Trade Minister Budi Santoso Inaugurates IPBA, the Indonesia-Philippines Business Association
CEBU, Investortrust.id – Trade Minister Budi Santoso has officially launched the Indonesia-Philippines Business Association (IPBA) in Cebu, Philippines, on Wednesday (6 May 2026). This historic moment coincides with the celebration of 75 years of diplomatic relations between the two countries and was held on the sidelines of the ASEAN 2026 Summit series.
The presence of IPBA is seen as tangible evidence of the commitment of Indonesia and the Philippines to strengthen economic integration in Southeast Asia through more dynamic strategic partnerships.
In his speech, the Trade Minister, affectionately known as Mendag Busan, emphasised that close collaboration between countries is the key to economic stability and strength in the ASEAN region.
“Close cooperation between countries is the key to the strength of ASEAN nations. The emergence 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 closer trade, investment, and business partnerships,” he stated, as quoted on Sunday (10 May 2026).
The formation of this association was actually initiated by the Trade Attaché (Atdag) in Manila since mid-2024 as an official platform for business actors. The direct endorsement by Mendag Busan reflects the full support of the Indonesian government in expanding business networks and optimising existing trade agreements.
Furthermore, IPBA is designed to play an advocacy role for entrepreneurs to mitigate various technical barriers in the field, ensuring that the flow of goods and services between countries continues without significant obstacles.
Diversification of trade products is also a main focus to enhance economic resilience in facing global fluctuations. Mendag Busan asserted that trade diversification will make Indonesia and the Philippines more resilient in addressing global challenges.
To achieve this target, IPBA will mobilise various promotional programmes, from trade missions and business forums to business matching agendas that specifically connect Indonesian exporters with potential buyers and investors in the Philippines.
In addition to targeting large corporations, the association also carries a socio-economic mission by providing capacity-building programmes for national SMEs to become more competitive in international markets. This mentoring programme includes export training, in-depth understanding of regulatory standards in the Philippines, product packaging enhancement, and facilitation of cross-border trade through e-commerce platforms.
Through this scheme, local business actors are expected to achieve sufficient export readiness to penetrate the Philippine market sustainably.
IPBA President Darmilo Sosa welcomed the Indonesian government’s initiative positively and believes that the future of ASEAN’s economic growth greatly depends on the quality of collaboration. According to him, with the establishment of IPBA, Indonesia and the Philippines are creating new opportunities for trade, investment, and sustainable economic development.
For information, the Philippines is Indonesia’s eighth-largest trading partner with export value reaching USD 10.22 billion in 2025, while Indonesia holds the fourth position as a main supplier of the Philippines’ import needs, particularly for metal commodities and vegetable oils.