Indonesia and Peru Sign IP-CEPA, Eliminating Tariffs on 87% of Indonesian Goods
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JAKARTA, Investortrust.id — Indonesia and Peru have signed the Indonesia–Peru Comprehensive Economic Partnership Agreement, or IP-CEPA, eliminating tariffs on a wide range of goods and laying the foundation for deeper bilateral ties.
Under the deal, signed on Monday, Aug. 11, 2025, in Jakarta, will remove tariffs on roughly 85 percent of more than 9,700 Peruvian product lines. In return, Peru will eliminate tariffs on around 87 percent of over 6,900 Indonesian product lines.
Deputy Minister of Trade Dyah Roro Esti Widya Putri said the agreement marks Indonesia’s second trade pact with a country in the Americas and a milestone in expanding its footprint in the region.
“Peru is an important partner in strengthening Indonesia’s engagement with countries across the Americas,” Roro said during the Indonesia–Peru Business Forum held at Menara Kadin in Jakarta.
Roro emphasized that IP-CEPA was designed as an incremental agreement. Following two years of implementation, both countries are expected to enter negotiations to broaden the pact to include investment and services. She noted that the next step will be formal ratification by both governments to bring the agreement into effect.
The tariff elimination is expected to significantly boost Indonesian exports, particularly in key sectors such as footwear, textiles, vegetable oils and fats, and primary batteries. In exchange, Indonesia will grant zero-tariff access to a range of Peruvian products, including chocolate, wine, and tara, a natural additive extracted from the Caesalpinia spinosa plant.
“Hopefully, IP-CEPA brings us more than just numbers,” Roro said. “It should also strengthen people-to-people connections, cultural and knowledge exchange, and generate real economic impact.”
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