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Philippines Turns to Indonesia to Unlock ASEAN’s Halal Market

Philippines Turns to Indonesia to Unlock ASEAN’s Halal Market
A traditional market in the Philippines | public domain

Manila. The Philippines is turning to Indonesia as it seeks wider access to Southeast Asia’s halal market and pushes for greater recognition of halal certificates across ASEAN.

Manila sees Indonesia as the most practical starting point. The country has the world’s largest Muslim population, a large consumer market and one of the region’s most developed halal certification systems.

A recognition agreement could help Philippine food, beverage, cosmetics and pharmaceutical companies enter the Indonesian market without repeating the entire certification process. Philippine officials hope bilateral cooperation could eventually become a model for ASEAN.

“Indonesia already has a lot of experience in this field. We are pursuing a mutual recognition with them, not just to learn from them, but also to begin developing regional standards. We are very much active in working with them to ‘ASEAN-ize’ this effort.”

Denise Cheska C Enriquez, a senior official at the international trade relations bureau of the Philippines Department of Trade and Industry, made the remarks during a discussion with Southeast Asian journalists.

The journalists were visiting the Presidential Communications Office at Malacañang as part of a side event of the 10th ASEAN Media Forum 2026 in Manila. The meeting covered Philippine trade priorities, regional cooperation and the country’s plans for the halal industry.

The Philippines’ interest comes as global demand for halal goods and services continues to rise.

Muslim consumers spent an estimated $2.6 trillion across six major Islamic economy sectors in 2024. Spending is projected to reach $3.56 trillion by 2029, according to the State of the Global Islamic Economy Report 2025/26. The sectors include halal food, pharmaceuticals, cosmetics, modest fashion, Muslim-friendly travel, and media and recreation.

“This halal industry is a very big one, … and it is only continuing to grow. The Philippines definitely wants a piece of that pie,” Cheska said.

The Philippines wants to capture more of that spending by expanding domestic halal production and making it easier for its businesses to export to Muslim markets.

The country already has a sizeable Muslim consumer base. Nearly 7 million people in the Philippines identified Islam as their religion in the 2020 census. Most live in Mindanao, including the Bangsamoro Autonomous Region in Muslim Mindanao.

Under its Halal Industry Development Strategic Plan, the Philippine government wants to position the country as a leading halal hub in the Asia-Pacific region. The strategy covers food, cosmetics, pharmaceuticals, tourism, finance, fashion and logistics.

The Philippines and Indonesia have already been working on a government-to-government arrangement designed to help Philippine exporters comply with Indonesia’s halal product assurance law. The Philippine Department of Trade and Industry previously said the agreement would facilitate trade in halal-certified goods between the two countries.

Why Mutual Recognition Matters

The main challenge is that a halal certificate issued in one country is not automatically accepted in another.

National systems differ in their standards, auditing procedures, religious authorities, documentation and accreditation requirements. An exporter may need another inspection or certificate before selling the same product in a different market.

These repeated procedures increase costs and create delays, particularly for small and medium-sized businesses.

Mutual recognition could simplify the process. An importing country could accept certificates issued by approved halal institutions in a partner country, provided those institutions meet agreed standards.

For such agreements, Cheska said, the more participants, the better.

“[Because it means] the wider market you can access.”

Indonesia’s Halal Product Assurance Organizing Agency, or BPJPH, already maintains cooperation with recognized foreign halal certification institutions.

Its database listed two Philippine certifiers with mutual recognition arrangements covering food and beverages as of early August 2026. BPJPH has also established recognition arrangements with institutions in other ASEAN countries, including Malaysia and Singapore.

No timeline has been announced for a broader agreement between Indonesia and the Philippines. An ASEAN-wide arrangement could take longer because member states follow different legal, administrative and religious systems.

However, Indonesia’s expanding halal rules have increased the urgency for foreign exporters.

Beginning October 18, 2026, Indonesia will implement the next phase of mandatory halal certification. The requirements will cover food and beverages produced by micro and small businesses, along with several other product categories, including cosmetics, household products and selected consumer goods.

Foreign products also need to comply with Indonesia’s halal assurance system to maintain access to the market.

This gives Philippine exporters a strong reason to obtain certification from institutions recognized by BPJPH. Companies using unrecognized certifiers could face additional procedures, costs or delays.

Indonesia matters to the Philippines beyond halal trade.

The two countries recorded total trade of approximately $5.3 billion between January and May 2026. Trade strongly favored Indonesia, which posted a surplus of almost $3.6 billion during the period.

Indonesia was also the Philippines’ second-largest source of imported goods in 2024, accounting for 8.3 percent of Philippine imports, behind China.

A smoother halal certification system could create more room for Philippine exporters in processed food, beverages, ingredients, cosmetics, pharmaceuticals and personal care products.

It could also support Muslim-friendly tourism and logistics services, two sectors that depend heavily on trusted certification and traceable supply chains.

Indonesia could benefit as well. Wider recognition would help its halal producers reach Philippine consumers and use the Philippines as another entry point into regional and international markets.

ASEAN has discussed halal cooperation for years. The region has guidelines for halal food preparation and handling, along with working groups that address standards, accreditation, certification and market access.

What ASEAN still lacks is a comprehensive regional system that enables halal certificates to move easily across all member states.

Creating such a system would require countries to agree on how certification institutions are approved, audited and monitored. Governments would also need ways to exchange certification data, trace products, investigate violations and withdraw recognition when standards are breached.

Religious credibility would remain essential. Consumers would need assurance that mutual recognition does not weaken national safeguards or lower halal requirements.

The initiative also fits ASEAN’s wider goal of increasing trade within the region.

Intra-ASEAN trade accounts for about 21 percent of the bloc’s total trade, according to ASEAN Secretary-General Kao Kim Hourn. He has said a share closer to 35 percent would be more desirable.

Reducing duplicated halal certification could support that ambition by lowering barriers for businesses seeking access to a regional market of nearly 700 million people.

For the Philippines, Indonesia offers both a large target market and a testing ground for deeper regional cooperation.

Success with Jakarta could give Manila a working model to take to other ASEAN countries. It could also move the region closer to a halal market where certification remains credible but borders become easier for businesses to cross.

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