Malaysia’s bilateral trade with Indonesia is projected to grow 10 per cent to US$29.3 billion (US$1 = RM4.07) this year, driven by expanding cooperation in the halal sector and wider market access between the two countries.
Malaysia’s Chargé d’Affaires in Indonesia, Farzamie Sarkawi, said the forecast reflects stronger bilateral collaboration in the halal industry, which has boosted trade, investment and human capital development over the past three years.
He said the halal Memorandum of Cooperation (MoC) signed by both countries in 2023 has created greater opportunities to deepen cooperation across multiple sectors through knowledge exchange, training and other initiatives.
“The partnership has delivered positive progress, particularly through the mutual recognition of halal certification, which has eased the movement of products and improved market access for businesses in both countries,” he said.
Farzamie said the strong momentum follows bilateral trade of US$26.61 billion in 2025, up 5.3 per cent from the previous year, providing a solid foundation for further growth in 2026.
Trade in halal food and beverage products also remained robust last year, with Malaysia’s processed food exports to Indonesia rising 18.5 per cent year-on-year to US$640 million, supported by higher shipments of cocoa powder, non-dairy creamer, filled milk, chocolate products and flavouring preparations.
Meanwhile, Malaysia’s imports of processed food from Indonesia increased 10.8 per cent to US$840 million, led by coconut milk, cocoa paste, instant noodles and rice vermicelli.
Indonesia also remained Malaysia’s key supplier of halal-related raw materials and ingredients, with imports of palm oil-based products reaching US$2.34 billion, while palm oil and palm-based agricultural products totalled US$1.14 billion, supporting Malaysia’s halal food processing, ingredients, cosmetics and personal care industries.
Looking ahead, Farzamie said Malaysia aims to leverage its growing halal partnership with Indonesia to strengthen engagement across the Developing Eight (D-8) bloc following its participation in this year’s five-day D-8 Halal Expo Indonesia.
Led by the Malaysia External Trade Development Corporation and Tourism Malaysia, Malaysia’s participation sought to connect the country’s halal capabilities with opportunities across D-8 markets.
He said the expo served as a platform to strengthen halal trade, investment, business networking and the regional halal value chain among D-8 member states.
Farzamie noted that intra-D-8 trade currently stands at between US$150 billion and US$160 billion annually, with the bloc targeting US$500 billion by 2030 through deeper economic cooperation, including stronger integration of the halal industry.
