After signing the agreement at the Merdeka Palace on Monday, Santoso said the leading commodities in question include textiles and textile products, motor vehicles, footwear, and refrigerators.
"These agreements would be carried out in stages. CEPA is the framework, and additional provisions (for commodities) will be implemented in stages," he stated.
Santoso explained that the agreement has the potential to increase trade transactions between the two countries, from last year's US$480 million, with Indonesia experiencing a surplus of USD181 million.
While the agreement is bilateral, Peru has the potential to serve as a hub for Indonesian products in the Latin American region, given that Indonesia also has a trade agreement with Chile, he said.
Santoso stated that the ratification process is underway and is expected to be completed in less than 12 months.
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"Just from January to June, our trade value has increased by 35 percent," he added.
According to the Ministry of Trade's page, the Indonesia-Peru CEPA agreement has the potential to increase Indonesia's export value by USD46.52 billion.
Indonesia will gain benefits from the elimination, reduction, and gradual reduction of import duties by 90.68 percent of Peru's total tariff lines, with 87 percent of tariffs being reduced to zero percent.
Other benefits for Indonesia include expanded market access for Indonesian products in Peru and the Latin American region, the development of the fisheries and mining sectors, and the complementary nature of products traded between Indonesia and Peru.
Meanwhile, Peruvian President Dina Ercilia Boluarte Zegarra expressed her confidence that the agreement would strengthen economic, trade, and investment cooperation between Indonesia and Peru.
The CEPA is proof of our governments' determination to promote free trade and strengthen our economies. The finalization of this agreement also aims to benefit entrepreneurs, consumers, and the people of both countries, she noted at the joint statement with President Prabowo Subianto in Jakarta on Monday.
She further explained that Peru is a major exporter of fresh fruits and superfoods worldwide, including quinoa, chia seeds, matcha powder, grapes, and blueberries.
In the future, Peruvian blueberries will also enter the Indonesian market, she said.
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Translator: Andi Firdaus, Resinta Sulistiyandari
Editor: Rahmad Nasution
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