Indonesia and Cili Optimize IC-CEPA to Boost Trade and Investment

Minister of Trade budi santoso (kemendag)

JAKARTA - Indonesia and Chile agreed to optimize the implementation of the Indonesia-Chile Comprehensive Economic Partnership Agreement (IC-CEPA) to increase trade and accelerate investment cooperation between the two countries.

The commitment emerged in a meeting between Trade Minister Budi Santoso and Foreign Minister Cili José Francisco Pérez Mackenna in Jakarta, Monday, July 20.

Budi said that Indonesia's trade relations with Cili continued to show positive developments. According to him, both countries now need to maximize the implementation of IC-CEPA so that the benefits of the agreement are felt more by the business world.

"Indonesia appreciates the strengthening of trade relations with Cili which continues to show positive and promising progress. Indonesia and Cili already have an IC-CEPA trade agreement. What both countries need to do next is to optimize this agreement to increase the value of trade while expanding market access for both countries," said Budi in an official statement, Tuesday, July 21.

According to Budi, Indonesia has implemented the IC-CEPA for the goods trade sector since 2019 and the services trade sector in 2025. Meanwhile, the two countries have also signed a joint statement to start investment sector negotiations in 2024.

The government, continued Budi, also hopes that the discussion of investment agreements can be completed through a series of virtual meetings throughout this year.

"Our IC-CEPA negotiations and implementation are carried out gradually based on priorities. We hope that investment sector negotiations can be completed intensively through a series of virtual meetings this year. We hope for quick, balanced, and long-term oriented negotiation results," he said.

In addition to accelerating investment negotiations, the Ministry of Trade also proposed the establishment of a business forum or business council to strengthen business-to-business (B2B) cooperation between investors, exporters, and importers of both countries.

"There needs to be an approach between Indonesian business actors (business-to-business/B2B) and Cili, for example through a business council. The interaction between Indonesian business actors and Cili will further accelerate the increase in trade between the two countries," said Budi.

Meanwhile, Foreign Minister Cili José Francisco Pérez Mackenna expressed optimism that trade between the two countries could still be improved, including through cooperation in the engineering education, pharmaceutical, and green technology development sectors.

During the meeting, Cili also expressed his support for Indonesia's accession process to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Organization for Economic Co-operation and Development (OECD). On the other hand, Cili hopes that Indonesia will support his country's accession process to the Regional Comprehensive Economic Partnership (RCEP).

Based on data from the Ministry of Trade, the total trade between Indonesia and Cili from January to May 2026 reached 226.2 million US dollars. Indonesia's export value was recorded at 179.1 million US dollars, while imports from Cili reached 47.1 million US dollars, so Indonesia recorded a trade surplus of 132.1 million US dollars.

The main commodities Indonesia exports to Cili include cars and motor vehicles, mineral or chemical fertilizers, and footwear. Meanwhile, the main products imported from Cili include frozen fish, chemical wood pulp, mineral and chemical fertilizers, starch, and wine.