Minister Of Industry Agus: Halal Industry Potentially Becomes A Machine For Economic Growth In The Future

JAKARTA - The Ministry of Industry (Kemenperin) is targeting the contribution of the halal industry to become a source of machinery for new national economic growth in the future.

From the manufacturing sector, the halal industry also showed positive performance. In the first quarter of 2024, the flagship sector of the Halal Value Chain (HVC) grew by 1.94 percent on an annual basis or year on year (yoy).

Minister of Industry (Memperin) Agus Gumiwang Kartasasmita said, the leading halal sectors include halal food and drinks and modest fashion which recorded growth of 5.87 percent yoy and 3.81 percent yoy, respectively.

"This shows that in the future, national economic growth can be dominated by the sharia economy through the development of the halal industry," said Minister of Industry Agus in a written statement, quoted on Saturday, September 28.

Agus revealed that the potential of the sharia economy and the halal industry is very large. This is based on data from the 2023/2024 edition of the State of the Global Islamic Report (SGIER) which shows that the amount of consumption of halal products in the world is estimated at 2.4 trillion US dollars in 2024.

Not only that, the Pew Research Centers Forum on Religion and Public Life also projects that the number of Muslim populations in the world will continue to grow to reach 2.2 billion people or 26.5 percent of the world's total population by 2030.

He considered that the increase in the number was in line with the growth in demand for halal industrial products.

"So, Indonesia as the country with the second largest Muslim population in the world, reaching 241.7 million people, has a very promising market potential for sharia economic growth and the halal industry," he said.

The Minister of Industry explained that Indonesia's Islamic economic position at the global level continues to increase in various sectors. Last year, overall Indonesia managed to move up one rank to third place in the Global Islamic Economy Indicator in SGIER 2023/2024 released by Dinar Standard.

However, Indonesia still lost to Malaysia and Saudi Arabia despite being able to surpass the position of the United Arab Emirates and Bahrain.

"Of the five assessment indicators, there are three indicators that support the increase and are correlated with the efforts of the Ministry of Industry in the halal industry sector," said Agus.

First, Indonesia managed to rise by three places to become the fifth position in the halal pharmaceutical and cosmetic industry sector. Second, in the halal food industry sector, Indonesia ranks third by beating Turkey, Singapore and Thailand. Third, in the modest fashion sector, Indonesia occupies the third level by passing through Singapore and Italy.

"We don't want to make Indonesia only a market, we have to prepare ourselves to be independent and reduce imports (so that) we become the host in our own country," he added.

Minister Of Industry Agus Gumiwang Kartasasmita/DOK Kemenperin