Ministry of Trade Inaugurates IPBA, Opening Wider Business Pathways Between Indonesia and the Philippines
The Indonesian and Philippine governments are strengthening bilateral economic cooperation through the formation of the Indonesia-Philippines Business Association (IPBA). The association was officially inaugurated by Trade Minister Budi Santoso in Cebu, Philippines, on Wednesday, 6 May 2026, during the ASEAN 2026 High-Level Conference series.
The inauguration of IPBA coincides with the 75th anniversary of diplomatic relations between Indonesia and the Philippines. The government views the association as a new bridge for business actors from both countries to expand trade and investment.
Trade Minister Budi Santoso, or Mendag Busan, stated that strengthening collaboration among ASEAN countries is a key factor in maintaining regional economic resilience.
According to him, IPBA is expected to serve as a strategic entry point for Indonesian and Philippine business actors.
“Close cooperation among countries is the key to the strength of ASEAN nations. The presence of IPBA, coinciding with the 75th anniversary of diplomatic relations between Indonesia and the Philippines, marks a new chapter in cooperation between the two parties,” said Mendag Busan in a press release quoted on Sunday, 10 May 2026.
He stated that the association is expected to strengthen trade, investment, and cross-border business partnerships.
The government also considers trade diversification an important step in facing global economic uncertainties.
“Trade diversification will make us more resilient in addressing global challenges,” he said.
The formation of IPBA was initiated by the Manila Trade Attaché in mid-2024. The Indonesian government states that the presence of the association will focus on expanding business networks and assisting in resolving trade barriers between the two countries.
IPBA will support the promotion of Indonesian products through various activities such as trade missions, business forums, and business matching. These programmes are designed to connect Indonesian business actors with buyers, distributors, importers, and investors from the Philippines.
Additionally, the association will serve as a coordination space for business actors to identify market needs and new cooperation opportunities.
The government hopes that IPBA can help improve the competitiveness of national exporters, including micro, small, and medium enterprises (MSMEs).
In the long term, IPBA is planned to provide export training, understanding of Philippine product regulations, strengthening of branding and packaging, and assistance in export readiness for Indonesian MSMEs.
IPBA President Darmilo Sosa stated that the formation of the association is an important step in tightening economic relations between the two countries.
“The future of ASEAN growth 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.
The Philippines is one of Indonesia’s main trading partners. In 2025, the value of Indonesian exports to the Philippines reached USD10.22 billion, placing the country as Indonesia’s eighth-largest export destination.
Meanwhile, for the Philippines, Indonesia is the fourth-largest supplier of imports. Several Indonesian products considered to have great potential in the Philippine market include metal products, metal ore concentrates, and vegetable oils.