KUALA LUMPUR — In a landmark move that marks the most concrete step yet toward a unified regional halal framework in Southeast Asia, Malaysia and Indonesia have established a joint halal council. The initiative, announced as the two largest halal economies in the region are tightening their respective certification regimes, is designed to ease the cross-border passage of certified products and eliminate costly, time-consuming procedural redundancies.
Malaysia’s Deputy Prime Minister formally announced the creation of the council on September 25 during the Global Halal Summit, a high-profile event held alongside the Malaysia International Halal Showcase. Under the agreed-upon leadership structure, Indonesia’s Halal Product Assurance Organizing Agency, widely known as BPJPH, will chair the newly formed council. Meanwhile, Malaysia will assume the secretary-general role, with the Department of Islamic Development Malaysia (JAKIM) expected to act as the primary secretariat.
The council’s inaugural meeting is scheduled for October, setting the stage for what officials hope will be a seamless era of mutual certification facilitation. The overarching mandate of the body is clear: to dismantle bureaucratic bottlenecks and reduce duplicate procedures that have historically hindered frictionless trade between the two neighbouring nations.
Building on 2023 Foundations
The newly minted council does not start from scratch. It builds directly upon foundational agreements forged in 2023, when BPJPH and JAKIM signed a crucial memorandum of understanding designed to formally recognize each other’s halal certificates for domestic products. Under that agreement, both agencies were listed as officially recognized certification bodies within each other’s respective markets.
At the time, JAKIM noted that certified Malaysian products and accompanying logos would be granted entry into Indonesia without unnecessary restriction. That bilateral memorandum has since been extended to run through June 2029. Furthermore, intensive negotiations concerning the practical facilitation of certification and trade officially concluded in June, paving the way for both countries to begin accepting each other’s halal logos.
The economic stakes are exceptionally high. Trade in halal-certified goods between the two nations represents a formidable commercial pipeline. Malaysia shipped an impressive RM7.77 billion worth of halal-certified products to Indonesia between 2021 and 2023 alone. Moreover, Malaysia’s incoming ambassador to Indonesia has estimated total annual halal-related bilateral trade to be hovering between US$2 billion and US$3 billion, underscoring the immense value of smoothing regulatory friction.
The Core Agenda: Eliminating Repeated Procedures
When outlining the vision for the council, Malaysia’s Deputy Prime Minister emphasized that its primary target would be the myriad differing halal requirements, repeated administrative procedures, and systemic hurdles that businesses inevitably face when attempting to penetrate a neighboring market. In his framing, true success for the joint council will be measured by tangible metrics: fewer trade barriers, vastly improved market access, and a higher volume of companies successfully trading across borders.
Special emphasis is being placed on smaller and medium-sized producers, who often find international expansion daunting. Statistics indicate that only about 14.7 per cent of Malaysia’s halal-certified companies currently export their goods, even though the broader halal sector accounts for roughly 11 per cent of the national gross domestic product. With Malaysia aggressively targeting approximately RM80 billion in halal exports by 2030, policymakers recognize that small manufacturers need a clearer, more navigable route to overseas buyers, alongside targeted support in fulfilling their first export orders.
Navigating complex regulatory procedures is precisely where this institutional support is expected to matter most. Indonesia currently exempts imports from separate national certification provided they are certified by a foreign body that maintains an active recognition agreement. However, the regulatory framework still mandates that the foreign certificate be formally registered through BPJPH’s online system, a process that can take up to 20 working days.
On the other side of the Malacca Strait, Malaysia permits a clear halal description on imported goods provided they are certified by a body officially recognized by JAKIM, with the certifying body’s name clearly marked on the product. Establishing a standing forum for both JAKIM and BPJPH provides a natural, highly effective venue for aligning these administrative steps. While neither government has yet specified which precise procedures will be prioritized on the agenda for the upcoming October meeting, the existence of the channel itself offers a welcome relief to weary exporters.
Strategic Roles and Collaborative Rhetoric
The division of labor within the joint council reflects a pragmatic partnership that officials are eager to promote. According to the Malaysian Deputy Prime Minister, Malaysia brings decades of deep institutional experience in established standards, rigorous governance, and sophisticated trade facilitation. Indonesia, by contrast, contributes unmatched market scale, immense domestic production capacity, and a vibrant entrepreneurial spirit.
The head of BPJPH struck a broader, more philosophical note during the rollout, describing halal not merely as a religious compliance measure, but as a universal standard of transparency, traceability, and uncompromising quality that ultimately serves all consumers. He praised Malaysia as a natural partner given its extensive historical experience in the sector. Furthermore, he noted that this bilateral council serves as a crucial stepping stone toward realizing a broader ASEAN-wide council, reiterating Indonesia’s grand ambition to firmly establish itself as a central global halal hub.
Navigating Indonesia’s Changing Regulatory Landscape
The timing of the council’s creation is particularly critical given the shifting regulatory sands in Jakarta. Indonesia’s upcoming deadline for mandatory halal certification covering imported food, beverages, and slaughtered products is fast approaching on October 17, 2026. Complicating matters further, a new 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 designated four qualified inspection bodies to handle these checks on September 10.
While officials have not yet clarified whether these specific regulatory developments are formally on the immediate agenda for the council’s first sitting, the timing could not be more vital. For Malaysian exporters navigating this complex transition period, having a dedicated, standing channel of communication between the two dominant regulatory agencies adds immense, immediate value.
Enhancing Commercial Support
Recognizing that diplomatic alignment must be matched by grassroots commercial assistance, Malaysia is pairing the intergovernmental track with robust trade support initiatives. At the very same summit, the Malaysia External Trade Development Corporation (MATRADE) and JAKIM formally exchanged letters of intent regarding the launch of the Malaysia Halal Global Nexus.
Under this new initiative, MATRADE officers stationed strategically overseas will take on an active advisory role, guiding Malaysian businesses through the intricacies of the country’s halal ecosystem, actively promoting the international recognition of Malaysian certification, and aggressively marketing halal exports to foreign buyers.
The Broader Regional Vision
Looking beyond bilateral ties, Malaysia’s leadership has already set its sights on a much larger regional horizon. The Deputy Prime Minister has officially proposed launching an ASEAN Halal Council in Malaysia by September 2027. Under this ambitious proposal, Malaysia stands fully prepared to host the permanent secretariat—subject to the formal agreement of fellow ASEAN 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 high-level endorsement. Proponents describe this initiative as an essential building block toward an even grander vision: a proposed World Halal Development Council.
The underlying market logic driving these diplomatic efforts is straightforward and compelling. According to official figures, the broader ASEAN region is home to more than 250 million halal consumers, while global Muslim consumer spending is projected to skyrocket to approximately US$3.56 trillion by 2029. In championing the regional body, the Deputy Prime Minister has stressed that it must possess a clear mandate, concrete and actionable priorities, and be judged purely by its ability to tear down trade barriers and deliver easier market access.
The upcoming October meeting of the Malaysia-Indonesia joint council is expected to supply the very first details of this grand vision. Observers and industry stakeholders will be closely watching for a published agenda, clear terms of reference, initial workstreams dedicated to certification alignment, and a concrete timetable for the broader ASEAN proposal. For Malaysian halal exporters and the government agencies backing them, the meeting will serve as an immediate test of how quickly a shared diplomatic framework can translate into shorter, smoother paths to one of the world’s largest consumer markets.