IP-CEPA to boost Indonesia's exports to Peru to US$745 mln: Minister

hartono · Jul 17, 2026

IP-CEPA to boost Indonesia's exports to Peru to US$745 mln: Minister

Indonesian Trade Minister Budi Santoso attends a hearing with Commission VI of the House of Representatives in Jakarta on Thursday (July 16, 2026). ANTARA/HO-Trade Ministry.

Jakarta (ANTARA) - Indonesian Trade Minister Budi Santoso stated that the ratification of the Indonesia-Peru Comprehensive Economic Partnership Agreement (IP-CEPA) could help increase Indonesia’s exports to Peru to US$745 million by 2045.

“Indonesian products that will get the most benefit from IP-CEPA include vehicles and spare parts, vegetable oils and fats, leather goods, textiles, and apparel,” he remarked in a statement released on Friday.

He added that the agreement opens avenues for micro, small, and medium-sized enterprises (MSMEs) to penetrate the Latin American market, particularly in sectors such as leather goods, loose furniture, packaging, automotive parts, and processed foods.

Under the agreement, Indonesia will enjoy preferential tariffs for 7,257 product categories, representing 90.68 percent of Peru's total tariff lines. In return, Peru will receive preferential tariffs for 10,531 categories, or 92.26 percent of Indonesia's total tariff lines.

Santoso emphasized that the implementation of the trade pact is expected to improve public welfare, drive economic growth, and create a more conducive investment climate.

Given the pact's importance, he noted that the government recommends ratifying the agreement through a presidential regulation.

"The accelerated ratification and implementation of IP-CEPA are crucial so that its potential economic benefits can be realized immediately," he said.

The minister emphasized that Peru serves as a strategic gateway for Indonesian products entering Latin American markets.

It also provides a stepping stone to the Pacific Alliance and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) markets, which boast a combined population of 649 million.

IP-CEPA negotiations adopted an incremental approach. The first phase, focusing on trade in goods, commenced in May 2024 and concluded with the signing of the agreement on August 11, 2025. The next phase will cover trade in services and investment.

Meanwhile, bilateral trade between the two nations continues to show a positive trend. From January to May 2026, Indonesia's exports to Peru reached US$225.77 million, while imports stood at US$38.24 million, resulting in a trade surplus of US$187.53 million for Indonesia.

In 2025, Indonesia's total exports to Peru amounted to US$462.97 million against US$104.44 million in imports, posting a surplus of US$358.54 million.