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Indonesia Has the Opportunity to Become a Center for the Halal Industry

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By: Aditya Akbar)*

Indonesia has a great opportunity to become the center of the world’s halal industry. The reason is because there is already a national-scale halal industrial area that can still be developed by many investors to become a world halal industry.

Currently, the halal lifestyle is being intensified, not only consuming halal food, but also halal tourism, and producing halal goods. Indonesians already understand what are the benefits of halal products and they always look at food or beverage packaging labels, already have MUI halal status or not.

Minister of Tourism and Creative Economy Sandiaga Uno stated that Indonesia has great potential to become the center of the world’s halal industry. There is an opportunity for Indonesia not only to become a consumer of halal products, but also to become the center of the world’s halal industry. Such as increasing the export of halal products, substituting halal products (which are still imported), and increasing foreign investors.

The halal industry in Indonesia is being intensified because the majority of the population is Muslim. Among the halal industrial centers are in Sidoarjo and Padang. With the establishment of a halal industrial center, consumers do not need to worry because there actually produce halal food and drinks, and the process is also guaranteed not to violate the Shari’a.

Based on data from the Indonesia Halal Market 2021/2022, Indonesia is the largest halal consumer market in the world, with consumption of halal products of around 184 billion US dollars (in 2020). Meanwhile, investment in the halal economic sector in Indonesia is 5 billion US dollars. With the huge potential of Indonesia’s halal industry, the government continues to encourage entrepreneurs to develop halal products and services. People are not only consumers but also producers.

To encourage entrepreneurs, especially MSMEs (Small, Micro, and Medium Enterprises) to develop halal products, the government frees the cost of making MUI halal certificates. MSME businessmen don’t have to pay 300,000 rupiah, but they can get it at no cost, with a self-declared system.

The requirements to get a free halal certificate are first, MSME actors open a website and then create a SIHALAL account, then apply for a halal certificate through the self-declared route and enter the facilitator code. After that there is a process of validation, verification, and there is an MUI halal session. Only then did he get a halal certificate which is 100% free and practical, and the management can be done independently online.

If it is easier for MSME businessmen to get halal certificates, they will 100% support Indonesia’s position as a center for the halal industry. Management of certificates is also not complicated so that MSME entrepreneurs take care of it with enthusiasm. The halal industry in Indonesia will be more vibrant.

There are many advantages if Indonesia becomes the center of the halal industry. First, there will be many halal products produced and cater to national and international markets. Later consumers around the world will understand that Indonesia does not only produce good goods, but also halal. In this way, the export market will be more dynamic.

The export market is indeed boosted because it generates abundant foreign exchange. In fact, consumers of halal products abroad are not only ASEAN countries, but also many other countries. The reason is because there are many Indonesian citizens who migrate and they miss Indonesian products whose status is halal. In addition, the natives of the country also like it.

If Indonesia becomes the center of the halal industry, the next benefit is to attract investors, especially from the Middle East region. They ensure that the products made by Indonesian entrepreneurs are halal and are willing to invest their capital. The business world will be more dynamic and the government is optimistic that it can rise even though it is still a pandemic.

The government also promotes Indonesia which not only has halal food and beverage products but also other products. The Ministry of Tourism and Creative Economy created ICEFF (Islamic Creative Economic Founders Fund) as a forum to encourage the halal industry in the fields of fashion, crafts, and applications. With the existence of ICEFF, business people are brought together with investors and Islamic financial institutions, so they can work together. If there is collaboration, the halal industry in Indonesia will be stronger and the aspiration to become the center of the world’s halal industry can be achieved quickly.

ICEFF encourages people not only to become consumers but also producers. There are many Indonesian products that are halal and able to compete in the export market. If there is assistance from ICEFF, then halal industry entrepreneurs will no longer have to worry about seeking additional capital, especially if they want to enter the international realm.

Indonesia has a great opportunity to become the center of the world’s halal industry. The reason is because it is easier for entrepreneurs to have an MUI halal certificate. In addition, there is also assistance for MSME businessmen so that they can continue to work

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