Indonesia-Peru CEPA Agreed, Government to Adjust Regulations

The Ministry of Trade (“ Kemendag ”) is soon to complete negotiations on the Indonesia-Peru (“ IP ”) Comprehensive Economic Partnership Agreement (“ CEPA ”). The Director General of International Trade Negotiations (Perundingan Perdagangan Internasional/PPI), Djatmiko Bris Witjaksono, assured that the ratification process for the agreement will commence promptly.

“We will do our utmost to complete the ratification involving various elements, both from the government side and the legislature,” said Djatmiko.

Djatmiko stated that at least both countries have agreed on the elimination, reduction, and lowering of tariffs following the conclusion of the IP CEPA. Indonesia’s export commodities to Peru include automobiles and other motor vehicles, footwear/soles made of rubber/plastic/leather, and leather uppers. Meanwhile, Peru’s import commodities consist of cocoa beans, coal and briquettes/similar solid fuels, phosphate mineral or chemical fertilizers, fresh or dried wine, and unwrought zinc.

Kemendag will first complete the ratification process of the negotiations with the Indonesia’s House of Representatives (DPR RI) to become either Law or Regulation of the President. Subsequently, Kemendag and the Ministry of Finance will adjust regulations, particularly regarding the imposition of import duties on commodities imported from Peru.

“After the ratification process is completed, Regulation of the Minister of Finnace (Permenkeu) on preferential import duties will be prepared,” he said.