The dramatic video, filmed by a police officer, shows the moment authorities shot down the Bolivian plane, license CP1818, and it crashed to the ground.
For the following three hours, authorities traded gunfire with the suspects in the remote area of central Peru, called the Valley of Pichis Palcazu in Oxapampa province.
One suspect, allegedly a Colombian man, escaped. The other suspect, the 58-year-old Bolivian pilot, was shot and taken into custody by police who transferred him to a hospital in Pucallpa.
Authorities seized 70 kilos of cocaine chloridate from the plane but believe the suspects hid at least 200 additional kilos of drugs since the planes are capable of carrying 300 kilos.
According to the United Nations, Peru is the world's second largest supplier of cocaine, after Colombia, Reuters reported.
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