Halal Cooperation Agreement Signed by Indonesia and New Zealand

On June 13, 2025, Indonesia and New Zealand signed a landmark Halal Cooperation Arrangement (HCA) in Jakarta, a pivotal step to enhance bilateral trade, particularly in New Zealand’s red meat and dairy sectors. The agreement was formalized by New Zealand’s Foreign Minister Winston Peters, Indonesian Foreign Minister Sugiono, and Ahmad Haikal Hasan, Head of Indonesia’s Halal Product Assurance Organizing Agency (BPJPH). This deal streamlines halal certification and product assurance processes, ensuring compliance with Indonesia’s stringent halal standards under the 2014 Halal Product Assurance Law. It facilitates market access to Indonesia’s 280-million-strong population, the world’s largest Muslim-majority market, where demand for halal-certified products is surging.

New Zealand Agriculture and Trade Minister Todd McClay highlighted Indonesia’s role as a key growth market, with dairy and meat exports valued at over NZD 1.1 billion (USD 664 million) in 2024, representing a significant portion of New Zealand’s USD 2 billion total exports to Indonesia. The HCA, developed through extensive consultation with New Zealand’s Dairy Companies Association, Meat Industry Association, and exporters like Fonterra and Alliance Group, addresses technical trade barriers, enhances exporter confidence, and aligns with Indonesia’s mandatory halal certification requirements for food and beverage products.

The agreement fosters collaboration on halal standards, training, certification processes, and research, paving the way for cross-border investment and innovation in halal production. New Zealand’s Ambassador to Indonesia, Phillip Taula, emphasized that the HCA builds trust and transparency in halal trade, benefiting both economies. The deal supports a broader ambition to achieve NZD 6 billion in two-way trade by 2029, a goal discussed during the 12th Joint Ministerial Commission meeting in Jakarta. It also strengthens nearly 70 years of diplomatic relations, marking a milestone in economic and cultural cooperation.

The HCA complements existing frameworks like the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), enhancing New Zealand’s competitiveness in Indonesia’s halal market. Indonesian officials noted that the agreement will facilitate smoother trade flows, reduce certification costs, and promote mutual recognition of halal standards, benefiting small and medium enterprises in both nations. This partnership positions New Zealand as a trusted supplier of halal-compliant dairy and meat, while Indonesia gains access to high-quality, certified products to meet growing domestic demand.