Indonesian President Prabowo Subianto and Peruvian President Dina Boluarte shake hands after signing the Indonesia–Peru Comprehensive Economic Partnership Agreement (IP-CEPA) at the presidential palace in Jakarta, August 2025. The deal aims to boost trade flows by cutting tariffs and expanding South–South economic cooperation. (Photo: Reuters)
Indonesia and Peru’s Comprehensive Economic Partnership Agreement (IP-CEPA) marks a turning point in bilateral trade relations, as both nations commit to eliminating tariffs on a wide range of goods. For Indonesia, this means greater access for key exports such as palm oil, biodiesel, footwear, and automotive products into Latin American markets. Peru, in return, gains expanded entry for its agricultural commodities, from coffee and cocoa to blueberries and avocados, into Southeast Asia. This mutually beneficial framework lays the foundation for deeper cooperation beyond goods, covering energy, fisheries, and even defense collaboration in the years ahead.
Trade Expo Indonesia becomes stage for Latin America.
The signing of IP-CEPA arrives just months before Trade Expo Indonesia (TEI) 2025, the country’s flagship event for showcasing products and forging international deals. With the legal certainty of reduced tariffs, Peruvian and other Latin American businesses are expected to attend in larger numbers, seeking direct engagement with Indonesian exporters. TEI thus evolves into more than a marketplace, it transforms into a global platform where international agreements meet commercial reality. For Indonesian small and medium enterprises, especially in manufacturing and agro-based industries, this creates unprecedented opportunities to expand beyond traditional Asian and Middle Eastern markets.
TEI 2025 therefore serves as more than a marketplace, it becomes the living embodiment of Indonesia’s trade diplomacy in action. Exhibitors and buyers will not only see products but also witness how state-level negotiations materialize into tangible business opportunities. The presence of Latin American delegations adds a new dimension, positioning TEI as a global bridge between regions that historically had limited direct trade. For Indonesian SMEs, this creates unprecedented visibility and new partnerships that can strengthen long-term competitiveness in global supply chains.
Prabowo’s diplomacy bridges continents through economic cooperation.
President Prabowo’s trade mission to Peru reinforces the strategic alignment between IP-CEPA and TEI, blending state-level agreements with on-the-ground business initiatives. By leading delegations of government officials and business representatives, he underscores Indonesia’s intent to turn diplomatic commitments into concrete outcomes. This mission signals Indonesia’s ambition to become a connector between Asia and Latin America, positioning Jakarta not just as a regional hub but as a player in broader South–South cooperation. The success of this dual strategy anchoring trade through CEPA and showcasing opportunity through TEI will determine how effectively Indonesia can expand its global trade footprint under Prabowo’s leadership.
Beyond the symbolism, Prabowo’s diplomacy carries practical outcomes for both nations. The synergy between IP-CEPA and TEI ensures that commitments on paper are quickly transformed into contracts, investments, and partnerships. Latin America, starting with Peru, becomes an alternative growth market that complements Indonesia’s existing networks in Asia-Pacific and Africa. For Indonesia, the dual strategy of negotiating trade deals and immediately operationalizing them through high-profile expos and missions may become a model for how the country expands its influence in global commerce.
References
- Reuters. "Indonesia and Peru Sign Comprehensive Economic Partnership Agreement." Reuters, August 20, 2025. https://www.reuters.com/markets/commodities/indonesia-peru-sign-free-trade-deal-2025-08-11/
- Jakarta Globe ID. "Peru to Drop Tariffs on Nearly All Indonesian Imports, Including Palm Oil" Jakarta Globe.Id, August 12, 2025. https://jakartaglobe.id/business/peru-to-drop-tariffs-on-nearly-all-indonesian-imports-including-palm-oil
- The Diplomat. "Indonesia and Peru’s New FTA is a Model for South-South Cooperation" The Diplomat, August 18, 2025. https://thediplomat.com/2025/08/indonesia-and-perus-new-fta-is-a-model-for-south-south-cooperation/
