DHow Halal Industry Development Drives a Sustainable Sharia Economy

Indonesia is making waves in the global halal market, positioning itself as a frontrunner in halal food production and fashion. Climbing from 4th to 2nd place in the State of the Global Islamic Economy (SGIE) rankings underscores its rapid progress. The development of the halal industry is the key to a sustainable Sharia economy, and Indonesia is boldly leading the charge.

Doni P. Joewono, Deputy Governor of BI, lays out three pivotal strategies to bolster Indonesia’s standing in the halal industry. Firstly, by ramping up halal food exports to Organization for Islamic Cooperation (OIC) member countries, Indonesia can fortify its global presence. Secondly, implementing a halal product codification system and digitizing halal certification processes streamline operations and enhance credibility.

Joewono highlights the transformative potential of the halal sector, transcending mere industry status to become a catalyst for economic empowerment, job creation, and sustainable development.

To materialize this vision, Bank Indonesia, alongside relevant institutions, has crafted the Master Plan for Indonesian Halal Industry Products (MPIHI) 2023-2029. This blueprint serves as a roadmap for policy formulation, program implementation, and progress monitoring within Indonesia’s halal industry landscape.

Joewono advocates for three key strategies to expedite industry growth. Firstly, comprehensive digitalization spanning from production to distribution fosters a seamless digital ecosystem, driving growth via online platforms. Secondly, effective planning backed by accurate data availability lays the groundwork for successful halal ventures. Lastly, synergy and collaboration among government entities, sharia business stakeholders, and community groups are essential for propelling Indonesia’s halal industry forward.

In a show of commitment, Deputy Governor Joewono, alongside key figures from the Indonesia Halal Lifestyle Center (IHLC) and Dinar Standard, unveiled two significant publications: The Indonesian Halal Market Report and the Sustainable Fashion Book. This initiative, supported by Bank Indonesia, aims to elevate standards in the halal fashion sector, promising better quality and sustainability.

Furthermore, Bank Indonesia, in collaboration with the Hajj Financial Management Agency (BPKH), is spearheading the digital transformation of Hajj management. Through the development of comprehensive Hajj service super apps, Indonesia aims to create a digital ecosystem that accelerates growth not only within the Hajj sector but also across other Sharia financial-related industries. This ambitious endeavor, focusing on the development of the halal industry as the key to a sustainable Sharia economy, holds the promise of greater efficiency and accessibility for pilgrims while bolstering Indonesia’s leadership in the global halal landscape.