Jokowi: Japan, Thailand, And The United States Are Also Interested In Working On Sharia Economic Opportunities

President of the Republic of Indonesia, Joko Widodo. (Photo: Setkab)

JAKARTA - President Joko Widodo (Jokowi) regrets that the great potential in the halal industry in Indonesia has not been utilized properly. In fact, Indonesia has a great opportunity to become the center of the world's halal industry.

Jokowi said that integrated and comprehensive development efforts need to be carried out in order to achieve Indonesia's goal of being the largest halal industry in the world.

"The industrial ecosystem needs to be fixed, the regulations must be simple and efficient, human resources must be well prepared," he said, opening the Indonesia Sharia Economic Festival (ISEF) 2020 virtually, Wednesday, October 28.

According to Jokowi, Islamic economics and finance are not only in demand by countries with a majority Muslim population. A number of countries such as Japan, Thailand, and the United States are also interested in exploiting opportunities from the Islamic economic market.

Furthermore, he assessed that the development of a real-based, labor-intensive and halal industry is also very potential for expanding employment and opening up new business opportunities.

"Our country has many superior halal products, food products, cosmetics, fashion, we even have aspirations to become the largest fashion center in the world. Unfortunately, we have not utilized this great potential properly," he said.

The former governor of DKI Jakarta said that Indonesia as a country with the largest Muslim population in the world is expected to make Indonesia a center of excellence as a sharia economic hub at the global level.

Previously, Vice President Ma'ruf Amin also highlighted that the contribution of Indonesian halal products to the global market has not been optimal. In fact, he said, the export volume of Indonesian halal products was less than that of non-Muslim countries such as Brazil and Australia.

Ma'ruf said, based on the Global Islamic Economy Report in 2019, Brazil has succeeded in becoming the world's number one exporter of halal food and beverages valued at US $ 5.5 billion. Then, followed by Australia with a value of 2.4 billion US dollars.

Meanwhile, the export contribution of Indonesian halal products has only reached 3.8 percent of the total world halal market. Meanwhile, in 2018 the consumption of Indonesian halal products alone reached 214 billion US dollars. This amount is equivalent to 10 percent of the total consumption of global halal products which reaches 2.2 trillion US dollars.

Furthermore, Ma'ruf said, this condition reflected Indonesia's position to import more instead of becoming a producer and exporter of halal products. In fact, Indonesia has the opportunity to become a world exporter of halal products.

"So far, Indonesia has only been a consumer and also a stamp maker for imported halal products. All of the world's more than 50 halal certificate agencies have received recognition from Indonesia," said Ma'ruf, in his speech at the webinar 'Indonesia Towards a Halal Center. World ', Saturday, October 24th.

Ma'ruf said that Indonesia should be able to take the opportunity from the continued growth of consumption of halal products, considering that the world's Muslim population continues to increase. In fact, in 2024 the consumption of global halal products is estimated to reach 3.2 trillion US dollars. Meanwhile, the Muslim population will reach 2.2 billion people by 2030.

"We must be serious about making Indonesia the largest producer and exporter of halal products in the world. With the resources we have, I believe Indonesia has a great opportunity," he said.

To achieve this goal, Ma'ruf said, Indonesia had prepared a number of strategic steps simultaneously and collaboratively across ministries and institutions. This step includes strengthening the halal industry through special industrial areas.

Ma'ruf hopes that the development of this industry can attract investors to make Indonesia a global hub for halal products.

"We hope that in 2024 we will become the largest halal producer because we have great potential," he said.