PETALING JAYA: Malaysia-Indonesia bilateral trade is projected to grow by 10% this year to US$29.3bil (RM119.25bil), supported by expanding cooperation in the halal sector and stronger market access between the two countries.
Malaysia’s Chargé d’Affaires in Indonesia Farzamie Sarkawi said the projected growth reflects stronger bilateral halal cooperation, which has expanded collaboration in trade, investment and human capital development over the past three years.
He said the cooperation established under a bilateral memorandum of cooperation or MoC on halal signed in 2023 has created greater opportunities for both countries to deepen collaboration across various sectors.
“This includes cooperation in trade, investment and human capital through the exchange of expertise, training and other initiatives,” he told Bernama in Jakarta.
Since its implementation, Farzamie said the bilateral cooperation has made positive progress, with the mutual recognition of halal certification between Malaysia and Indonesia facilitating the movement of products and improving market access for businesses in both countries.
With total trade reaching US$26.61bil in 2025, up 5.3% from the previous year, he said the strong bilateral trade performance reflected positive progress in cooperation and provides a solid foundation for further growth this year.
Throughout last year, he said trade in halal-related food and beverage products remained robust, with Malaysia’s processed food exports to Indonesia rising 18.5% year-on-year to US$640mil, driven by cocoa powder, non-dairy creamer, filled milk, chocolate products and flavouring preparations.
Meanwhile, Malaysia’s imports of processed food from Indonesia increased 10.8% in 2025 to US$840mil, led by coconut milk, cocoa paste, instant noodles and rice vermicelli, he said.
Farzamie said Indonesia also remained a major supplier of halal-related raw materials and ingredients to Malaysia, with imports of palm oil-based manufactured products reaching US$2.34bil and palm oil and palm oil-based agricultural products amounting to US$1.14bil.
