Indonesia Races to Close 20-Year Gap with Malaysia in Global Halal Leadership
Haikal Ahmad Hasan, director of the Halal Product Assurance Organizing Agency (BPJPH), announced the government’s objective to establish Indonesia as a global halal center coinciding with the complete implementation of mandatory halal certification in 2026.
Haikal delivered these remarks at the International Halal Symposium entitled “Halal Beyond Compliance: A Strategic Pathway to Global Leadership,” convened at Menara Syariah, Pantai Indah Kapuk (PIK) 2, Banten, on Wednesday (21/1).
He characterized the mandatory halal policy as an essential measure for unleashing the enormous potential of Indonesia’s halal economy, valued at thousands of trillions of rupiah. Following the introduction of compulsory halal certification, certification figures have increased substantially.
The agency has successfully processed up to eleven million halal certifications. Haikal emphasized this represents not merely an accomplishment but demonstrates how halal principles have become deeply embedded within Indonesia and gained widespread acceptance.
Currently, Indonesia processes approximately ten thousand halal certificates daily. Nevertheless, among roughly sixty million micro, small and medium-sized enterprises (MSMEs), only about three million have entered the halal certification framework.
This participation rate remains quite limited. However, achieving just thirty percent coverage would bring halal transactions close to IDR 6,800 trillion, according to Dinar Standard’s data.
The government aims to achieve halal certification for thirty million MSMEs by 2026, representing approximately half of all MSMEs nationwide, as the halal requirement becomes universally mandatory.
Enormous effort will be required throughout 2026. While the target is ambitious, it demands pursuit.
Based on calculations from the National Committee for Islamic Economics and Finance (KNEKS), the halal value chain’s contribution in 2025 approached 27% of Indonesia’s gross domestic product.
This contribution encompasses multiple sectors including food and beverages, pharmaceuticals, cosmetics, consumer goods, along with textiles and personal care items such as soap, shampoo and toothpaste.
Internationally, Indonesia has adopted an increasingly proactive approach to establishing strategic positioning. Through various international platforms, from the Kazan Forum to gatherings in Singapore, Malaysia, the United States and South Africa, Indonesia has vigorously promoted its national halal framework.
In South Africa, Indonesia received unanimous designation as a benchmark for international halal standards.
Indonesia is presently developing global halal standards intended to harmonize the diverse international standards currently operating.
The aspiration involves establishing Indonesia’s framework as the worldwide standard. While the official ambition extends to 2029, efforts are focused on achieving this by 2026.
Haikal recognized that Indonesia still trails several other nations. Malaysia, for instance, has operated a halal system since the 1980s, while the United States established halal institutions in 1974.
Malaysia maintains a twenty-year advantage. The United States currently holds the third position globally. Brazil occupies second place, with China holding the leading position.
China has approached the global halal market with considerable seriousness, emerging as a principal exporter of halal products to Muslim-majority nations.
This indicates the twenty-year deficit must be eliminated within five years. The objective positions Indonesia as the world’s number one by 2029.
With a nationwide halal mandate, accelerating MSME certification, and aspirations to establish global halal standards, the government maintains confidence that Indonesia will function not merely as a market but as a central participant in the global halal economy.
Source:
IDN Financials. (2026). Haikal Ahmad: Malaysia implemented halal systems 20 years earlier. IDN Financials.
https://www.idnfinancials.com/news/60595/haikal-ahmad-malaysia-implemented-halal-systems-20-years-earlier


