In a landmark move set to redefine the global halal market, Indonesia and Malaysia are deepening their cooperation, paving the way for a trillion-dollar export boom. This alliance aims to streamline halal certification processes and boost trade between the two nations, potentially unlocking unprecedented economic opportunities.
At the heart of this collaboration is the mutual recognition of halal certifications. Effective immediately, products bearing Malaysia’s JAKIM halal logo can be exported to Indonesia without undergoing a separate certification procedure. Similarly, Malaysia will recognize Indonesia’s halal certification for products entering its market. This reciprocal agreement, finalized in late April 2025, significantly reduces bureaucratic hurdles and accelerates trade flows.
Indonesia’s ambition extends beyond regional partnerships. The nation is aggressively pursuing its goal of becoming the world’s leading producer of halal products by 2030, targeting a staggering US$2.8 trillion market. With export transactions totaling US$64.11 billion in 2024, Indonesia is already a significant player. The upcoming Halal Indo 2025 expo is expected to further solidify Indonesia’s leadership, attracting 15,000 visitors and generating transactions exceeding Rp2 billion.
Malaysia is also reinforcing its position as a global halal hub. MIHAS 2025 sets an ambitious target of RM45 billion in global halal trade. The Halal Economy Leadership Forum 2025, held in Algiers, strengthened ties between Malaysia and Algeria, aiming to unlock OIC-wide trade potential. These strategic alliances are crucial for Malaysia’s halal economy.
This Indonesia-Malaysia alliance represents a significant step towards creating a seamless halal trade ecosystem. By harmonizing standards and eliminating redundant processes, the two nations are poised to capitalize on the growing global demand for halal products, which encompasses food, cosmetics, pharmaceuticals, and tourism. The collaboration not only benefits businesses by reducing costs and time but also assures consumers of the authenticity and integrity of halal products. The halal market is driven by a growing Muslim population and increasing awareness of halal products among non-Muslim consumers due to their perceived ethical and hygienic qualities.
As Indonesia and Malaysia strengthen their halal industries, the ripple effects will be felt worldwide. Businesses seeking to tap into the burgeoning halal market will find these nations to be key partners, driving innovation, standardization, and growth in the global halal economy.