By: Dhita Karuniawati )*
The halal economy is no longer viewed as a niche market targeting only certain communities, but has evolved into the global economic mainstream. This development is supported by increasing public awareness of safe, high-quality, and ethically sound products, as well as the significant growth of the global Muslim population. With a market value reaching trillions of dollars, the halal economy encompasses various sectors such as food and beverages, fashion, tourism, cosmetics, pharmaceuticals, and even Islamic financial services. This transformation marks a significant shift: from an identity-based niche market to an inclusive and competitive economic ecosystem.
Indonesia, as the country with the largest Muslim population in the world, has enormous potential to become a major player in the global halal economy, not only as a consumer but also as a producer and innovation hub. Until now, the halal sector has often been perceived as limited to food and beverage certification. However, its scope has now expanded, encompassing aspects of the supply chain, logistics, the creative industry, and even digital technology. This demonstrates that the halal economy is not just a label, but a value system that promotes quality, transparency, and sustainability.
According to the Halal Product Guarantee Agency (BPJPH), the halal economy can significantly boost Indonesia’s GDP growth through exports and investment, while also leveraging Indonesia’s position as the world’s largest halal consumer market.
BPJPH Head Ahmad Haikal Hasan stated that, according to the Indonesia Halal Markets Report, the halal economy could boost Indonesia’s GDP by US$5.1 billion, or approximately Rp72.9 trillion, annually through export and investment opportunities. Furthermore, Indonesia is the world’s largest halal consumer market, with a Muslim population of approximately 230 million.
Babe Haikal is optimistic that the halal industry will be able to drive national economic growth of eight percent in 2028–2029, in line with the target set by President Prabowo Subianto.
According to Babe Haikal, the halal sector is a driving force for economic growth, capable of expanding business opportunities, increasing product competitiveness, integrating domestic and global markets, and becoming the backbone of inclusive and sustainable economic growth.
Meanwhile, Deputy Minister of Trade, Dyah Roro Esti Widya Putri, said that Indonesian halal products have the potential to increase the country’s foreign exchange, namely through export activities.
Roro stated that many Indonesian halal products are in demand in the international market. According to data, the total value of Indonesian halal exports reached USD 41.4 billion, spanning food (USD 33.61 billion), fashion (USD 6.83 billion), cosmetics (USD 363 million), and pharmaceuticals (USD 612 million) by 2024.
According to the State of the Global Islamic Economy (SGIE) Report 2024/2025, Indonesia ranked third among global halal economies with a GIEI score of 99.9, a 19.8-point increase from the previous period. Indonesia ranked first in the fashion sector, second in halal pharmaceuticals and cosmetics and Muslim-friendly tourism, fourth in halal food and beverages, sixth in Islamic finance, and seventh in media. This achievement reflects the strength of Indonesia’s various halal sectors and its ability to attract significant investment, signaling significant potential and positive momentum for the growth of the national halal economy.
Deputy Minister of Trade Roro explained that by 2025, the Ministry of Trade had facilitated 6,066 micro, small, and medium enterprises (MSMEs) through three priority focuses: strengthening competitiveness, expanding market access, and enhancing local product development. These efforts were implemented through various activities, such as product certification support, mentoring, and exhibitions of domestic products, such as local product exhibitions and Jakarta Muslim Fashion Week.
Roro added that these various activities generated a total potential transaction value of IDR 170.6 billion. This demonstrates the significant potential of the domestic market in stimulating the sharia economy and the trade in halal products. These achievements need to be reinforced by law enforcement to improve compliance within the domestic trade ecosystem and provide protection for businesses and, ultimately, consumers.
In addition, Indonesia has a Mutual Recognition Agreement (MRA) that recognizes Indonesian Halal Product Certification Institutions in Malaysia, Thailand, the United States, China, India, Brazil, Hong Kong, Taiwan, New Zealand, South Korea, Pakistan, Chile, Canada, South Africa, and Japan. Indonesia also engages in bilateral halal cooperation with numerous partner countries, including Malaysia, Russia, Canada, the United Arab Emirates, and South Korea.
With its enormous potential and a growing ecosystem, the halal economy has the potential to become a key pillar of future economic growth. Indonesia has a strategic opportunity to lead, not just as a market, but as a producer, innovator, and global reference center. The transformation from a niche segment to the economic mainstream demonstrates that halal is no longer just an identity but a universally accepted standard of quality and value.
*) The author is a contributor to the Indonesian Strategic Information Study Institute
