On August 11, 2025, a significant chapter in international trade relations unfolded as Peruvian President Dina Boluarte met with Indonesian President Prabowo Subianto in Jakarta, Indonesia. The two-day visit, marked by ceremony and high-stakes diplomacy, aimed to cement economic ties between the two nations at a time when global trade is increasingly buffeted by geopolitical headwinds and shifting policies.
The meeting followed an invitation extended by President Subianto during the APEC Summit in Peru in November 2024, setting the stage for what both leaders described as a new era of cooperation. According to the Associated Press, the highlight of Boluarte’s visit was the conclusion and signing of a Comprehensive Economic Partnership Agreement (CEPA), a deal hailed as the most significant trade cooperation agreement in the history of Indonesia and Peru.
“The CEPA is a testament to the determination of our governments to promote freer trade and strengthen our economies,” Boluarte stated during a joint news conference with Subianto. She emphasized that the agreement would not only promote the exchange of goods but also lay the groundwork for future partnerships. Subianto echoed these sentiments, noting the speed and seriousness with which both governments approached the negotiations. “This agreement will expand market access and increase trade activities between our two countries,” he affirmed, highlighting that similar agreements with other nations often take years to finalize, while this pact was achieved in just 14 months.
The timing of the deal was particularly notable. Just four days before the signing, U.S. President Donald Trump imposed higher import taxes on dozens of countries, including a 19% rate on Indonesian goods—up from previous rates. In contrast, Peruvian imports to the U.S. remain subject to a 10% baseline rate set earlier in April 2025. This policy shift has added urgency for both Indonesia and Peru to diversify their trading partners and seek new markets, as reported by Arab News.
The CEPA comes as Indonesia, Southeast Asia’s largest economy, looks to broaden its reach into Central and South American markets. Indonesian Trade Minister Budi Santoso described the deal as “a potential gateway for Indonesian goods and services to enter markets in Central and South America.” He expressed hope that the agreement would bolster Indonesia’s trade presence in the region, especially as the country seeks membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a bloc Peru already belongs to.
Trade figures show the importance of revitalizing bilateral economic relations. Indonesia’s total trade with Peru fell from $554.2 million in 2022 to $444.4 million in 2023, according to data from Indonesia’s trade ministry. Despite the decline, Indonesia enjoyed a $290.4 million trade surplus last year, driven by major exports such as vehicles, footwear, and biodiesel. The CEPA is expected to help reverse this downward trend and create new avenues for growth.
Beyond trade in goods, the agreement also paves the way for cooperation in key sectors including food, mining, energy consumption, fisheries, and defense. Subianto described the pact as a catalyst for broader collaboration, pointing out that both countries are committed to supporting food security and sustainable development. Boluarte, for her part, underscored the significance of Indonesia as a key partner for Peru in Southeast Asia, calling her visit to Jakarta “an excellent moment to reaffirm our commitment to full observance of international law, free trade, South-South cooperation, food security and sustainable development.”
One tangible result of the new partnership is the opening of the Indonesian market to Peruvian blueberries. “I am pleased to announce the access of Peruvian blueberries to the Indonesian market,” Boluarte said, highlighting how the CEPA will facilitate the exchange of products that benefit consumers in both countries. Indonesian consumers are already familiar with Peruvian quinoa, and the addition of blueberries signals a deepening of agricultural ties.
The two leaders also witnessed the signing of a cooperation agreement focused on eradicating narcotics and illegal trafficking, further broadening the scope of their partnership. This move reflects a shared commitment to addressing transnational challenges that threaten the security and well-being of both societies.
The diplomatic milestone coincided with the 50th anniversary of Indonesia-Peru diplomatic relations, lending a sense of historical continuity to the occasion. Subianto remarked on the significance of this timing, viewing the CEPA as a fitting tribute to five decades of cooperation and mutual respect.
The broader context of the agreement cannot be ignored. The imposition of higher U.S. tariffs on Indonesian exports has prompted Jakarta to accelerate efforts to secure alternative markets and strengthen regional alliances. According to Indonesia’s trade ministry, these new tariffs have introduced uncertainty for exporters and could have a chilling effect on trade volumes if not offset by new partnerships. The CEPA with Peru is seen as a timely counterbalance, offering Indonesian businesses a foothold in Latin America and reducing dependency on any single market.
For Peru, the partnership with Indonesia offers access to one of Asia’s most dynamic economies and a population of over 270 million. Boluarte’s visit to Jakarta, the world’s fourth most populous country, was framed as a strategic move to expand Peru’s global reach and ensure continued economic growth despite rising global trade barriers.
In addition to economic considerations, both leaders emphasized the importance of upholding international law and fostering South-South cooperation. The CEPA is expected to serve as a model for similar agreements between emerging economies, demonstrating that mutually beneficial partnerships can be forged even in challenging times.
While the full details of the CEPA have yet to be released, the optimism expressed by both governments is unmistakable. The agreement is widely viewed as a significant step toward closer integration between Asia and Latin America, with the potential to inspire other countries facing similar pressures from shifting trade policies and protectionist measures.
As the world’s economic landscape continues to evolve, the Indonesia-Peru partnership stands as a reminder that diplomacy, determination, and a willingness to innovate can open doors even when others are closing. For now, both nations are celebrating a hard-won victory for free trade and international cooperation—one that may well shape the future of economic relations across continents.