Based on Alibaba’s Report, Indonesia Occupies the Top Position in the Country with the Largest Buyers of Halal Products in Southeast Asia

Illustration (Stephen Barnes/Pexels)

JAKARTA - Indonesia is ranked first as the country with the largest buyer base for halal products in Southeast Asia according to the 2023 Halal Industry Report released by the online shopping platform, Alibaba.com.

Meanwhile for the global market, Indonesia is ranked 7th after the United States, Pakistan, Bangladesh, Egypt, England and Saudi Arabia.

"Indonesia clearly has an advantage in the halal product market because this country has a large population, strict product standards, and many entrepreneurs operating in this field," said Alibaba.com Head of Southeast Asia Roger Luo in an official statement received, as reported by Antara, Monday, September 18.

The report, which was prepared together with the Malaysia External Trade Development Corporation (MATRADE), also states that Indonesia is recognized as one of the main suppliers of halal products because this country has a rich Islamic heritage and deep cultural understanding.

Based on the 2023 Alibaba.com Halal Industry Report, the Halal products that recorded the highest growth in terms of purchases were traditional Muslim clothing, scarves, skin care products and halal snacks.

The increasing demand for Muslim clothing is driven by the growing Muslim population and the desire to dress modestly according to culture.

In addition, purchases of headscarves and scarves have also increased, not only among Muslim women, but also among non-Muslims who like the style and versatility of scarves as accessories.

For the skin care industry, demand for halal-certified products is increasing along with buyers' desire to use natural and natural options.

Consumers, both Muslim and non-Muslim, are looking for skin care products that are free from alcohol, animal-based ingredients, and other prohibited substances, making halal-certified skin care products a popular choice.

Bank Indonesia itself estimates that the Halal Value Chain (HVC) sector in Indonesia, which includes agriculture, halal food and drinks, Muslim fashion, and Muslim-friendly tourism, will grow 4.5 - 5.3 percent in 2023. This figure is projected to be able to contribute more of 25 percent of the country's economy.

As a form of seriousness in developing the potential of the halal sector, the Ministry of Industry (Kemenperin) has also included the Halal Industry Empowerment agenda in the National Industrial Policy (KIN) which is stipulated in Presidential Regulation number 74 of 2022 concerning National Industrial Policy for 2020 - 2024.

Roger Luo encouraged halal product entrepreneurs to take advantage of opportunities to sell online via digital platforms to reach new markets.

"With advances in technology, online sales opportunities are now increasingly easy to reach. We also encourage Indonesian entrepreneurs to take advantage of export opportunities available through digital platforms to expand into new markets," said Roger Luo.