Halal Industry Growth is Still Minimal, Only Reaching 1.94 Percent by Q1-2024

Secretary General of the Ministry of Industry Eko SA Cahyanto. Photo: Theresia Agatha/VOI

JAKARTA - The Ministry of Industry (Kemenperin) noted that the growth of the halal value chain (HVC) industry grew by 1.94 percent year on year (yoy) in the first quarter of 2024. The performance at the beginning of this year was supported by the food and beverage (mamin) and fashion industries.

Secretary General of the Ministry of Industry Eko S.A Cahyanto said that the sharia economy and halal lifestyle can be important elements in developing sources of new and sustainable economic growth drivers

"The halal food and beverage sector and modest fashion recorded quite high growth, respectively 5.87 percent (yoy) and 3.81 percent (yoy)," said Eko in his remarks at the Kick Off Indonesia Halal Industry Awards (IHYA) 2024 event at the Kemenperin Building, Jakarta, Monday, August 26.

Eko assessed that in the future, national economic growth could be dominated by sharia economic growth through the growth of the halal industry.

Based on the State of the Global Islamic Economy Report (SGIER) 2023/2024, the great potential of the sharia economy and halal industry is reflected in the increase in Muslim consumer spending by 9.5 percent from USD 2 trillion in 2021 to USD 2.29 trillion in 2022.

On the other hand, based on the Pew Research Center's Forum on Religion and Public Life, the world's Muslim population is also expected to continue to grow to reach 2.2 billion people or 26.5 percent of the world's total population in 2030.

"The increase in this figure will certainly be in line with the increasing demand for halal industry products," he said.

Moreover, Indonesia as a country with the largest Muslim population in the world, reaching 235.6 million people, has a very promising market potential for the growth of the sharia economy and halal industry.

In this case, the Ministry of Industry said, there are three indicators that support the increase and correlate with the Ministry of Industry's efforts in the halal industry sector, namely the halal pharmaceutical and cosmetic industry, food and beverages and fashion.

As support, the Ministry of Industry is also processing the facilitation of free halal certification which is currently underway with a target of 4,000 small industries, both regularly and self-declared.