JakartaGlobe-Feb 28,2025
Indonesia, home to one of the world’s largest Muslim populations, must strive to become a dominant force in the global halal industry, rather than merely serving as a major market destination, an official said on Thursday.
The country should play a more active and strategic role in shaping the halal economy and sharia-based services, said Friderica Widyasari Dewi, a commissioner at the Financial Services Authority (OJK). “We must not fall behind, and we should not let Indonesia remain just a market for halal products and sharia-based services,” Friderica said during the “Sharia Economy 2025: Halal Lifestyle and Consumer Trends” seminar, hosted by B-Universe Media Holdings at the Ritz Carlton-Pacific Place Hotel in Jakarta. The global halal economy is witnessing rapid growth, fueled by rising Muslim consumer spending, increasing demand for sharia-compliant products, and greater government support for halal certification worldwide. According to the State of the Global Islamic Economy Report 2023, Muslim consumer spending across halal food, pharmaceuticals, cosmetics, fashion, tourism, and media reached $2.29 trillion in 2022 and is projected to surpass $2.8 trillion by 2025.
The halal food industry alone accounted for $1.27 trillion, while Islamic finance assets have exceeded $4 trillion globally. Leading countries such as Malaysia, Saudi Arabia, the UAE, and Turkey have successfully established strong halal ecosystems and captured significant shares of the global market. Friderica revealed that Indonesia is already making significant strides in the halal industry and currently ranks third in the Global Islamic Economy Indicator (GIEI).
The country’s halal sectors are gaining global recognition: 2nd in the world for the halal food industry, 3rd in Muslim fashion, 5th in pharmaceutical and halal cosmetics, 6th in the media and recreation industry, 7th in Islamic finance
In Muslim-friendly tourism, Indonesia has taken the top spot, ranking 1st in the Global Muslim Travel Index 2024. With its vast domestic market, strong production capacity, and increasing government initiatives, Indonesia has the potential to lead the global halal industry by expanding exports, strengthening halal certification standards, and enhancing the sharia financial sector to attract international investment, she said. Read more at:
