KUALA LUMPUR — In a landmark move for Southeast Asia’s booming Islamic economy, Malaysia and Indonesia have formally established a joint halal council designed to harmonize their respective certification regimes. This significant development comes at a critical juncture as both nations are actively tightening their regulatory frameworks for halal products.
The announcement was made by Malaysia’s Deputy Prime Minister on September 25 during the prestigious Global Halal Summit, which was held alongside the widely attended Malaysia International Halal Showcase in Kuala Lumpur. The newly formed council represents the most concrete, actionable step yet taken toward realizing a unified regional halal body for the Association of Southeast Asian Nations (ASEAN).
Under the agreed-upon leadership structure, Indonesia’s Halal Product Assurance Organizing Agency, commonly known as BPJPH, will chair the council. Meanwhile, Malaysia will assume the crucial role of secretary-general, with the Department of Islamic Development Malaysia, universally recognized as JAKIM, expected to serve as the administrative secretariat. The inaugural meeting of the council is scheduled to take place in October. The stated purpose of this high-level bilateral body is to facilitate mutual certification recognition and systematically reduce duplicate administrative procedures that have historically added time and cost for cross-border traders.
Building on Momentum from 2023
The establishment of the joint council does not start from a blank slate; rather, it builds heavily upon bilateral cooperation agreements established in recent years. In 2023, BPJPH and JAKIM signed a memorandum of understanding recognizing each other’s halal certificates for domestic products. Under that framework, each agency was formally listed as a recognized certification body within the other’s market. At the time of signing, JAKIM noted that certified Malaysian products and official logos would be permitted to enter the Indonesian market without unnecessary restriction.
That vital memorandum has been extended to run through June 2029. Furthermore, intensive negotiations regarding the practical facilitation of certification and bilateral trade officially concluded in June, paving the way for both countries to begin accepting each other’s halal logos.
The economic stakes are undeniably high. Trade figures highlight the vast scale of commercial exchange between the two neighbors. Between 2021 and 2023, Malaysia shipped approximately RM7.77 billion worth of halal-certified products to Indonesia. Moreover, Malaysia’s incoming ambassador to Indonesia has estimated total annual halal-related trade between the two economies to be between US$2 billion and US$3 billion, underscoring the vital importance of removing friction at the border.
Tackling Administrative Hurdles and Supporting Small Enterprises
When announcing the formation of the council, Malaysia’s Deputy Prime Minister emphasized that its primary mission will be to address differing halal requirements, eliminate repeated procedures, and alleviate the unique difficulties that businesses frequently encounter when attempting to enter a neighboring market. In his framing, ultimate success will be measured by fewer regulatory barriers, smoother market access, and a higher volume of companies successfully trading across borders.
A significant portion of this diplomatic and regulatory effort is intentionally focused on supporting smaller producers. Currently, only about 14.7 percent of Malaysia’s halal-certified companies are engaged in exporting, even though the broader halal sector accounts for roughly 11 percent of the nation’s gross domestic product. Malaysia has set an ambitious target of reaching approximately RM80 billion in halal exports by 2030. To achieve this goal, small- and medium-sized manufacturers require a much clearer route to overseas buyers and targeted institutional support in successfully fulfilling their very first export orders.
Navigating complex bureaucratic procedures is precisely where this institutional support will matter most. Under current policies, Indonesia officially exempts imports certified by a foreign body that holds a recognition agreement from undergoing separate national certification. However, the regulation still requires the foreign certificate to be formally registered through BPJPH’s online digital system, a process that can take up to 20 working days. On the other hand, Malaysia permits a formal halal description on imported goods provided they are certified by a body officially recognized by JAKIM, with that specific body’s name clearly marked on the product packaging.
Establishing a standing forum for both regulatory agencies provides a natural venue for aligning these operational steps. While neither government has yet specified which particular procedures will be prioritized during the initial discussions, the institutional mechanism is now in place to tackle them.
Complementary Strengths and Strategic Visions
The division of labor within the newly formed council reflects the complementary nature of the partnership as presented by government officials. According to Malaysia’s Deputy Prime Minister, Malaysia contributes decades of deep-rooted experience in international standards, rigorous governance, and sophisticated trade facilitation. In contrast, Indonesia contributes massive market scale, expansive domestic production capacity, and vibrant entrepreneurial energy.
The head of BPJPH struck a similarly expansive note during the summit, describing halal standards not merely as a religious requirement, but as a universal benchmark of transparency, supply chain traceability, and superior quality that ultimately serves all consumers. He praised Malaysia as a natural partner given its extensive, decades-long history in the sector, noting that the bilateral council serves as a vital stepping stone toward a broader ASEAN council. He also reiterated Indonesia’s long-term national ambition to establish itself as a premier global halal hub.
Adapting to Indonesia’s Changing Regulatory Landscape
The timing of this bilateral alignment is particularly notable given the dynamic regulatory shifts currently underway in Indonesia. The country’s firm halal certification deadline for imported food, beverages, and slaughtered products is fast approaching on October 17, 2026. Adding to this regulatory environment, a BPJPH regulation signed in August introduces a mandatory pre-shipment conformity check for imports, which must be conducted by an authorized inspection body directly at the loading warehouse. BPJPH officially named four qualified inspection bodies to handle these duties on September 10.
While officials have not yet confirmed whether these specific regulatory developments are formally on the agenda for the upcoming October council meeting, the arrival of a standing, cooperative channel between the two agencies provides immense added value during a complex transitional period. For Malaysian exporters navigating these shifting rules, having a direct line of communication between regulators offers a vital safety net.
Commercial Support and the Regional Horizon
Malaysia is intentionally pairing this high-level diplomatic and regulatory track with direct, on-the-ground trade support for its business community. During the same summit, the Malaysia External Trade Development Corporation and JAKIM formally exchanged letters of intent concerning the Malaysia Halal Global Nexus initiative. Under this program, trade officers stationed at MATRADE offices overseas will actively guide Malaysian businesses through the intricacies of the country’s halal ecosystem, promote the international recognition of local certification, and aggressively market halal exports abroad.
Looking beyond bilateral ties, the broader regional goal remains ambitious. Malaysia’s Deputy Prime Minister has officially proposed launching an ASEAN Halal Council in Malaysia in September 2027. Under the proposal, Malaysia stands fully prepared to host the permanent secretariat—subject to the formal agreement of all member states—while Indonesia has been proposed as the inaugural chair. The proposal has already been formally submitted to the ASEAN Secretariat and is slated to come before the upcoming ASEAN Summit for official endorsement. The Deputy Prime Minister describes this initiative as an essential building block toward an even larger vision: a proposed World Halal Development Council.
The underlying market logic supporting these grand regional ambitions is straightforward. By official estimates, the ASEAN region is home to more than 250 million halal consumers, while global Muslim consumer spending is projected to reach approximately US$3.56 trillion by 2029. Highlighting the pragmatic urgency behind the initiative, the Deputy Prime Minister emphasized that any regional body must maintain a clear mandate, establish concrete priorities, and be judged purely by tangible results—specifically, the reduction of trade barriers and the creation of easier market access for businesses of all sizes.
The upcoming ministerial and agency meetings in October are expected to supply the first concrete details of this partnership, including a published agenda, clear terms of reference, initial workstreams dedicated to certification alignment, and a firm timetable for the broader ASEAN proposal. For Malaysian halal exporters and the government agencies tasked with supporting them, these upcoming sessions will demonstrate just how quickly a shared diplomatic framework can translate into shorter, smoother pathways into one of the world’s largest consumer markets.