DPR Approves IP-CEPA, 90 Percent of Indonesian Products to Peru to Receive Tariff Facilities

Trade Minister Budi Santoso stated that more than 90 percent of Indonesian products will receive preferential tariff facilities in the Peruvian market through the Indonesia–Peru Comprehensive Economic Partnership Agreement (IP-CEPA). The policy is expected to strengthen the competitiveness of national products while opening wider access to the Latin American market. According to Budi, IP-CEPA is a strategic step by the government to expand Indonesia’s export markets. In addition to increasing trade, the agreement also opens up investment opportunities, encourages economic growth, and creates domestic jobs. “Indonesian products that will benefit the most from IP-CEPA include vehicles and spare parts, vegetable oils and fats, leather products, textiles, and ready-made garments. With the implementation of IP-CEPA, Indonesia’s exports to Peru are projected to reach USD 745 million by 2045,” the Trade Minister said during a working meeting with Commission VI of the Indonesian House of Representatives (DPR RI) in Jakarta. Budi explained that Indonesia obtained tariff preferences for 7,257 tariff lines, equivalent to 90.68 percent of Peru’s total tariff lines. Meanwhile, Peru obtained tariff preferences for 10,531 tariff lines, or 92.26 percent of Indonesia’s total tariff lines. He said Peru holds a strategic position as an entry point for Indonesian products into the South American region, as well as providing access to the Pacific Alliance and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), with a total population of around 649 million people. According to Budi, the government recommends accelerating the ratification of IP-CEPA through a Presidential Regulation so that the economic benefits of the agreement can be immediately felt by national business actors. “Accelerating the ratification and implementation of IP-CEPA is crucial so that its potential economic benefits can be felt immediately,” he said. Budi revealed that trade relations between Indonesia and Peru continue to show a positive trend. In the January-May 2026 period, Indonesia’s exports to Peru reached USD 225.77 million, while imports from Peru amounted to USD 38.24 million. Consequently, Indonesia recorded a trade surplus of USD 187.53 million. During the 2021-2025 period, total bilateral trade between the two countries grew by 5.51 percent. Indonesia’s export trend increased by 4.60 percent, with a consistently maintained trade surplus, indicating that Indonesian products are competitive in the Peruvian market. The government also assesses that the trade structures of the two countries are complementary, thus not creating direct competition with domestic industries. Indonesia’s main export products include motor vehicles and spare parts, footwear, and cooling equipment. Meanwhile, imports from Peru are dominated by cocoa beans, mineral fertilisers, and agricultural commodities. Commission VI of the DPR RI approved the ratification of IP-CEPA through a Presidential Regulation. The DPR also requested that the Ministry of Trade continue to optimise the utilisation of Peru as an entry point for the distribution of Indonesian products to the Latin American region and conduct a comprehensive analysis of the benefits and risks of implementing the agreement.