The study highlights the economic factors that can increase intra-industry trade (IIT) of halal food products in ASEAN. Focusing on Indonesia, the largest market for halal products in the grouping after Malaysia, this study finds that Indonesian halal food products for trade have a competitive advantage over other ASEAN countries. However, the regression model with panel data shows that there has also been an increase in industrial production in the country’s trading partners. This research provides a new perspective on the future of regional economic cooperation, especially in the form of halal product intra-trade among ASEAN member states. It contributes to the literature on the regional halal market by including data exclusively for a halal category, which has not been explored before. Moreover, it offers suggestions to Indonesian halal trade policymakers on possible ways of expanding operations both regionally and internationally.