Digital Transformation Key to Indonesia’s Halal Economy Growth, Says Industry Leader

At the recent 6th Indonesia International Halal Lifestyle Conference (INHALIFE) 2024 in Jakarta, Irshad Cader, CEO of Globothink, addressed the transformative role of digital technology in empowering Indonesia’s small and medium-sized enterprises (MSMEs) within the growing halal industry. Speaking to an audience of industry leaders, government officials, and digital experts, Cader highlighted the pressing need for Indonesia’s halal businesses to embrace digital solutions to compete in a $2.29 trillion global market that encompasses not only food but also fashion, pharmaceuticals, and tourism.

With over 64 million MSMEs contributing 61% of Indonesia’s GDP, Cader noted their crucial role in the economy, especially as they employ nearly 120 million people. However, only a limited number of these businesses have integrated digital tools into their operations, a gap that hinders their global market reach. Cader emphasized that digital transformation, including e-commerce platforms and digital payment systems, is essential for halal-certified businesses seeking transparency and consumer trust. The conference underscored that Indonesia’s digital economy, valued at $70 billion in 2021, is expected to double by 2025, signaling both a challenge and an opportunity for MSMEs.

During his presentation, Cader outlined key challenges faced by MSMEs, including limited resources, access to ICT infrastructure, and the need for enhanced workforce skills. He called for structured support from government and financial institutions to aid MSMEs in establishing a digital presence and building competencies in e-commerce and social media marketing. “Digital tools are essential for halal MSMEs to expand their reach, engage customers, and stay competitive,” Cader stated, urging businesses to focus on consumer engagement and traceable halal certifications.

In closing, Cader recommended strategic initiatives, such as registering halal businesses in international chambers to connect with global markets and leveraging social media to engage younger, halal-conscious consumers. His insights contributed to the conference’s broader theme of “Capitalizing on Global Trends: Digitalization and Technology Transformation in the Halal Industry,” reinforcing the importance of innovation in advancing Indonesia’s position in the halal economy.

Cader’s address echoed INHALIFE 2024’s mission to make digitalization a central focus for Indonesia’s halal MSMEs, ultimately enabling them to thrive in the competitive global landscape.