INDUSTRY.co.id - Jakarta, Indonesia and the Philippines strengthened economic relations through the signing of two memoranda of understanding (MoUs) on tripartite trade returns with the potential for transactions reaching USD 350 million or around Rp6.29 trillion. The signing involving business actors of the two countries was witnessed by Minister of Trade Budi Santoso at the Ministry of Trade Office, Jakarta, Monday (8/6).
The trade return scheme is considered to be one of the strategic alternatives in the face of exchange rate pressure and global trade uncertainty. Through this mechanism, trading transactions can be carried out without full dependence on cash payments using Amerika Serikat (AS) dollars, while helping the efficiency of the use of foreign exchange reserves.
“A well-structured trade return scheme can be a trading instrument amid the current global trade uncertainty and currency pressures. The government is fully committed to providing regulatory guidance and trade facilitation for Indonesian business actors. This is important so that the entire business process can run with clear legal certainty," said the Minister of Trade of Busan in response to the signing of the MoU.
The two signed agreements involve companies from Indonesia and the Philippines in the form of tripartite cooperation.
The first MoU brought together Asian Pyrochem Technologies from the Philippines, PT Trade Barter Indonesia, and the Indonesian Garment and Textile Association. The three parties agreed on the exchange of raw abaca fiber for textile products with the transaction value reaching USD 50 million per year.
Meanwhile, the second MoU involves Asian Pyrochem Technologies, PT Trade Barter Indonesia, and PT Krakatau Global Trading. The cooperation includes the exchange of steel products with iron ore from the Philippines to meet the production needs of Krakatau Steel with a value of up to USD 300 million per year.
“These two projects demonstrate the commitment of Indonesian and Filipino businesses to present innovative and mutually beneficial trade solutions. We hope that this cooperation can strengthen the industrial supply chain and open up wider cooperation opportunities in the future," said the Minister of Trade of Busan.
In addition to the MoU signing agenda, the Philippine delegation also participated in business matching activities with leading Indonesian exporters and producers. A number of commodities introduced include building materials and various other potential products that are considered to have great prospects in the Philippine market.
The business exploration activity is a follow-up to the establishment ofIndonesia-Philippines Business Association (IPBA)which was initiated on May 6, 2026 in Cebu, Philippines. The formation of the association was carried out to coincide with the visit of the Minister of Trade of Busan in order to attend the ASEAN 2026 Summit. The presence of IPBA is expected to strengthen connectivity and business partnerships between the two countries.
“We greatly appreciate IPBA's initiative in strengthening business relations and connectivity between Indonesia and the Philippines, especially after the successful launch of IPBA in Cebu last month. This presence is a tangible form of concrete business involvement and is based on common interests," said the Minister of Trade of Busan.
To expand trade cooperation opportunities, the Minister of Trade of Busan also invited Filipino business actors to participate in the 41st Trade Expo Indonesia which will take place on 14-18 October 2026 at ICE BSD City, Tangerang, Banten.
“We want this momentum to continue. The Ministry of Trade provides full support through various regulations to connecting Filipino business people," said the Minister of Trade of Busan.
In terms of trade performance, the economic relations between Indonesia and the Philippines show a steadily strengthening trend. In the January-April 2026 period, the total trade between the two countries was recorded at USD 4.16 billion, an increase of 12.03 percent compared to the same period the previous year. From this value, Indonesia posted a trade surplus of USD 2.93 billion.
On the export side, Indonesia also recorded anaverage annual growth of 1.63 percent during the 2021-2025 period. Throughout 2025, the two countries' total bilateral trade reached USD 12.02 billion with a surplus for Indonesia of USD 8.42 billion.
“Indonesia has great growth opportunities in the Philippine market. We see promising export potential for a variety of national superior products ranging from hybrid vehicles, oleochemical raw materials, to processed coffee and processed foods. Indonesia has a competitive advantage in thesesectors," added the Minister of Trade of Busan.
