Encourage The Muslim Fashion Industry, Ministry Of Industry: Huge Potential, Reaching IDR 85.7 Trillion!

JAKARTA - The Ministry of Industry (Kemenperin) revealed that the potential of the Muslim fashion business in Indonesia reaches 6 billion dollars or equivalent to Rp. 85.7 trillion. The high potential is supported by the large Muslim population in Indonesia.

Acting (Plt) of the Directorate General of Small, Medium and Multifarious Industries (IKMA) of the Ministry of Industry, Reni Yanita said the government will continue to support the national fashion industry so that it can host it in its own country.

Furthermore, Reni said one way is through standardization in the form of halal certificates and international standards. According to him, the Ministry of Industry is also proactive in promoting the advantages of national industrial products from various sectors at international exhibitions.

For example, at the Expo 2020 Dubai event, the Indonesia Pavilion displayed a variety of competitive and innovative small and medium industry (IKM) products.

"Indonesia has a great opportunity for the development of the Muslim fashion industry because the majority of the population is Muslim and the total domestic consumption of Muslim fashion reaches 6 billion US dollars. This condition also makes Indonesia succeed in becoming the third best country in developing its Muslim fashion industry, after the United Arab Emirates and Turkey," he said in a written statement, quoted Tuesday, November 2.

Not only that, said Reni, to develop the national fashion industry, especially small and medium industry players (IKM), the government also participates in international exhibitions. Reni said there were at least 16 IKM players who participated in the Expo 2020 Dubai event at the Indonesia Pavilion by displaying a variety of competitive and innovative products.

According to Reni, these IKM actors come from the fashion and accessories, cosmetics, food and beverage sectors, as well as startup players who provide technology solutions for IKM.

"Most of the products displayed have halal certificates and international standards," he explained.

Reni said she was optimistic that with the huge potential of Muslim fashion, it would be able to attract the attention of potential investors. So as to be able to revive the national economy through the textile industry and textile products.

"We are optimistic that there will be potential investors who are interested in collaborating with our SMEs through the prepared business forum," he said.

For your information, the world market for halal products is a very promising market. This is because the world's Muslim population is estimated to spend more than US$2 trillion in the food, pharmaceutical, cosmetic, fashion and recreation sectors.

Meanwhile, based on data from the Ministry of Trade, the export value of Indonesian halal products is estimated to have only reached US$6 billion or ranked 21st in the world. Meanwhile, Muslim fashion exports are estimated at US$4.1 billion or ranked 13th in the world.

Previously, Minister of Finance (Menkeu) Sri Mulyani Indrawati said that all countries were still facing the COVID-19 pandemic. This pandemic has had a tremendous impact in the health, social and economic fields. However, Sri said, in this crisis situation, the halal industry is still able to record good performance.

Globally, Sri said, spending on halal products in 2019 before the pandemic occurred, especially for food products, pharmaceuticals, cosmetics, fashion, and other products, reached 2.20 trillion US dollars and grew by 3.2 percent.

Sri said that this growth was higher than the world's economic growth before the onset of COVID-19 which was 2.3 percent. This illustrates the potential of the market for halal products that are in demand by many consumers around the world.

This state treasurer said that Indonesia as a country with a large economy, included in the G20 group and with a large Muslim population, saw this potential as an opportunity to develop industries that could meet the wishes or demands for both Indonesia and the global market.