Trade Minister Says IP-CEPA Opens Export Opportunities for Vehicles and Textiles
Trade Minister Budi Santoso has said that the ratification of the Indonesia-Peru Comprehensive Economic Partnership Agreement (IP-CEPA) will open access for various products such as vehicles and spare parts, textiles, and leather goods in the Latin American market. During a working meeting with Commission VI of the Indonesian House of Representatives in Jakarta on Thursday (16/7), the Trade Minister stated that the government recommends ratifying the IP-CEPA through a presidential regulation so that the economic benefits of the agreement can be felt immediately.
“Accelerating the ratification and implementation of the IP-CEPA is crucial so that its potential economic benefits can be realised immediately,” Budi said in a statement in Jakarta on Friday. The Trade Minister noted that Indonesian products expected to benefit the most from the implementation of IP-CEPA include vehicles and spare parts, vegetable oils and fats, leather products, textiles, and ready-made garments.
Through this agreement, Indonesia will obtain preferential tariffs for 7,257 tariff lines, equivalent to 90.68 percent of Peru’s total tariff lines. “With the enactment of IP-CEPA, Indonesia’s exports to Peru are projected to reach USD 745 million by 2045,” Budi said. IP-CEPA also opens opportunities for micro, small, and medium enterprises to enter the Latin American market, particularly for leather products, light furniture, packaging, automotive and spare parts, and processed foods.
According to Budi, Peru holds a strategic position as a gateway for Indonesian products to the South American market, 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 649 million people. IP-CEPA is considered a strategic step to expand market access to the Latin American region and strengthen national economic resilience, while increasing national exports, opening investment opportunities, and encouraging domestic employment.
The IP-CEPA negotiations used an incremental approach. The first phase of negotiations covered trade in goods, which began in May 2024, lasted about one and a half years, and was signed on 11 August 2025. The next phase will cover negotiations on trade in services and investment. The implementation of IP-CEPA is expected to benefit the Indonesian economy by improving public welfare, driving economic growth, and creating a more conducive climate for investment.
Meanwhile, Indonesia and Peru’s trade performance continues 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, resulting in a trade surplus of USD 187.53 million. Throughout 2025, the value of Indonesia’s exports to Peru reached USD 462.97 million and imports from Peru stood at USD 104.44 million, giving Indonesia a trade surplus of USD 358.54 million.