Indonesia has established the Indonesia-Philippines Business Association (IPBA) in Cebu, marking a significant step in deepening economic ties between the two ASEAN neighbours as both countries push to expand trade volumes and investment flows ahead of the ASEAN Summit.

Antara reported that Indonesian trade minister Budi Santoso inaugurated the IPBA on 6 May, describing it as a milestone in 75 years of economic relations and a reflection of both countries' commitment to strengthening cooperation.

The association was initiated by Indonesia's trade attaché in Manila in 2024 and is expected to expand business networks while leveraging existing trade frameworks to increase the volume and value of bilateral commerce.

Santoso said the association would serve as a strategic gateway for businesses from both countries to boost trade, investment and partnerships, and that trade diversification would make both economies more resilient against global challenges.

The IPBA will serve as a platform to promote Indonesian products in the Philippines through trade missions, business forums and business-matching sessions linking buyers, distributors, importers and investors.

Indonesia exported goods worth US$10.22 billion (approximately €9.4 billion) to the Philippines in 2025, making the Philippines its eighth-largest export destination, while Indonesia ranks as the Philippines' fourth-largest import source.

Indonesia sees strong potential to expand exports of products such as metal goods, ore concentrates and vegetable oils to the Philippine market.

The IPBA launch comes as ASEAN economies accelerate efforts to deepen intra-regional trade and reduce dependence on external markets amid evolving global trade conditions.

Explore the full story behind the Indonesia-Philippines Business Association and its role in reshaping bilateral trade.