Indonesia, with its robust Islamic economy and burgeoning halal industry, is setting its sights on becoming a global leader in this sector. As the Dinar Standard report projects Muslims worldwide to spend up to USD 2.8 trillion on halal products by 2025, Indonesia is strategically positioning itself to capitalize on this growing trend. Bank Indonesia’s estimations suggest that key sectors of the Halal Value Chain (HVC) within the country, such as agriculture, halal food and beverages, Muslim fashion, and Muslim-friendly tourism, are predicted to grow by 4.5% to 5.3% in 2023, contributing more than a quarter of the national economy.
Minister of Industry Agus Gumiwang Kartasasmita underscored the increasing influence of the Islamic economy and the halal industry, citing factors such as the substantial Muslim population, growing awareness of Islamic ethical values, and focused national strategies. Addressing an audience at the Halal Industry Product Exhibition in Jakarta on May 9th, the Minister emphasized Indonesia’s position as home to a population of 241.7 million Muslims, representing 87% of the nation’s total population. Projections indicate that Indonesian Muslims’ expenditure on halal products and services will surge by 14.96% to reach USD 281.6 billion by 2025, positioning Indonesia as the world’s largest consumer of the halal market.
As a testament to Indonesia’s commitment to this endeavor, the country currently ranks fourth globally in Sharia economic indicators. Minister Agus Gumiwang Kartasasmita highlighted the necessity of steering Indonesian consumers towards utilizing domestically produced halal goods and services, thereby enhancing the nation’s role in the global halal industry.
Despite global economic challenges, Indonesia’s non-oil and gas processing sector demonstrated a growth rate of 4.67% in the first quarter of 2023. With the manufacturing industry remaining a significant contributor to national economic growth, this performance is expected to generate increased value for the domestic halal industry.
The Ministry of Industry is unwavering in its dedication to the halal program, evident in its efforts to strengthen halal industry infrastructure, implement the Halal Product Guarantee System (SJPH), and provide incentives for the halal industry. Collaborative efforts among relevant agencies are deemed essential for the successful execution of this endeavor.
To solidify this commitment, the Ministry of Industry introduced the Halal Industry Empowerment as part of the National Industrial Policy, supported by the Presidential Regulation number 74 of 2022. The policy outlines a multifaceted approach encompassing policies, infrastructure, recognition agreements, education, campaigns, and industry festivals, aimed at advancing the halal industry.
Drawing on its experience in implementing the Indonesian National Standard (SNI) for various sectors, the Ministry of Industry anticipates playing a pivotal role in the Halal Product Assurance System (SJPH). To support industry players, the Ministry has established the Halal Industry Data Collection Information System (SALIHA), streamlining the selection process for halal industry certification assistance.
As part of its holistic approach, the Ministry has initiated the establishment of the Halal Inspection Agency (LPH), with 13 accredited LPHs currently operational across Indonesia. This network is set to expand, offering wider coverage and support to communities.
In line with this mission, the 2023 Halal Industry Product Exhibition showcases 14 small industries, recipients of Halal Certification Facilitation, along with 16 IHYA award recipients and 13 Halal Inspection Agencies. This event serves not only as a platform to present superior halal products but also to foster an understanding of the halal industry’s broader concept, while offering opportunities for businesses to become integrated within the global halal industry supply chain.
With this concerted effort, Indonesia is poised to position itself as a frontrunner in the world of halal industry, capitalizing on its vast Muslim population and strategic initiatives to lead the way in this burgeoning economic sector.
