Indonesia Only Controls 4 Percent of the Global Halal Market, Experts Highlight Weak National Sharia Economy
Indonesia still faces big challenges in the global halal industry. Even though it has the largest Muslim population in the world, Indonesia’s contribution to the halal supply chain is only 4 percent. Dean of the Faculty of Economics and Management at IPB University, Prof Irfan Syauqi Beik, revealed that the global halal industry has exceeded a value of 3 trillion US dollars with 8-10 percent growth per year.
According to OIC data, 78 percent of halal food and beverage supply is controlled by non-Muslim-majority countries. Prof Irfan thinks weak coordination across sectors and slow initial steps are the main causes. He pushes for strengthening an integrated upstream-to-downstream system and trade diplomacy to expand market access.
Prof Irfan suggests upgrading KNEKS into a more independent body to strengthen cross-ministerial coordination. Three strategic steps proposed: improving halal education and literacy, fixing the institutional and certification ecosystem, and drafting flexible, substantive regulations.
Also, the potential of Islamic social finance like zakat and waqf reaching Rp500 trillion per year could be a driving motor for the people's economy if managed optimally. With the global halal market continuing to grow, Indonesia has a great chance to become a world sharia economic center through institutional strengthening, policy synergy, and strategic moves to enlarge market share.
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