Indonesia Pushed to Lead Global Halal Industry

Indonesia’s Industry Minister, Agus Gumiwang Kartasasmita, has emphasized the necessity for Indonesia to assert itself as the global leader in the halal industry, given the notable strides in the nation’s sharia economy.

“As a major nation with an improving Sharia economy, we must now aim to take the lead globally in the halal sector,” Kartasasmita articulated on Tuesday.

With a Muslim population of 241 million, making up 87% of the total population according to 2022 records, Indonesia is well-positioned to do so. The minister expects a 14.96% increase in Indonesian Muslims’ spending on halal products and services to US$281.6 billion by 2025. This projection would place the nation as the largest consumer of halal products worldwide, accounting for 11.34% of global halal spending.

Kartasasmita acknowledges that the strong growth of the Sharia economy and halal industry results from multiple factors, including a large Muslim population, growing awareness of Islamic values regarding halal products, and national strategies targeting the development of halal products and services.

Bank Indonesia projects sectors of the domestic halal value chain, encompassing agriculture, halal food, and drinks, Muslim fashion, and Muslim-friendly tourism, which will grow 4.5 to 5.3% in 2023, contributing more than 25% to the national economy.

Related: What Is the Role of Media in Promoting the Global Halal Industry?

Fueling Indonesia’s Halal Industry Growth: Government’s Strategies

The government has formulated strategies to capitalize on the halal industry’s potential:

• Leveraging the demographic bonus to improve productivity and meet international demand
• Encouraging Indonesians to use domestically produced halal products

Kartasasmita emphasized the ministry’s commitment to the halal products program. He cited the mandate for halal certification under Government Regulation Number 39 of 2021. He also mentioned the empowerment of the halal industry as part of the National Industry Policy regulated by PRN 74.

The minister outlined various strategies within the presidential regulation:

• Policy development
• Infrastructure expansion
• Halal Product Guarantee System
• Fiscal and non-fiscal incentives
• International collaborations for halal materials
• Enhancing market access

Additionally, there are national halal certifications through mutual recognition agreements (MRA) with other countries, and festivals to promote literacy initiatives.

The ministry expects to play a crucial role in the Halal Products Guarantee System. It will utilize its experience as a leader in setting the national industry standard (SNI). Embrace the immense opportunities and join the ever-expanding global halal industry, where ethical practices meet prosperous economic growth.