Indonesia, Peru Sign Landmark Trade Deal to Deepen Economic Ties

Indonesia and Peru have officially signed a trade agreement aimed at strengthening economic relations, as the presidents of both nations met in Jakarta on Monday. The deal marks a strategic move by Indonesia, Southeast Asia’s largest economy, to expand its presence in South American markets.

The agreement, known as the Comprehensive Economic Partnership Agreement (CEPA), was finalized in just 14 months—an unusually swift timeline for such international accords. Indonesian President Prabowo Subianto, who welcomed Peruvian President Dina Boluarte at a ceremonial event with marching bands and national anthems in the capital, highlighted the deal’s significance.

“This agreement will broaden market access and enhance trade activities between Indonesia and Peru,” Prabowo said. He noted that the partnership will also cover cooperation in areas such as defense, narcotics control, food security, energy, fisheries, and mining, although specific details were not disclosed.

According to Indonesia’s trade ministry, Indonesian exports to Peru reached $329.4 million in 2024, while imports from Peru stood at $149.6 million.

The deal follows Prabowo’s visit to Lima in November during the APEC Summit and was reciprocated by Boluarte’s state visit to Jakarta. Prior to her visit, Indonesia’s trade minister emphasized that the agreement would pave the way for Indonesian products to gain better access to Central and South American markets.

President Boluarte, 63, remains a controversial figure in her home country, where she faces criticism over growing gang violence and a plunging approval rating that dropped to just 2 percent in May.