Korea Expands Halal Food Exports to Indonesia

Last week, Korea strategically moved to strengthen its foothold in the Indonesian halal food market by hosting a prominent halal food trade show in Jakarta. This initiative aligns with Indonesia’s upcoming regulations, which will mandate halal certification for all imported food products starting in October. Previously, only livestock meats required halal certification. Still, the new rules will extend to all food items, offering a significant opportunity for Korean exporters to meet the growing demand in the world’s largest Muslim-majority country.

K-Food Fair: A Platform for Connection

Organized by the Ministry of Agriculture, Food and Rural Affairs and the Korea Agro-Fisheries & Food Trade Corp. (aT), the K-Food Fair provided a platform for 32 Korean halal food exporters to connect with 106 buyers from Indonesia, Australia, and New Zealand. Throughout the four-day event, participants engaged in 526 meetings, discussing potential deals valued at $53 million. The fair resulted in 23 memorandums of understanding and business contracts worth $6.7 million, covering a range of products including beverages, home meal replacements, and sauces.

Key Insights from the BPJPH Seminar

The Halal Product Assurance Organizing Body (BPJPH), Indonesia’s leading halal certification authority, held a seminar to update Korean exporters and buyers on the latest halal trade statistics and certification requirements during the fair. Additionally, the Korea Muslim Federation, based in Seoul and having a mutual recognition arrangement with the Indonesian government, provided detailed guidance on the halal certification process.

Shifting Perceptions of Korean Halal Products

The K-Food Fair highlighted the growing diversity and quality of Korean halal food products, which had previously struggled to gain global traction. According to aT, the event helped shift perceptions, with a purchasing director from an Indonesian retail chain noting the proactive approach of Korean food firms in preparing for Indonesia’s new halal certification mandate. She expressed optimism about the future distribution and sales of Korean halal products in the Indonesian market.

Another participant remarked on the surprising variety of Korean halal products available and indicated a willingness to increase purchases of Korean food products in Indonesia.

Strategic Importance of the Indonesian Market

Kwon O-yup, Executive Vice-President of aT’s Trade & Food Industry Division, emphasized the strategic importance of Indonesia for Korea’s halal food export ambitions. “With Indonesia’s population exceeding 280 million, it presents immense potential as a key entry point for Korea into the global halal market,” he said. “This year, marking the first instance of mandatory halal certification in Indonesia will see the Korean government intensify its efforts to promote K-halal foods.”

Growth in Halal Food Exports

Korea’s halal food exports to Indonesia have seen a notable increase, with $135 million worth of products exported in the first half of this year, representing a 6.4% year-on-year growth. Key export items include instant coffee, beverages, and instant noodles.

Korea’s proactive measures to comply with Indonesia’s new halal certification requirements highlight its dedication to boosting halal food exports and maintaining a competitive edge in the global market. Events like the K-Food Fair play a vital role in reinforcing bilateral trade relations and facilitating the seamless entry of Korean halal products into Indonesia and other international markets. These initiatives not only strengthen Korea’s presence in the halal food sector but also open up new opportunities for growth and collaboration worldwide.