Halal industry as Indonesia’s new economic engine: The role of Mutual Recognition Agreements

Evita Manthovani (Senior Advisor on Productivity Enhancement and Economic Competitiveness, Coordinating Ministry for Economic Affairs, Jl. Lapangan Banteng No. 2-4, Jakarta, 10710, Indonesia Bureau of Performance Management and Cooperation, Coordinating Ministry for )
Frendy Ahmad Afandi (Bureau of Performance Management and Cooperation, Coordinating Ministry for Economic Affairs, Jl. Lapangan Banteng No. 2-4, Jakarta, 10710, Indonesia)
Susi Susyanti (Bureau of Performance Management and Cooperation, Coordinating Ministry for Economic Affairs, Jl. Lapangan Banteng No. 2-4, Jakarta, 10710, Indonesia)
Dias Indrasti (Department of Food Science and Technology, IPB University, IPB Dramaga Campus, Bogor, 16680, Indonesia Halal Science Center, International Research Institute for Food, Nutrition and Health, IPB University, IPB Baranangsiang Campus, Bogor, 16143, Ind)
Lili Indriyani (Bureau of Performance Management and Cooperation, Coordinating Ministry for Economic Affairs, Jl. Lapangan Banteng No. 2-4, Jakarta, 10710, Indonesia)
Gita Permatasari (Bureau of Performance Management and Cooperation, Coordinating Ministry for Economic Affairs, Jl. Lapangan Banteng No. 2-4, Jakarta, 10710, Indonesia)
Nichanan Khankasikam (Institute of Future Studies for Development, Bangkok, Thailand)

Halal Studies and Society
Vol. 2 No. 3 (2025): September 2025

The acceleration of halal certification is a strategic policy issue in the global Islamic economy during the rise of cross-border demand for halal products. Only 28.8% of food and beverage enterprises in Indonesia had obtained halal certification as of February 11, 2025, despite the country’s strategic position in the global market. Therefore, this study aims to examine the role of Mutual Recognition Agreements (MRA) in facilitating halal certification with a particular focus on food and beverage products through regulatory harmonization. MRA documents and international halal regulatory frameworks are analysed using an empirical qualitative method, supported by semi-structured interviews with halal certification stakeholders. The results suggest that MRA is expected to streamline procedures, avoid duplication, and improve efficiency, particularly in cross-border certification. However, the effectiveness is constrained by differences in Sharia interpretation, uneven testing infrastructure, and coordination challenges. MRA can support more efficient halal certification when reinforced by institutional capacity building and digitalized certification systems.