Indonesia, Peru to Enter a Free Trade Agreement
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Indonesia and Peru agreed to step up economic cooperation during a meeting between their foreign ministers in Lima, Peru, on Wednesday (23/05).
The cooperation is going to start with a trade in goods agreement (TIGA) to intensify trade engagement.
“Indonesia proposed that the establishment of a comprehensive economic partnership agreement [CEPA] should be carried out step-by-step, beginning with the TIGA,” the Ministry of Foreign Affairs said in a statement.
Peru is Indonesia’s fourth-largest trade partner in South America. Data from the Ministry of Trade showed an increase of around 5 percent between 2016 and 2017, with total trade valued at nearly $230 million last year.
According to the statement, Foreign Minister Retno Marsudi said during the meeting with her Peruvian counterpart, Néstor Popolizio, that Peru is an important market for Indonesia, but the economic cooperation still needs to meet its potential.
Retno also stressed the importance of increasing business interaction between the two countries and diversification of products in bilateral trade.
At the meeting, Retno invited Peruvian businesses to participate in Trade Expo Indonesia (TEI) in October. Indonesia is also set to take part in Peru’s Expoalimentaria and Mistura Food Festival later this year.
The ministers also discussed efforts to increase cooperation in other fields, including agriculture and fisheries.
Indonesia’s economic diplomacy seeks to boost bilateral trade with the country’s non-traditional markets, especially in Africa and South America.
In December, a CEPA with Chile made it the first South American country to have a free trade agreement with Indonesia.
Questions & Answers
Q.What is the initial focus of the economic cooperation between Indonesia and Peru?
What is the initial focus of the economic cooperation between Indonesia and Peru?
The cooperation will begin with a Trade in Goods Agreement (TIGA). This is intended to intensify trade engagement between the two countries before moving towards a more comprehensive partnership.
Q.How significant is Peru as a trading partner for Indonesia?
How significant is Peru as a trading partner for Indonesia?
Peru is Indonesia's fourth-largest trade partner in South America. Total trade between the two nations was valued at nearly $230 million last year, showing an increase of around 5 percent between 2016 and 2017.
Q.What steps are being taken to promote business interaction between Indonesia and Peru?
What steps are being taken to promote business interaction between Indonesia and Peru?
Indonesia's Foreign Minister invited Peruvian businesses to the Trade Expo Indonesia in October. Indonesia will also participate in Peru’s Expoalimentaria and Mistura Food Festival later this year to boost engagement.
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