Indonesia and Chile have committed to accelerating the implementation of the Indonesia-Chile Comprehensive Economic Partnership Agreement (IC-CEPA) to stimulate bilateral trade and investment. Following a meeting in Jakarta on Tuesday between Indonesian Minister of Trade Budi Santoso and Chilean Minister of Foreign Affairs Jose Francisco Perez Mackenna, the two nations confirmed plans to optimize the existing framework through phased, priority-based cooperation.
Optimizing the IC-CEPA Framework
The IC-CEPA has been implemented in stages since 2019, when the chapter on trade in goods first took effect. This was followed by the inclusion of a trade in services chapter in 2025. According to Budi Santoso, the next phase of the partnership focuses on finalizing an investment chapter, for which the two countries signed a joint statement in 2024. Officials aim to complete these specific negotiations through a series of intensive virtual meetings scheduled throughout this year.
Did You Know? Chile currently serves as a trade partner for Indonesia, ranking as the country’s 46th-largest export destination and 65th-largest source of imports.
Trade Performance and Future Outlook
Data from the first five months of 2026 shows a total bilateral trade volume of US$226.2 million. During this period, Indonesia maintained a trade surplus of US$132.1 million, driven by US$179.1 million in exports against US$47.1 million in imports. This follows a full-year performance in 2025 where total trade reached US$535.5 million, with Indonesia recording a trade surplus of US$347.5 million.
Commercial Commodities and Next Steps
Indonesia’s primary exports to Chile currently consist of passenger vehicles, other motor vehicles, footwear, and mineral and chemical fertilizers. Conversely, Indonesia imports frozen fish, chemical wood pulp, starch, grapes, and mineral and chemical fertilizers from Chile.
Frequently Asked Questions
What is the current status of the IC-CEPA negotiations?
The trade in goods chapter has been active since 2019 and the services chapter since 2025. The countries are currently focused on negotiating an investment chapter, which they hope to conclude via virtual meetings this year.
What is the main objective of the proposed business forum?
Minister Budi Santoso proposed the forum to bring together investors, exporters, and importers from both nations to unlock greater commercial opportunities and increase bilateral trade.
What are the primary goods traded between Indonesia and Chile?
Indonesia exports motor vehicles, footwear, and fertilizers to Chile, while importing frozen fish, chemical wood pulp, starch, and grapes.
How might the inclusion of an investment chapter change the current trade balance between these two nations?
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