Malaysia Sees Strong Potential To Expand F&B Trade With Indonesia -- Envoy
By Nik Nurfaqih Nik Wil
JAKARTA, Nov 4 (Bernama) -- Malaysia sees strong potential to expand bilateral trade with Indonesia in the food and beverage (F&B) sector, particularly through greater participation by Malaysian small and medium enterprises (SMEs) in the Indonesian market.
Malaysia’s Ambassador-designate to Indonesia Datuk Muzafar Shah Mustafa said the sector offered wide-ranging opportunities, particularly as Indonesia placed greater emphasis on halal labelling and certification, calling on Malaysian SMEs to capitalise on the growing market potential.
He said the recently established Malaysia-Indonesia Halal Council could serve as a platform to facilitate greater participation by Malaysian companies in Indonesia’s food market.
“Many Malaysian companies already have halal certification, and this presents a good opportunity for them to explore the Indonesian market, particularly for halal-certified food products,” he told Bernama at the SIAL F&B exhibition in Jakarta on Wednesday.
Muzafar said 14 Malaysian companies were participating in this year’s exhibition, comprising nine SMEs from Sabah and five companies from other parts of Malaysia, to showcase their F&B products and explore opportunities in the Indonesian market.
He also officiated the Sabah Pavilion, which brought together the nine Sabah-based SMEs to promote their products and strengthen their presence in the Indonesian market.
Meanwhile, Malaysian Embassy in Jakarta Minister Counsellor (Trade) and Malaysia External Trade Development Corporation (MATRADE) in Jakarta trade commissioner Suresh Kumar R Palasanthiran said processed food was Malaysia’s fifth-largest export category to Indonesia in 2025, valued at US$640 million (US$1=RM4.07), an increase of 18.5 per cent from the previous year.
He said Malaysia’s processed food imports from Indonesia also rose 10.8 per cent to US$740 million, bringing total bilateral trade in the category to approximately US$1.38 billion.
“Both exports and imports increased compared with the previous year. Both sides recorded growth,” he said, highlighting the positive performance of processed food trade.
Suresh said Malaysia’s major processed food exports to Indonesia included cocoa powder valued at US$140 million, non-dairy creamer and filled milk at US$50 million each, as well as chocolate blocks, food flavourings and sweet biscuits.
He said Malaysia’s established food processing capabilities, product quality and halal certification are key advantages in expanding its presence in international markets.
Suresh said closer cooperation on halal certification could further facilitate market access for Malaysian food producers in Indonesia.
On overall bilateral trade, he said Malaysia and Indonesia recorded US$20.25 billion between January and August 2026, up 9.4 per cent from the corresponding period last year.
Malaysia’s exports to Indonesia rose 17.3 per cent to US$9.69 billion (RM38.88 billion), while imports from Indonesia increased 3.1 per cent to US$10.57 billion (RM42.37 billion).
“Despite the many geopolitical tensions and regulatory changes, trade is still continuing. We remain optimistic about next year,” he said.
-- BERNAMA