Indonesia Targets to Dominate World Halal Market, VP Says

INDUSTRY.co.id - Indonesian products should dominate the world halal market given the country has the world’s largest Muslim population, Vice President Ma’ruf Amin has said.

“Indonesia has a huge market potential for Muslim products. The Government hopes that Indonesia can become the world’s largest producer and exporter of halal products,” he said when opening the 2021 Indonesia Industrial Moslem Exhibition (II-Motion) virtually, Thursday (3/6).

He cited data from the Organization of Islamic Cooperation (OIC) Economic Outlook 2020 which reported that among OIC member countries, Indonesia is still the fifth largest exporter with a proportion of 9.3 percent, behind Saudi Arabia (14.5 percent), Malaysia (13.3 percent), United Arab Emirates (12.3 percent), and Turkey (10.1 percent).

Indonesia is also the fourth largest importer with a proportion of 8.4 percent behind the United Arab Emirates (12.2 percent), Turkey (12.1 percent), and Malaysia (11.8 percent). For this reason, the Vice President expressed hope that Indonesia’s potential as a market for Muslim products must be followed by an increase in Indonesia’s export, especially to the OIC countries.

“Indonesia must be more persistent in trying to dominate the world halal market, especially the OIC countries,” he said.

Ma’ruf went on to explain that there are at least four strategic steps that can be taken to realize the target. First, by developing halal research and increasing import substitution.

“Second, by building halal areas that are integrated with halal logistics facilities. Third, by building a halal information system, including accelerating the process of completing the halal certificate,” he said.

The last one, he continued, is to increase the contribution of producers of halal products, both micro, medium, and large scale to export halal products throughout the world (Global Halal Value Chain).

“Looking at the various potentials we have, added by the Government’s support through Government Regulation Number 39 of 2021 on Implementation of the Halal Product Assurance Sector, I am optimistic that Indonesia will be able to become the largest producer of halal products in the world in the future,” he said.

Previously, Minister of Industry Agus Gumiwang Kartasasmita reported that the implementation of the 2021 II-Motion is expected to increase the Purchasing Managers Index (PMI) of Indonesia’s Manufacturing.

“Alhamdulillah, based on the latest release, Indonesia’s Manufacturing PMI in May 2021 was recorded at 55.3, had increased from 54.6 in the previous April. This is the highest record in the history of Indonesia,” said the Minister.

Agus expressed hope that the event entitled “Indonesian Halal Industry Today” which is attended by 138 participants from the food and beverage, fashion, cosmetics, jewelry and household goods industries can be a way to realize Indonesia as the largest producer of halal products in the world.

“Through the II-Motion 2021 event, it is hoped that it can open and expand the marketing reach of Indonesian Muslim products, encourage the growth of small and medium-sized industries of Muslim products, strengthen Indonesia’s image as an important player in the world halal industry, and support Indonesia’s efforts to become the largest halal product producer in the world,” he said.

For the record, the State Global Islamic Economic Report 2020-2021 reported that the consumption level of the world’s Muslim community reaches USD2.02 trillion in the food, pharmaceutical, cosmetic, fashion, travel and media sectors. For example, spending on modest fashion amounting to USD277 billion, an increase of 4.2 percent from the previous year, and is expected to reach USD311 billion by 2024.