The halal industry has evolved from being a supplementary aspect of a nation's economy to a pivotal contributor to national revenue. The State of Global Islamic Economy Report 19/20 designates Malaysia and the United Arab Emirates (UAE) as the world leaders in the halal industry. Malaysia's development and success in the halal sector serve as inspiration for Indonesia to accelerate its halal industry to compete with countries excelling in this field.
The State of Global Islamic Economy Report 19/20 highlights the significant contribution of the global Muslim community to the halal lifestyle, projecting increased demand for halal products in various sectors. The growth of the Islamic economy is inherently linked to the increasing global Muslim population. Indonesia, with the world's largest Muslim population, has a prime opportunity to capitalize on this, as showcased in the report's Top 15 Global Islamic Economy Indicatorscore, where Indonesia ranks 4th.
Indonesia's strategic positioning in the halal industry is underscored by its strengths in halal food, as evidenced by its 2nd place ranking in the State of the Global Islamic Economy Report 2022. The Indonesian government supports the free halal certification movement to boost the halal food market, particularly for micro-businesses, aligning with the predominantly Muslim population's demand for halal-certified products. The certification, regulated by the Halal Product Guarantee Organizing Agency (BPJPH), is a legal commitment to ensure halal quality and uphold the religious obligations of the majority Muslim population.
Furthermore, the promotion of halal exports in international markets underscores the acceleration of Indonesia's halal industry. This government initiative aims to expand the global reach of Indonesian halal products. As the millennial and Gen Z generations embrace entrepreneurship, the halal sector experiences a surge in youth-driven initiatives, particularly in fashion. Local Islamic fashion brands are gaining prominence both domestically and internationally, contributing to the growth of the halal industry on a global scale.
