Building an integrated halal economy through RI's D-8 chairmanship

Jakarta (ANTARA) - Global demand for halal products continues to grow as the Muslim consumer market expands, yet the global halal ecosystem remains fragmented.

Supply chains spanning raw materials, manufacturing, certification, logistics, and distribution remain only partially integrated, limiting trade, investment, and value creation across the halal economy.

Addressing that fragmentation is a key objective of the D-8 Halal Expo Indonesia (HEI) 2026, held at Jakarta's Indoor Tennis Stadium in the Senayan sports complex from July 8 to 12.

As chair of the Developing Eight (D-8) for 2026-2027, Indonesia is using the expo to strengthen economic cooperation among member states.

Held under the theme "Strengthening the D-8 Halal Economy Through International Collaboration," the expo brings together businesses, investors, regulators, and research institutions to expand cooperation across the halal economy.

The five-day event features trade exhibitions, business matching sessions, panel discussions, and business meetings involving D-8 members and partner countries.

The Developing Eight is an economic cooperation group of developing countries established in Istanbul, Turkey, on June 15, 1997, to promote trade, investment, and economic development among its members. Its founding members were Indonesia, Malaysia, Turkey, Iran, Pakistan, Bangladesh, Egypt, and Nigeria. Azerbaijan became its ninth member in late 2024.

Collectively, D-8 countries represent about 1.3 billion people, or 16 percent of the world's population, with a combined gross domestic product of roughly US$5.1 trillion. That economic scale provides a strong foundation for expanding trade, investment, and industrial cooperation.

The D-8 aims to increase trade among its members to US$500 billion by 2030. The halal economy is central to that goal, spanning value-added sectors including food and beverages, cosmetics, pharmaceuticals, fashion, tourism, Islamic finance, and digital services.

Deputy Foreign Affairs Minister Anis Matta said Indonesia wants the D-8 to play a larger role in the global halal economy by deepening economic integration across the Muslim world. The expo is intended to promote business partnerships, investment, and knowledge exchange among member states.

The expo also reflects Indonesia's commitment to strengthening the global halal value chain, in line with President Prabowo Subianto's call at the 11th D-8 Summit in Cairo in December 2024 for stronger halal economic networks and a greater role for Indonesia as a global halal hub.

Ary Aprianto, director for socio-cultural affairs and strategic partnerships at the Foreign Affairs Ministry's Directorate General of Multilateral Cooperation, said the expo aims to strengthen halal supply chains from upstream to downstream, covering raw material supply, industrial estates, logistics, distribution, capacity building, and technology exchange.

Competitiveness in the halal industry depends not only on finished products but also on efficient, integrated supply chains.

Value chain integration

Strengthening halal supply chains involves more than expanding production capacity. It also requires D-8 members to build more connected trade systems.

Halal products require end-to-end traceability, from raw material sourcing to consumers, supported by harmonized certification processes and trade infrastructure.

D-8 Secretary-General Sohail Mahmood said member states should gradually develop integrated halal trade corridors through harmonized standards and mutual recognition of halal certification.

He said such efforts should be supported by interoperable digital certification systems, streamlined trade procedures, and the development of halal logistics to improve cross-border trade efficiency.

The need for greater integration is evident in strategic industries such as halal gelatin, where supplies remain constrained because much of global gelatin production relies on non-halal sources.

Alternative sources, including fish waste-based gelatin, could create new opportunities for downstream processing and cross-border investment among D-8 members.

The expo has already opened discussions on such cooperation. Indonesia's Foreign Affairs Ministry said Indonesia and Pakistan are exploring halal gelatin production, while companies from Iran have held talks with Bio Farma and Padjadjaran University, and a Bangladeshi company has engaged with ID Food.

Harmonizing halal standards

Beyond industrial capacity, standardization is critical to expanding the halal market. Ahmad Haikal Hasan, head of Indonesia's Halal Product Assurance Agency (BPJPH), called for a more connected global halal standard to improve the international competitiveness of products from Muslim-majority countries.

D-8 members have already agreed to mutually recognize halal certification. However, broader harmonization remains challenging because national certification systems and regulations still differ.

Aligning those rules would reduce repeated compliance barriers for businesses entering new markets.

For Indonesia, greater interoperability of halal standards would expand market access for domestic products. More consistent standards would also create broader opportunities for local industries, including small and medium-sized enterprises, to participate in cross-border trade.

The halal economy is also expanding beyond food. Pharmaceuticals, cosmetics, fashion, digital technology, and sustainability-driven innovation are becoming increasingly important sectors.

Mahmood urged D-8 members to strengthen research and innovation through halal industrial zones, biotechnology, artificial intelligence-based traceability systems, and green manufacturing.

Strengthening economic cooperation

Reaching the D-8's target of US$500 billion in intra-group trade by 2030 will require concrete steps to accelerate economic integration.

Trade among D-8 members currently stands at around US$150 billion to US$160 billion, leaving substantial ground to cover. Stronger cross-border investment, industrial connectivity, and lower trade barriers will be essential to expanding regional economic activity.

Indonesia has previously advanced D-8 economic cooperation through the D-8 Preferential Trade Agreement, signed during its 2006-2008 chairmanship. Since the agreement entered into force in June 2024, Indonesian exporters have utilized it for exports worth around US$36.4 million.

Through the 2026 expo, Indonesia is broadening that approach from product-based trade to industrial connectivity. The participation of businesses, investors, and institutions from multiple countries reflects a growing recognition that the halal economy depends on integrated production, innovation, and investment networks.

The expo's significance extends beyond its five-day program. It marks a starting point for bringing together trade, investment, innovation, and halal standardization within a more integrated ecosystem.

Sustaining that momentum throughout Indonesia's chairmanship could help the D-8 strengthen its position as a major player in the global halal economy.

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