LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

August 25, 2025

What Will Deeper Trade Ties Mean for Peru & Indonesia?

Peru and Indonesia signed a trade agreement during Peruvian President Dina Boluarte’s visit to Peru on Aug. 11, when she met with Indonesian President Prabowo Subianto. // Photo: Peruvian Government.

Q

A

Cynthia Sanborn, professor of political science and director of the Center for China and Asia-Pacific Studies at Universidad del Pacífico in Peru: “This year, Peru and Indonesia celebrate 50 years of diplomatic relations, as well as the signing of a comprehensive economic partnership agreement, or CEPA. Similar to a free trade agreement (FTA), Indonesia prefers CEPAs because they include noncommercial agreements, in this case regarding environmental issues, tourism and services, agriculture and fisheries, among other topics of common interest. Currently, bilateral trade between the two countries is not significant, representing less than 0.5 percent of Peru´s total trade and 0.2 percent of Indonesia’s. Peru primarily exports agricultural products to Indonesia, such as cacao and grapes, and it imports manufactured goods, mainly vehicles and footwear. However, this agreement is part of a longer-term strategic effort by Peru to pivot to Asia—including the large and dynamic economies of Southeast Asia (SEA)—in its efforts to diversify markets and attract new investment. The challenge now is to have follow-up strategies to help Peruvian firms take advantage of…”

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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