Malaysia and Indonesia Join Forces on Halal Trade, With an ASEAN Halal Council in Sight

The two largest halal economies in Southeast Asia are aligning their certification regimes at a moment when both are tightening them.

KUALA LUMPUR. Malaysia and Indonesia have established a joint halal council aimed at easing the passage of certified products between their markets, the most concrete step yet toward a regional halal body for ASEAN.

Malaysia’s Deputy Prime Minister announced the council on 25 September at the Global Halal Summit, held alongside the Malaysia International Halal Showcase. Indonesia’s halal agency, BPJPH, will chair it. Malaysia will hold the secretary-general role, with JAKIM, the Department of Islamic Development, expected to serve as secretariat. The first meeting is scheduled for October. Its stated purpose is mutual certification facilitation and the reduction of duplicate procedures.

Building on 2023

The council does not start from zero. In 2023, BPJPH and JAKIM signed a memorandum recognising each other’s halal certificates for domestic products, and each agency was listed as a recognised certification body in the other’s market. At the time, JAKIM said certified Malaysian products and logos could enter Indonesia without restriction. The memorandum now runs to June 2029. Negotiations on facilitating certification and trade concluded in June, the Deputy Prime Minister said, and the two countries have begun accepting each other’s halal logos.

The trade is considerable. Malaysia shipped RM7.77 billion of halal-certified products to Indonesia between 2021 and 2023, and Malaysia’s incoming ambassador to Indonesia estimates annual halal-related trade at US$2 billion to US$3 billion.

The agenda: fewer repeated procedures

Announcing the council, the Deputy Prime Minister said it would address differing halal requirements, repeated procedures and the difficulties businesses face entering a neighbouring market. Success, in his framing, means fewer barriers, easier market access and more companies trading across borders.

The emphasis falls on smaller producers. Only about 14.7 per cent of Malaysia’s halal-certified companies export, even though the halal sector accounts for roughly 11 per cent of GDP. Malaysia targets about RM80 billion in halal exports by 2030. Small manufacturers, he said, need a clearer route to overseas buyers and support in fulfilling first export orders.

Procedure is where that support would matter. Indonesia exempts imports certified by a foreign body with a recognition agreement from separate national certification, but requires the certificate to be registered through BPJPH’s online system. Processing can take up to 20 working days. Malaysia permits a halal description on imported goods certified by a body JAKIM recognises, with that body’s name marked on the product. A standing forum for both agencies is a natural venue for aligning such steps. Neither government has said which procedures will be taken up first.

Roles and rhetoric

The division of labour reflects the partnership as officials present it. Malaysia, the Deputy Prime Minister said, contributes experience in standards, governance and trade facilitation. Indonesia contributes scale, production capacity and entrepreneurship.

BPJPH’s head struck a wider note, describing halal as a standard of transparency, traceability and quality that serves all consumers, and Malaysia as a natural partner given its decades of experience. He said the bilateral council points toward an ASEAN council, and restated Indonesia’s ambition to become a global halal hub.

Indonesia’s changing rules

The timing is notable. Indonesia’s halal certification deadline for imported food, beverages and slaughtered products falls on 17 October 2026. A BPJPH regulation signed in August adds a pre-shipment conformity check for imports, conducted by an inspection body at the loading warehouse. BPJPH named four qualified inspection bodies on 10 September. Officials have not said whether either development is on the council’s agenda. For Malaysian exporters, the first meeting arrives in the middle of this regulatory transition, which gives a standing channel between the two agencies added value.

Commercial support

Malaysia is pairing the diplomatic track with trade support. At the same event, MATRADE and JAKIM exchanged letters of intent on the Malaysia Halal Global Nexus. Under it, MATRADE officers based overseas will guide Malaysian businesses on the country’s halal ecosystem, promote recognition of international certification and market halal exports.

The regional goal

The Deputy Prime Minister has proposed launching an ASEAN Halal Council in Malaysia in September 2027. Malaysia is prepared to host the secretariat, subject to member states’ agreement, and Indonesia is proposed as inaugural chair. The proposal has gone to the ASEAN Secretariat and is due before the ASEAN Summit for endorsement. He describes it as a building block toward a proposed World Halal Development Council.

The market logic is straightforward. ASEAN has more than 250 million halal consumers, by his count, and global Muslim consumer spending is projected to reach about US$3.56 trillion by 2029. The Deputy Prime Minister said the regional body should have a clear mandate and concrete priorities, and be judged by fewer barriers and easier market access.

The October meeting should supply the first detail: a published agenda or terms of reference, initial workstreams on certification, and a timetable for the ASEAN proposal. For Malaysian halal exporters and the agencies that back them, it will show how quickly a shared framework can translate into shorter paths to a large market.