DIKSIA.COM - JAKARTA, The potential of the national halal industry is considered to be very large and therefore needs to be strengthened so that it can become a mainstay of exports that can support the Indonesian economy in the future.
University of Indonesia (UI) Faculty of Economics (FEB) Dean Teguh Dartanto said Indonesia needs to be at the forefront in the context of the halal industry. In fact, it is becoming a halal hub worldwide.
“The potential of our society and our Muslim middle class as well as the creative industries in this sector is also quite large,” said Teguh in his statement quoted on Sunday (07/16/2023).
The Ministry of Industry estimates that Indonesian Muslims' spending on halal products and services will increase by around 14.96 percent in 2025, amounting to US$281.6 billion.
This forecast makes Indonesia the largest consumer of the halal market in the world, accounting for around 11.34 percent of halal spending worldwide.
The total Muslim population in Indonesia in 2022 is around 241.7 million people, accounting for 87 percent of the country's population.
On the other hand, based on the Indonesia Halal Market Report (2021-2022), the potential value of Halal industry in Indonesia is estimated at US$135 billion or the equivalent of IDR 1,958 trillion.
Therefore, the Global Islamic Economy Indicator 2022 ranks Indonesia fourth as the country with the largest Sharia economy in the world.
Teguh said Indonesia needs to develop halal products and export markets to tap into the non-conventional market. “So far we are still very dependent on the conventional market. Those are the only countries,” Teguh said.
“That means we need to find and develop really unconventional markets for emerging Muslim countries,” he continued.
He cited the example of Pakistan and India, which have large Muslim populations. In addition, there are also uncultivated countries in the northern Middle East and also in North Africa.
According to Teguh, these countries are very potential markets for halal products. In his opinion, Indonesia could be encouraged to enter there.