A stronger bridge between the Latin American region and the Association of Southeast Asian Nations (ASEAN) is on the horizon after the monumental meeting of the leaders of Indonesia and Peru on Monday, with the latter seeking to set a standard among its regional counterparts.
The goal is for a mutually stronger market
Indonesian President Prabowo Subianto gave a warm welcome to his Peruvian counterpart, Dina Boluarte, upon her historic arrival in the Southeast Asian powerhouse and swiftly conducted a signing ceremony for the establishment of a Free Trade Agreement (FTA) between Indonesia and Peru.
Parabowo hailed the lightning speed development of both nations, citing shared visions for a stronger South-South cooperation that should set an example to other nations.
He said that such an agreement usually takes years, but for Peru and Indonesia, it only took 14 months.
Both leaders said that the scope of the FTA primarily focuses on the already robust economic and trade ties between Indonesia and Peru, and ultimately creating a bridge between the Latin American and ASEAN communities.
In 2024 alone, Indonesia managed to export US$329.4 million worth of its high-quality products to Peru, while the Latin American nation has managed to return the favor by sending US$149.6 million worth of its products to Indonesian markets.
Moreover, both leaders have sought to work together to strengthen their markets against the tariffs of the United States, with Peru having a baseline tariff rate of 10% while Indonesia has 19%.
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Five decades of warm Jakarta-Lima ties
Boluarte was the first Peruvian leader to visit Indonesia since both nations cemented their diplomatic ties in 1975, and her arrival was also in line with the 50th anniversary of the establishment of bilateral ties between Jakarta and Lima.
She recalled that Indonesia is Peru’s sixth-largest trading partner in Asia, while Peru places fourth among Indonesian travelers’ picks as a holiday spot in the Latin American region.
Prabowo, on the other hand, said that the FTA would pave further ways for investments, cargoes and more partnerships between Peruvian and Indonesian businesses that will benefit both communities in the future.
Indonesia as LatAm’s hub for halal products
Apart from creating an economic and trade bridge between Peru and Indonesia, the latter has expressed plans to open its doors for halal products to be pitched by Latin American nations, particularly from Peru, that would help them expand their markets beyond their usual reach.
Chairman of the Indonesian Chamber of Commerce and Industry, Anindya Bakrie, said that his nation is very much prepared to review the products set to be offered by Peruvian business stockholders through the cooperation of the Halal Product Guarantee Agency.
Bakrie said that such a move would bring ASEAN communities, especially the Muslim population, to a wider market in the Latin American region.
Peru had initially confirmed that they had already reached out to Indonesian officials regarding the type of products they want to offer as halal products.
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