Jakarta, 1/5/2021 (ANTARA) - Indonesia, the world's most populous Muslim-majority nation, is focusing on developing its halal industry to meet domestic and global demand in light of trends that indicate sharia businesses grew amid the economic crises wrought by the pandemic.
The halal industry has been able to record positive performance despite the pressure on economies around the world owing to the COVID-19 pandemic. Prior to the pandemic, in 2019, the industry had recorded a growth of 3.2 percent higher than global economic growth of 2.3 percent.
"Globally, spending on halal products in 2019 before COVID-19 occurred, especially on food, pharmaceuticals, cosmetics, fashion, and travel products had reached US$2.02 trillion," Finance Minister Sri Mulyani Indrawati informed on the sidelines of the online launch of a halal industry collaboration program on April 14, 2021.
Indonesia is the world's biggest market for halal products, particularly in the food, tourism, pharmaceuticals, and cosmetics sectors, she pointed out.
"This potential must inspire business operators to work on the halal industry," she said.
Indonesia's sharia economy is focusing on developing the halal industry, sharia finance, sharia social finance, and sharia entrepreneurship.
The government's support has been apparent from the several policies aimed at developing the halal industry, including the establishment of a Special Economic Zone (KEK) for the industry.
In addition, the collaboration between the National Committee for Sharia Economics and Finance (KNEKS) and companies such as PT. Unilever Indonesia is expected to encourage the halal industry in the country.
Supply chain cooperation is a necessity at this time for strengthening the ecosystem and creating a comprehensive supply chain cooperation, Indrawati said.
Hence, it is crucial to develop a cross-sector collaboration program to support the development of sharia economy and finance in Indonesia, which is targeting to become the world's sharia economy hub, she added.
"This (the Muslim Center of Excellence program) is an initiative from a very positive industry in order to strengthen the ecosystem of the halal industry in Indonesia and strengthen the capabilities and capacities of the industry, including MSMEs, in producing goods meeting the preferences of Muslim groups," she said.