Indonesia’s halal industry hinges on three sectors: Industry Ministry

Indonesia’s halal industry growth is driven by three main sectors: halal pharmaceuticals and cosmetics, halal culinary, and modest fashion. The country has risen in global rankings, now 5th in halal pharmaceuticals and cosmetics, 2nd in culinary, and 3rd in modest fashion. With global Muslim consumer spending increasing and the Muslim population projected to grow, Indonesia aims to leverage its large Muslim population to boost its halal industry. Efforts include international exhibitions and facilitating halal certification for small industries.

Indonesia’s halal industry is heavily influenced by three primary sectors, according to the Ministry of Industry:

1. Halal Pharmaceuticals and Cosmetics: This sector has seen significant growth, with Indonesia moving up to the 5th global rank. This reflects the country’s strong presence and competitiveness in producing and exporting halal-certified pharmaceuticals and beauty products.
2. Halal Culinary: Indonesia has secured the 2nd global rank in halal culinary, demonstrating its leadership in halal food and beverage production. This sector benefits from Indonesia’s rich culinary heritage and the growing global demand for halal food.
3. Modest Fashion: The modest fashion sector has achieved the 3rd global rank, showcasing Indonesia’s influential role in producing and promoting modest clothing that aligns with halal principles.

Key Points:

• Global Muslim Consumer Spending: Spending by global Muslim consumers increased by 9.5%, from USD 2 trillion in 2021 to USD 2.29 trillion in 2022. This trend highlights the growing market for halal products worldwide.
• Projected Muslim Population Growth: The Muslim population is expected to reach 2.2 billion by 2030, accounting for 26.5% of the global population. This growth is likely to drive further demand for halal products.
• Indonesia’s Potential: With a Muslim population of 235.6 million, Indonesia has significant potential to expand its halal industry and Islamic economy.
• Government Initiatives: The Ministry of Industry has been active in promoting the halal sector through international exhibitions like the Almaty Halal Expo, OIC Halal Expo, and Russia Halal Expo. Additionally, the ministry has helped 3,095 small industries obtain halal certification over the past three years.