In a move set to strengthen ties between Southeast Asia and South America, Indonesia and Peru have officially signed a new trade agreement, aiming to open up markets and boost economic cooperation.

Peruvian President Dina Boluarte arrived in Jakarta to a warm welcome complete with a marching band and national anthems, before meeting with Indonesian President Prabowo Subianto at the presidential palace. The two leaders oversaw the signing of a Comprehensive Economic Partnership Agreement (CEPA), a deal that was finalized in just 14 months, far faster than most similar pacts, which can take years.

“This agreement will expand market access and boost trade activity between our two countries,” President Prabowo said. He added that the partnership would also cover collaboration in defence, narcotics control, food security, energy, fisheries, and mining, although details on these areas were not disclosed.

Trade between the two nations has been growing steadily. In 2024, Indonesia exported goods worth $329.4 million to Peru, while Peru’s exports to Indonesia totalled $149.6 million, according to official data. The new deal is expected to further open doors for Indonesian products in Central and South American markets.

Boluarte’s visit to Jakarta is part of a reciprocal exchange after Prabowo travelled to Peru last November for the APEC Summit. While the Peruvian president faces low approval ratings at home, hovering around 2% in May, the agreement could be a diplomatic win, showcasing Peru’s engagement on the global stage.

With this deal, both countries are looking beyond traditional trade partners, signalling a shared interest in building stronger intercontinental economic bridges.