Strengthening Logistics Integration, Ministry Of Industry Encourages Indonesian Halal Industry To Go Global

Minister of Industry, Agus Gumiwang Kartasasmita. (Photo: Presidential Staff Office)

JAKARTA - The Ministry of Industry continues to strengthen the domestic industrial structure so that it can be more integrated and globally competitive. One of the strategic steps is to develop the potential for products and services of the halal industry in the country.

Director General of Resilience, Territory and International Industrial Access (KPAII) of the Ministry of Industry, Dody Widodo, said this was aimed at meeting the needs of the domestic and export markets.

"These efforts are as stated in the 2019-2024 Indonesian Sharia Economics Master Plan," he said, in Jakarta, Wednesday, December 9.

Dody said, in order to accelerate the development of the real sector of the Islamic economy or what is known as the halal industry, it is necessary to strengthen the entire value chain of the halal industry or halal value chain from upstream to downstream.

"Among other things, by building halal industrial areas and halal hubs in various regions in accordance with the comparative advantages of each superior region," he said.

Until now, said Dody, there have been two Halal Industrial Zones in Indonesia, namely the 500-hectare Cikande Modern Industrial Estate located in Serang, Banten, with a focus on the food, pharmaceutical and cosmetics industry sectors.

Then, the Safe N Lock Industrial Zone in Sidoarjo, East Java, with an area of 9.95 hectares and focuses on the consumer goods, cosmetics, and food and beverage industry sectors.

"There are also several other industrial areas that are preparing to develop their industrial areas into Halal Industrial Zones, namely the Bintan Inti Industrial Estate, Batamindo, Jakarta Pulogadung, Surya Borneo, Makassar, Tenayan, and the Subang Industrial Zone," he said.

In the halal industrial area, said Dody, all services related to halal products are under one roof or one stop service. This includes supporting systems and facilities for the halal industry that are in accordance with the halal product assurance system such as HR (halal centers), laboratories, and the Halal Inspection Agency (LPH).

In addition to the halal assurance system, said Dody, to maintain the integrity of halal products, it is also necessary to implement an integrated halal traceability system in the supply chain, including logistics.

The concept of halal logistics in the halal industrial area includes a supply chain management system, procurement of raw materials, processing of halal products, storage of halal products and distribution of halal products.

The potential for increasing demand for domestic and foreign halal products, said Dody, could make Indonesia a regional and global halal hub for halal production and trade.

In addition, it can also encourage the need for halal logistics which includes warehouses, ports (ports), air ships, ships and all matters related to handling facilities.

"For this reason, logistics or logistics service companies in distributing their halal products must have obtained a halal guarantee system so that the halal value chain from upstream to downstream is guaranteed," he said.

Dody said, logistics companies can also have unique selling points to be able to handle halal products so that they become added value compared to other companies that do not implement a halal guarantee system.

"We hope that the integration between the logistics sector, ports and halal industrial areas can produce a supply chain strategy through the Halal Traceability System so that it can spur the development of the Islamic economy in the Indonesian halal industrial area," he said.

Dody is optimistic that Indonesia can lead as a player in the halal industry in the global arena, supported by its various potentials. Based on The State of Global Islamic Economy (SGIE) Report 2020/2021, Indonesia managed to climb to 4th place this year, compared to 2019 which was in 5th place and 2018 which was in 10th place.

"It can be interpreted that Indonesia's sharia economic and financial ecosystem is getting stronger, so that Indonesia's vision to become a world halal producer can be realized with the hard work of all stakeholders," he said.

In addition, referring to international trade data from ASEAN countries to OIC countries in 2019, only Indonesia experienced a positive trade balance of US $ 2.068 billion. Meanwhile, seen from the export value, Indonesia ranks 4th which reached 21.588 billion US dollar.