Malaysia, Indonesia Establish Joint Halal Council

Malaysian Deputy Prime Minister Ahmad Zahid Hamidi announced the establishment of the Malaysia-Indonesia Halal Council to bolster halal diplomacy between the two nations. The council, led by Indonesia's Halal Product Assurance Organizing Agency (BPJPH), will have Malaysia as its secretary-general, with a planned inaugural meeting in October 2026. The primary objective is to streamline halal certification and bilateral trade, as reported by BERNAMA.

Ahmad Zahid highlighted that Malaysia and Indonesia signed a memorandum of understanding (MoU) on cooperation in 2023, and that negotiations for facilitating halal certification and trade concluded in June 2026. The council aims to identify practical methods to facilitate trade, minimize duplication, and connect companies with regional supply chains. Zahid emphasized that halal diplomacy seeks to leverage existing trust to open markets, foster investment, and create mutual opportunities.

The Malaysian leader expressed the importance of reducing barriers, enhancing market access, and encouraging more companies to engage in cross-border trade. Zahid noted that small producers require a clear path to overseas buyers, and halal-certified companies need support to fulfill their initial export orders. He projected that the halal industry could reach RM80 billion (Rp351 trillion) in exports by 2030.

According to Zahid, the halal industry contributes around 11% to Malaysia's GDP, yet only 14.7% of halal-certified companies are exporters. He stressed the need to assist more companies in competing overseas, stating that certification is merely the starting point. Companies must also focus on consistent production, appropriate packaging, adequate working capital, dependable logistics, and understanding of target markets.