On August 12, 2025, the Ministry of Trade of Indonesia announced that under the newly signed Comprehensive Economic Partnership Agreement between Indonesia and Peru (IP-CEPA), Peru will impose zero tariffs on 90.68% of Indonesian goods (covering 7,257 tariff lines), marking a crucial step for Indonesia to expand its market in Latin America.
Jatmiko Bris Vijaksono, the director General of International Trade Negotiations of Indonesia’s Ministry of Trade, disclosed at the IP-CEPA press conference held in Jakarta that the tariff exemption will be implemented in phases. The first batch of key goods to benefit include automobiles, footwear, textiles, home appliances, palm oil and its derivatives, etc.
He said, “Almost all goods within the agreement will eventually enjoy zero-tariff treatment.” Meanwhile, as a reciprocal arrangement, Indonesia will also lift tariffs on about 85% of Peruvian goods.
Indonesian Trade Minister Budi Santoso pointed out that this agreement is an important outcome of Indonesia’s strategy to diversify its export markets, opening the door for Indonesia’s advantageous industries to enter South America and even broader international markets. Economist Peter Abdullah also believes that this move is a “right step” in helping to build a healthier trade structure and reduce reliance on a few traditional trading partners.
Data shows that the total bilateral trade volume between Indonesia and Peru in 2024 is approximately 480 million US dollars, with Indonesia enjoying a trade surplus. The Ministry of Trade of Indonesia believes that under the impetus of IP-CEPA, the trade volume between the two countries can increase significantly to 5 billion US dollars in the coming years.
The agreement was officially signed at the Independence Palace in Jakarta on August 11, 2025.
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