By: Rina Anggina Safitri*
The strengthening of the halal sector within the national economy marks a crucial chapter in Indonesia’s economic transformation toward a more inclusive, competitive, and sustainable structure. This sector is no longer understood narrowly as an economic activity based solely on Muslim consumption, but has evolved into an integrated industrial ecosystem from upstream to downstream, encompassing production, distribution, financing, and global exports. In the context of Indonesia, the country with the largest Muslim population in the world, the halal economy has a very strong domestic market base and significant opportunities to penetrate international markets.
The growth of the halal industry, which has expanded into the food and beverage, tourism, cosmetics, fashion, and financial services sectors, demonstrates that halal has become an integral part of the modern lifestyle. Halal principles, which emphasize cleanliness, safety, ethics, and sustainability, are increasingly relevant to today’s global consumer demands. This makes Indonesian halal products not only competitive in the domestic market but also attractive to international markets that increasingly prioritize product quality and added value.
Indonesia’s achievement in third place in the State of the Global Islamic Economy 2024/2025 report, with a near-perfect score, demonstrates the country’s consistency and commitment to developing the halal economy. This jump in ranking did not occur overnight, but rather resulted from strengthened policies, increased business capacity, and improvements in certification governance and the national halal ecosystem. This achievement also reinforces Indonesia’s position as a key player in the global halal economy.
In terms of economic contribution, the halal sector has proven capable of becoming a new driver of growth. Data released by relevant authorities shows that the halal economy has the potential to significantly contribute to Gross Domestic Product through increased exports and investment. With approximately 230 million Muslim consumers, Indonesia is not only a producer but also the world’s largest halal market. This combination of domestic market strength and export opportunities makes the halal sector a key driver of future national economic growth.
The Head of the Halal Product Guarantee Agency (BPOM), Ahmad Haikal Hasan, has consistently emphasized that halal is not merely an administrative label, but rather a driving force for economic growth. This view positions halal as a strategic instrument for expanding business opportunities, increasing the competitiveness of national products, and connecting domestic value chains with global markets. Optimism that the halal industry can contribute significantly to the national economic growth target of up to eight percent by 2028–2029 reflects the belief that this sector has strong leverage over the overall economy.
Strengthening the halal economy also relies heavily on cross-sector collaboration. Strategic forums bringing together the government, business, and international community provide crucial avenues for aligning visions and accelerating policy implementation. The Indonesian Chamber of Commerce and Industry, for example, views the sharia economy and halal industry as crucial pillars of the national growth agenda. The emphasis on accelerating halal certification, empowering MSMEs, and export readiness demonstrates that halal sector development is geared toward directly impacting small and medium enterprises, the backbone of the national economy.
From a public policy perspective, Minister of Religious Affairs Nasaruddin Umar believes the halal sector can increase Indonesia’s global competitiveness due to its large and integrated market base. This view emphasizes that the halal economy is not merely an economic issue but also part of a national strategy to strengthen Indonesia’s position in the global value chain. Integrating Islamic economic principles with the real sector is considered capable of driving more equitable and balanced growth.
Meanwhile, the business world sees opportunities in the halal economy as a way to expand cross-border trade and investment networks. Arsjad Rasjid, Chairman of the Supervisory Board of the Indonesian Business Council, positions Indonesia as a potential Islamic trade and investment hub in the Asia-Pacific region. Geographical advantages, economic stability, and the level of trust from Muslim countries are crucial assets for Indonesia to act as a bridge for economic connectivity between countries. Initiatives such as the establishment of the B57+ Asia-Pacific Chapter strengthen Indonesia’s position as a key hub for regional Islamic economic cooperation.
Support from the international business community, including from the leadership of the Islamic Chamber of Commerce and Development, further emphasizes Indonesia’s strategic role in the global halal economy. A more practical collaborative framework is considered capable of accelerating the realization of business and investment partnerships between Islamic countries. This opens up significant opportunities for Indonesian halal products and services to penetrate deeper into the global market.
Ultimately, the strengthening of the halal sector reflects the structural transformation of the national economy, which is increasingly adapting to global dynamics. With policy synergy, business support, and active public participation, the halal sector has the potential to become the backbone of Indonesia’s inclusive and sustainable economic growth. The challenge going forward is no longer about potential, but rather consistency in execution, ensuring that the halal economy truly becomes a key force driving the national economy toward a more competitive and sovereign future.
*The author is an observer of Islamic economics