Indonesia, Peru strike trade agreement as leaders meet
Source: AFP
Indonesia and Peru sealed a trade agreement Monday as their leaders met in Jakarta, with Southeast Asia's biggest economy looking to make inroads into South American markets.
The agreement comes after US President Donald Trump recently imposed a tariff rate of 19 percent on imports from Indonesia under a new pact.
Peruvian President Dina Boluarte was greeted by a marching band and national anthems at a ceremony at the presidential palace in the Indonesian capital before talks.
Indonesian President Prabowo Subianto said the leaders then witnessed the signing of the trade pact, dubbed a Comprehensive Economic Partnership Agreement (CEPA), which will deepen ties between the two nations after he visited Lima last year.
"This agreement will expand market access and boost trade activity between the two countries," Prabowo said after their meeting.
"Normally, this agreement would have taken years, but Indonesia and Peru managed to finalise this agreement within 14 months."
They agreed to boost cooperation in fields including defence, narcotics, food security, energy, fisheries and mining, he said, without providing details.
In 2024 Indonesian exports to Peru were worth $329.4 million while Peru's exports to Indonesia amounted to $149.6 million, according to trade ministry data.
Boluarte's trip was a reciprocal visit after Prabowo travelled to Peru in November for the APEC Summit.
Indonesia's trade minister said before Boluarte's state visit that the economic deal would allow Indonesian goods to enter markets in Central and South America.
Boluarte, 63, is a highly unpopular leader at home and has faced protests against an explosion of gang violence.
Her approval rating hovered around 2 percent in May.
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Source: AFP
