The ministry’s director general of international trade negotiations, Djatmiko Bris Witjaksono, said that the agreement will benefit both countries in terms of exports and increase competitiveness in the region.
“We are targeting US$5 billion in the next few years. Hopefully, the result can be realized beyond the target,” he added at a press conference on Tuesday.
He informed that the total trade between Indonesia and Peru was recorded at US$480.7 million in 2024. While still relatively small, Indonesia’s trade with Peru showed average annual growth of 15.08 percent in the period from 2020 to 2024.
Indonesia’s exports to Peru in 2024 were recorded at US$331.2 million, while imports stood at US$149.6 million.
Indonesia’s leading export products to Peru include motorcycles, cars, and other vehicles, footwear, palm oil and its derivatives, and refrigerators.
Meanwhile, its imports from the South American nation include cocoa beans, coal briquettes, solid fuels, fertilizers, wine, and raw zinc, with import growth averaging 13.5 percent per year.
Under the agreement, Indonesia will get preferential rates for more than 90 percent of the goods it exports to Peru, Witjaksono informed.
“All these commodities have received promising market access references. So, the tariff is almost zero. Later, we will receive a commitment for a zero percent tariff,” he said.
Minister of Trade, Budi Santoso, and Peruvian Minister of Foreign Trade and Tourism, Ursula Desilu Leon Chempen, signed the Indonesia-Peru CEPA at Merdeka Palace in Jakarta on Monday.
Santoso said that the agreement will expand market access for several leading commodities, and thereby benefit Indonesia.
In addition, Peruvian President Dina Ercilia Boluarte Zegarra welcomed the Indonesia-Peru CEPA, saying it could simplify the entry of Peruvian products into Indonesia, including blueberries, pomegranates, quinoa, and chia seeds.
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Translator: Maria Cicilia G P, Resinta Sulistiyandari
Editor: Primayanti
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