(AseanAll)  — Indonesia and Peru have agreed to speed up the completion of the negotiations of the Comprehensive Economic Partnership Agreement between the two countries, known as the Indonesia-Peru (I-P) Comprehensive Economic Partnership Agreement (CEPA) or IP-CEPA.  

This agreement was reached when the two countries held the RI-Peru Bilateral Consultation Forum in Lima, Peru on September 10, 2024 on the sidelines of the Indonesia-Latin America and the Caribbean (INALAC) Business Forum. 

The Indonesian delegation was led by Director General for American and European Affairs, Indonesian Ministry of Foreign Affairs Umar Hadi and accompanied by Indonesian Ambassador to Peru Ricky Suhendar and Director of Americas II, Epiphania Riris Wusananingdyah. Meanwhile, the Peruvian delegation was chaired by the Director General of Asia and Oceania at the Ministry of Foreign Affairs, Fernando Julio Antonio Quiros Campos.

"The completion of CEPA negotiations between Indonesia and Peru will be a catalyst for a significant expansion of trade and investment cooperation between Indonesia and Peru,’ said Umar Hadi.  According to DG Umar Hadi, if CEPA is enacted, the volume of trade between the two countries could increase threefold. 

Peru is one of the most important trading partners for Indonesia in the Latin American region. In 2023, the total two-way trade between Indonesia and Peru reached USD 444 million. 

The first CEPA negotiations between Indonesia and Peru were held on 27-30 May 2024 in Lima. In this first round, negotiators from both countries focused on the goods sector, including market access, customs and trade facilitation, and efforts to overcome technical barriers to trade in goods. 

In addition to discussing CEPA, in the bilateral meeting, the two countries also discussed other strategic issues in the bilateral context such as inter-parliamentary cooperation, defence, economic development to palm oil and anti-drug and education.

DG Umar Hadi and his counterpart also discussed regional and global issues, such as ASEAN-Peru, ASEAN Outlook on the Indo-Pacific (AOIP) to Peru's Chairmanship of APEC 2024. In particular, the two countries are also targeting to finalise a visa-free agreement for diplomatic and official passport holders soon. 

Since establishing diplomatic relations for the first time in 1975, the two countries have had a close and productive relationship, which is reflected in mutual visits at the level of high-ranking officials and parliaments of both countries.