear to Peru, is significant, and we will have much easier access to that market. This is one of the ways to promote our market access abroad," he said.
Previously, the Indonesian government and Peru signed the Indonesia-Peru CEPA to expand market access to Latin America. Negotiations to reach this trade agreement began in 2023, involving delegations from both sides.
Access to the Peruvian market is considered a gateway for domestic products to reach the Latin American market widely. This situation is also supported by a similar cooperation that has been established between Indonesia and Chile.
"This is the second CEPA, after the agreement between Indonesia and Chile, which we have been implementing for quite some time," said the Director General of International Trade Negotiations, Djatmiko Bris Witjaksono, during a press conference at the Ministry of Trade Auditorium, Jakarta, on Tuesday, August 12, 2025.
According to Djatmiko, the agreement between Indonesia and Peru can support easier import and export access for trading products from both countries. However, the current nature of the cooperation has not yet extended to investment or capital investment. "So, we agreed to first negotiate the trade of goods, and later on the investment," said Djatmiko.
Politically and economically, Djatmiko stated that Indonesia's relationship with Peru is in a very good condition. He projected that the CEPA between Indonesia and Peru will be able to provide a more favorable design for the export and import climate of products to the country.
Alif Ilham Fajriadi contributed to the writing of this article.
Editor's Choice: Vehicles and Palm Oil Lead Indonesia's Export Commodities to Peru
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