Indonesia-Philippines Inaugurate IPBA to Strengthen ASEAN Trade and Investment
Indonesia’s Minister of Trade, Budi Santoso, has inaugurated the Indonesia-Philippines Business Association (IPBA) in Cebu, Philippines, on Wednesday (6 May) during the ASEAN Summit 2026. Budi stated that IPBA represents a commitment by Indonesia and the Philippines to strengthen economic synergy that has been ongoing for 75 years.
“The close cooperation between countries is the key to the strength of ASEAN nations. The establishment of IPBA, coinciding with 75 years of diplomatic relations between Indonesia and the Philippines, marks a new chapter in cooperation between the two parties. It is hoped that IPBA will serve as a strategic gateway for business actors from both countries, driving stronger trade, investment, and business partnerships,” said Budi in an official statement received in Jakarta on Saturday (9 May).
For information, the formation of IPBA as an association encompassing Indonesian and Philippine business actors was initiated by the Trade Attaché in Manila in mid-2024. The endorsement of IPBA by Minister Budi demonstrates the Indonesian government’s support for efforts to strengthen trade relations between the two countries.
According to Budi, the presence of IPBA will expand business networks and maximise the utilisation of trade cooperation between the two countries, thereby driving an increase in total trade. Additionally, IPBA is expected to advocate for business actors regarding trade barriers to ensure the trade flow between the two countries continues to rise.
“Trade diversification will make us more resilient in facing global challenges,” Budi added.
In the future, according to Budi, IPBA will support the promotion of Indonesian products through the implementation of trade missions, business forums, and business matching activities that bring together business actors with potential buyers, distributors, importers, or Philippine investors.
“IPBA will also serve as a space for collaboration for business actors from both countries to identify business needs, open new cooperation opportunities, and convey various trade challenges faced by Indonesian and Philippine business actors,” Budi continued.
Furthermore, moving forward, according to Budi, to support the increased competitiveness of national exporters, IPBA is expected to provide capacity-building programmes for MSMEs and Indonesian exporters. These programmes include facilitation of business matching by the Trade Attaché Office at the Indonesian Embassy in Manila, export training, understanding of Philippine product regulations and standards, strengthening of branding and packaging, onboarding and cross-border e-commerce, as well as export readiness assistance.
“The future growth of ASEAN lies in collaboration. With the establishment of IPBA, Indonesia and the Philippines are creating new opportunities for trade, investment, and sustainable economic development,” said Darmilo Sosa, President of IPBA.
It should be noted that the Philippines is one of Indonesia’s main trading partners, ranking 8th as an export destination with a total export value in 2025 of US$10.22 billion. Indonesia ranks 4th as a main supplier for Philippine imports.
Several products with potential for marketing in the Philippines include metal products, metal ore concentrates, and vegetable oils. This indicates that Indonesia holds an important position for the Philippines.