Halal Industry: The Future of Indonesia’s Economy – Secure Your Halal Certification

No one would argue the fact that Indonesia has the largest Muslim population in the world. Consisting of over 260 million people, Indonesia has more than 88% Muslim citizens.

According to a study conducted by Thomson Reuters, in 2015 alone, Muslims worldwide spent over US$1.9 trillion in a variety of sectors, especially in the food and beverages and clothing industries. In 2016, Indonesia was ranked the country with the highest spending on food and beverages, amounting to US$169.7 billion.

Therefore, Indonesia is favorably positioned to be Southeast Asia’s biggest halal products hub. This is very attractive to many foreign investors. The projection is further supported and evidenced by the diverse Indonesian demographics, increasing consumer awareness, growing income, and rising awareness of religious obligations.

Let us take a closer look at the halal industry in Indonesia and how ready the initiative is to drive and shape the future of Indonesia’s economy.

The Halal Industry in Indonesia is Booming

In 2018, the Indonesian government revealed that halal certification would be mandatory by 2019. This makes sense because Indonesia wishes to push the already booming halal industry and lead the country to become a global halal hub.

Plus, the Indonesian Halal market has yet to reach its full potential. Many opportunities are on their way to benefit the investors, business owners, and the country’s economy.

Furthermore, the global Muslim population will increase to 2.2 billion by 2030, and the Indonesian population contributes to a big part of the increase. Within eight years’ time, from 2010-2018, the Muslim population in Indonesia reached 200 million people, and the number has never stopped growing.

With all the stated facts, the demand for halal products is believed to rise significantly. Numerous small and medium-sized companies in Indonesia have already taken advantage of these halal opportunities.

Big Business in Halal

A result from Google Trends shows the search for halal topics has increased greatly, indicating that people have increased interest in halal products and services.

With a market value of more than US$1 trillion and estimated to reach US$2.6 trillion by 2023, the Indonesian government has strongly encouraged industry players to enter this highly profitable market.

You may wonder which sectors have the most considerable potential and profits in the halal market. According to a report by Indonesia Halal Lifestyle Center (IHLC), ten sectors are currently thriving as major halal businesses: food, fashion, education, pharmaceuticals, cosmetics, tourism, media and travel, medical and health, art and culture, and Sharia financial and banking industry.

Related article: Most Common Questions about Halal Certificate

Mandatory Halal Certification in Indonesia

Taking effect from October 2019, all businesses are required to obtain the mandatory halal certification. This new regulation will also enforce labeling and quality measures for halal products. Halal certificates are issued by the Halal Products Certification Agency (Badan Penyelenggara Jaminan Produk (BPJPH)).

Only businesses with halal certification will be able to prove that their halal products comply with Sharia laws, thus permitting the products to be consumed or used. This new law includes goods and services related to food and beverages, cosmetics, pharmaceuticals, chemical and biological products, and genetically modified products.

According to Indonesian Law No. 6 Year 2023, halal certification is valid as long as there’s no change in the ingredient or process.

Process of Halal Certification in Indonesia

Though the halal certification process might seem cumbersome, InCorp Indonesia can simplify the process for you. With InCorp Indonesia, the process to apply for halal certification in Indonesia is as follows:

• Meet MS23000 halal requirements and implement the Halal Assurance System (HAS)
• Prepare all necessary documents, the registration, and the halal certification contract fee, and submit them to InCorp Indonesia
• Fill out documents according to your certification status and submit them to us to be processed
• To ensure compliance, guidance is provided for all audits and lab analysis
• The certificate is issued when the product meets HAS requirements and passes lab analysis.

Read also our in-depth guide on Securing Halal Certification in Indonesia.

Certify Your Halal Products through InCorp Indonesia

One important point to note is that if you do not obtain halal certification for your products in Indonesia, even when they are halal, they will become non-halal, with gradual implementation starting in October 2019.

This is why we urge you to register your halal products and obtain halal certificates as soon as possible. Get in touch with us today should you require assistance with your halal certification application in Indonesia by filling in the form below. Or visit our offices in Jakarta, Bali, Semarang, Surabaya, and Batam.