Indonesia is seeking to strengthen partnerships with Middle Eastern countries to enhance the global halal ecosystem, aiming to combine its production strengths with the region’s market access and investment opportunities, according to officials from Indonesia's Ministry of Trade.
As Southeast Asia’s largest economy and the world’s most populous Muslim-majority country, Indonesia is positioning itself as a global halal hub by 2029. The country currently ranks fourth in the Global Islamic Economic Indicator, following Malaysia, the United Arab Emirates (UAE), and Saudi Arabia. Recent policy measures include promoting Muslim-friendly tourism and the introduction of mandatory halal certification starting October 2026, reflecting the government’s commitment to expanding the sector.
Fajarini Puntodewi, director-general of national export development at the Ministry of Trade, said Indonesia views the halal economy as a key driver for sustainable economic growth and international cooperation. She emphasized the potential benefits of linking Indonesia’s manufacturing capacity with the Middle East’s robust halal market and investment landscape. “There are significant opportunities to build more integrated and sustainable halal value chains,” she stated.
Trade data indicate steady growth in Indonesia’s exports to the Middle East, with a 17 percent annual increase over the past five years, reaching nearly $9.9 billion in 2025. To capitalize on this momentum, Indonesian officials have actively promoted halal products through international exhibitions, business forums, and matchmaking programs aimed at strengthening ties between Indonesian firms and Middle Eastern partners.
Jakarta maintains trade offices in key Middle Eastern cities, including Indonesian Trade Promotion Centers in Jeddah and Dubai, as well as trade attachés in Riyadh and Cairo. Puntodewi highlighted shared interests between Indonesia and the Middle East in areas such as food security, manufacturing, modest fashion, cosmetics, and sustainable industries—sectors where Indonesia possesses considerable expertise and growth potential.
Private sector leaders echoed this outlook on bilateral economic collaboration. Asjad Rasjid, founder and chairman of Sriwijaya Capital, noted that while the Gulf Cooperation Council (GCC) currently accounts for approximately 3 percent of Indonesia’s non-oil exports, there is significant potential for expansion in both trade and investment. Rasjid pointed to complementarity in economic resources: the GCC supplies energy and industrial inputs that Indonesia lacks, while Indonesia provides palm oil, processed foods, and manufactured goods that are scarce in the Gulf countries.
Furthermore, Rasjid observed that economic diversification initiatives across GCC states open new avenues for investment partnerships with Indonesia. These developments suggest that as both regions pursue growth beyond traditional sectors, their cooperation could deepen, fostering a more integrated halal economy on the global stage.