Leaders of Indonesia and Peru hold talks on trade and economic ties

Key Points

• Peruvian President Dina Boluarte and Indonesian President Prabowo Subianto met to enhance economic ties and explore new markets amid rising trade barriers.
• During the visit, the leaders are expected to sign a Comprehensive Economic Partnership Agreement (CEPA) which could significantly boost bilateral trade.
• In 2023, Indonesia reported a trade surplus with Peru with exports primarily in vehicles, footwear, and biodiesel, despite a decline in total trade from $554.2 million to $444.4 million from 2022 to 2023.
• Indonesia aims to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, of which Peru is a member, to enhance its export growth.

JAKARTA, Indonesia (AP) — Peruvian President Dina Boluarte met her Indonesian counterpart Prabowo Subianto on Monday during a visit aimed at strengthening economic ties as the two countries look to expand into new markets to overcome geopolitical challenges and rising trade barriers.

The talks came just four days after U.S. President Donald Trump began imposing higher import taxes on dozens of countries on Thursday, including a 19% rate on Indonesia. Imports from Peru are paying the 10% baseline rate Trump set in April.

Boluarte arrived in Indonesia’s capital, Jakarta, on Sunday afternoon, following an invitation Subianto extended when the two leaders met at the APEC Summit in Peru in November 2024.

The two-day visit is aimed at deepening Peru’s ties with Indonesia, Southeast Asia’s largest economy, after the two nations concluded negotiations which began in May 2024 on a Comprehensive Economic Partnership Agreement or CEPA.

Subianto hosted Boluarte with a ceremony at Merdeka palace before the two leaders held a closed-door bilateral meeting.

“The CEPA is a testament to the determination of our governments to promote freer trade and strengthen our economies,” Boluarte said in a joint news conference with Subianto after the meeting, adding that the deal can promote the exchange of goods and lay the groundwork for future agreements.

Subianto praised the seriousness of both governments in reaching an agreement in just 14 months, while similar trade deals with other countries take years.

“This agreement will expand market access and increase trade activities between our two countries,” Subianto said. No details about the agreement have been provided, but Subianto described the pact as “the most significant trade cooperation agreement” in the history of the two countries.

He said the signing also coincided with the 50th anniversary of Indonesia-Peru diplomatic ties.

Subianto said Indonesia and Peru also agreed to cooperate in the fields of food, mining and energy consumption, as well as fisheries and defense. He conveyed Indonesia’s readiness to support the partnership between the Association of Southeast Asia Nations and Peru.

Boluarte said Indonesia has become a key partner for Peru in Southeast Asia, and said her visit to the fourth most populous country in the world was an excellent moment to reaffirm their commitment to full observance of international law, free trade, South-South cooperation, food security and sustainable development.

While Indonesian consumers are already enjoying Peruvian quinoa, “I am pleased to announce the access of Peruvian blueberries to the Indonesian market,” Boluarte said.

“The CEPA deal with Peru is a potential gateway for Indonesian goods and services to enter markets in Central and South America,” said Indonesia's trade minister, Budi Santoso, “We hope the deal can strengthen Indonesia’s trade presence in the region.”

His ministry's data showed the country’s total trade with Peru went down from $554.2 million in 2022 to $444.4 million the following year, while Indonesia enjoyed a $290.4 million trade surplus in 2023, driven by major exports including vehicles, footwear and biodiesel.

The two leaders also oversaw the signing of a cooperation agreement on eradicating narcotics and illegal trafficking.

During her visit on Monday, Boluarte also met with Indonesian House Speaker Puan Maharani and ASEAN’s Secretary-General Kao Kim Hourn. She shared Peru’s commitment to strengthening relations, cooperation, and partnership with ASEAN member countries.

Indonesia is currently seeking membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which Peru is part of, to boost export growth.