National Halal Products Can Go Global

Illustration. (Photo: Doc. Antara)

JAKARTA - The World Population Review noted that there are 1.9 billion Muslims in the world, with 229 million of them in Indonesia. The 229 million people represent 87.2 percent of Indonesia's population of 276.3 million, or 12.7 percent of the world's Muslim population.

This shows that Indonesia has a large market potential for Muslim products. Realizing this potential, Indonesia seeks not only to become a market, but also a producer capable of meeting the needs of the domestic Muslim market, as well as exports.

The halal industry sector, which is identical to the needs of Muslims, is an ecosystem with enormous economic potential. The State Global Islamic Economic Report 2020-2021, as reported by Antara Wednesday, June 9, stated that the consumption level of the world's Muslim community reached US$2.02 trillion in the food, pharmaceutical, cosmetic, fashion, travel and media sectors, to halal recreation.

The world's Muslim community spending on modest fashion reached 277 billion US dollars, an increase of 4.2 percent from the previous year, and is expected to reach 311 billion US dollars in 2024.

Of course, this is a great opportunity for the development and expansion of the Indonesian fashion market throughout the world. To that end, the Government of Indonesia together with stakeholders are determined to strengthen the promotion and marketing of Indonesian halal products through the use of digital technology-based online markets.

One of the halal products that has the potential to be strengthened is the fashion sector. By strengthening the halal fashion industry, Indonesia has given birth to designers, communities, and Muslim fashion associations. In fact, various Muslim fashion programs are widely held by inviting social media actresses for promotion.

The same potential also occurs in halal cosmetic commodities, where the consumption of the world's Muslim community reached US$66 billion, or an increase of 3.4 percent compared to the previous year.

Thus, Indonesia's potential as a market for Muslim products needs to be accompanied by an increase in Indonesia's export performance abroad, especially to countries that are members of the Organization of Islamic Cooperation (OIC).

Based on the OIC Economic Outlook 2020 data, among OIC member countries, Indonesia is the fifth largest exporter with a proportion of 9.3 percent below Saudi Arabia (14.5 percent), Malaysia (13.3 percent), the United Arab Emirates. (12.3 percent), and Turkey (10.1 percent).

Indonesia is also the fourth largest importer with a proportion of 8.4 percent behind the United Arab Emirates (12.2 percent), Turkey (12.1 percent) and Malaysia (11.8 percent).

Therefore, at the opening of the Indonesian Halal Products Exhibition or the Indonesia Industrial Moslem Exhibition (ii-Motion), Indonesian Vice President KH Ma'ruf Amin requested that Indonesia be more persistent in trying to dominate the world halal market, especially OIC countries.

Meanwhile, Ma'ruf explained that several strategic steps were taken to realize Indonesia as a global exporter of halal products, among others, by developing halal research and increasing import substitution.

Second, by building halal areas that are integrated with halal logistics facilities. The third is to build a halal information system, including accelerating the process of completing the halal certificate. Fourth, by increasing the contribution of producers of halal products, both micro, medium, and large scale to export halal products throughout the world (Global Halal Value Chain).

It is known, Indonesia has established the 2019-2024 Indonesian Sharia Economic Masterplan which has four main strategies, namely strengthening the halal value chain (which consists of the halal food and beverage industry, the halal tourism industry, the Muslim fashion industry, the halal media and recreation industry, the pharmaceutical industry and the halal tourism industry). halal cosmetics and renewable energy industry, as well as strengthening the Islamic finance sector.

In addition, strengthening micro, small and medium enterprises, and utilizing and strengthening the digital economy.