Indonesia, Chile push IC-CEPA to expand bilateral trade

Jakarta (ANTARA) - Indonesia and Chile agreed to accelerate the implementation of their comprehensive economic partnership agreement, aiming to expand bilateral trade, improve market access, and advance investment negotiations.

Indonesia's Minister of Trade Budi Santoso made the remarks after meeting Chilean Minister of Foreign Affairs Jose Francisco Perez Mackenna in Jakarta on Tuesday to discuss efforts to optimize the Indonesia-Chile Comprehensive Economic Partnership Agreement (IC-CEPA).

"Indonesia and Chile already have the IC-CEPA trade agreement. The next step is to optimize this agreement to increase trade while expanding market access for both countries," Budi said.

He reaffirmed Indonesia's commitment to implementing the agreement in phases based on mutually agreed priorities.

Indonesia brought the agreement's trade in goods chapter into force in 2019, followed by the trade in services chapter in 2025. The two countries also signed a joint statement in 2024 launching negotiations on an investment chapter.

"We hope the investment negotiations can be completed through a series of intensive virtual meetings this year," Budi said.

He said bilateral trade still has considerable room for growth despite the existing agreement, adding that closer engagement between businesses in both countries would help unlock greater commercial opportunities.

To support that effort, Budi proposed establishing a business forum bringing together investors, exporters, and importers from Indonesia and Chile.

Chile ranked as Indonesia's 46th-largest export destination and its 65th-largest source of imports.

During January-May 2026, bilateral trade totaled US$226.2 million. Indonesia's exports to Chile reached US$179.1 million, while imports stood at US$47.1 million, resulting in a trade surplus of US$132.1 million.

In 2025, total bilateral trade amounted to US$535.5 million. Indonesia exported US$441.5 million worth of goods to Chile and imported US$94.0 million, posting a trade surplus of US$347.5 million.

Indonesia's main exports to Chile include passenger vehicles and other motor vehicles, mineral and chemical fertilizers, and footwear.

Its main imports from Chile include frozen fish, chemical wood pulp, mineral and chemical fertilizers, starch, and grapes.