UNAIR NEWS Vice President Gibran Rakabuming Raka has identified the halal industry as a strategic pillar in Indonesia檚 pursuit of becoming a developed nation. He underscored the importance of fostering independence across halal sectors such as Islamic finance, food and beverage, Muslim fashion, and Islamic media content.
Prof. Dr. Imron Mawardi, SP, a senior economist at Faculty of Economics and Business (FEB), echoed this sentiment, pointing out Indonesia檚 unique advantage as the world檚 largest Muslim-majority nation. 淭he halal industry presents vast opportunities both in consumption and production. With 230 million Muslim citizens, Indonesia not only has a strong domestic market but also export potential to nearly two billion Muslims worldwide, he stated.
Structural challenges
However, Prof. Mawardi noted that Indonesia still faces several structural obstacles in becoming a leading producer of halal goods. These include a high-cost economic structure, where interest rates and financing margins remain higher than those in competing countries like Thailand and Vietnam.
Additionally, Indonesia檚 halal industry is largely comprised of micro, small, and medium-sized enterprises (MSMEs), which tend to operate inefficiently. Human resource productivity, distribution infrastructure, and logistical limitations continue to drive up production costs.
Significant economic impact
Although not yet formally categorized, halal sectors such as food, fashion, pharmaceuticals, tourism, and Islamic finance already play a major role in Indonesia檚 Gross Domestic Product (GDP).
淥ver 60 percent of our national GDP is actually derived from industries within the halal ecosystem. The government should establish halal industrial hubs to support MSMEs in producing more efficiently and consistently while preparing them for export, he added.
Strengthening strategies
To improve Indonesia檚 standing in the Global Islamic Economy Index, Prof. Mawardi recommended focusing on six core sectors: Islamic finance, halal food, Muslim fashion, pharmaceuticals and cosmetics, and Islamic media and entertainment.
淚nnovation must be applied not only to products but also to systems. From financing to distribution, every element must comply with halal and thayyib principles, he emphasized.
He also highlighted the importance of international cooperation in mutual halal certification recognition, calling it a non-tariff strategy that can boost the competitiveness of local products.
淗alal certification can serve as a barrier to entry for foreign goods and position Indonesia as a global leader in halal production, he concluded.
Author: Rosali Elvira Nurdiansyarani
Editor : Khefti Al Mawalia
