Indonesian Foreign Affairs Minister Sugiono and his Chilean counterpart Francisco Pérez Mackenna discussed avenues to strengthen bilateral cooperation across several strategic sectors during a meeting in the Indonesian capital.
Both ministers emphasized the significance of enhancing business-to-business (B2B) cooperation to guarantee the effective execution of the Indonesia-Chile Comprehensive Economic Partnership Agreement (IC-CEPA).
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The two countries also took the opportunity to reaffirm their shared dedication to fostering solidarity among Global South nations in promoting a just, inclusive, and sustainable global framework.
The Indonesian Trade Ministry reports that Indonesia and Chile executed the IC-CEPA on December 14, 2017, and began its implementation on August 10, 2019.
A trade in services agreement was later signed on November 21, 2022. Indonesia recently approved the Trade in Services Protocol within the IC-CEPA at the beginning of 2025.
Within the IC-CEPA framework, 6,704 Indonesian products, such as agricultural, fishery, manufacturing, mining, and industrial items, benefit from tariff-free access to Chile.
In addition to these sectors, the agreement encompasses collaboration in investment promotion and facilitation, science, research and development, small and medium enterprises (SMEs), tourism, logistics, international transportation, along with information and communication technology.
Data from the Trade Ministry indicated that total bilateral trade between Indonesia and Chile in 2025 amounted to US$535.51 million, representing a 12.4 percent rise from the prior year.
Data shows that Indonesian products are gaining competitiveness in the Chilean market, especially in the automotive sector, fertilizers, and footwear.
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Earlier, Indonesian Agriculture Minister Andi Amran Sulaiman hosted his counterpart from Chile, Esteban Valenzuela Van Treek, in Jakarta on Monday (May 19), to explore avenues for expanded agricultural and trade cooperation to mutually enhance food security.
The minister highlighted the significance of Indonesia following Chile's careful approach to water usage during a 14-year drought caused by the El Nino phenomenon.
Chile has developed a paddy variant that utilizes just 40 percent of the water required by other varieties for growth—an advancement that may assist Indonesia in reaching its food self-sufficiency objective. In the meeting, the two ministers talked about trade possibilities, with Chile expressing interest in exporting potatoes, milk, and cattle to Indonesia.
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Sulaiman reacted favorably but mentioned that Indonesia would evaluate its local potato production and needs prior to contemplating imports. The minister assured his Chilean counterpart that Indonesia is willing to fulfill its annual national milk demand of 3.8 million tons by augmenting the restricted domestic supply with imports from Chile.