OIC 'extraordinary' market for halal products: minister

OIC 'extraordinary' market for halal products: minister

A screenshot of Indonesian Trade Minister Agus Suparmanto at an online seminar originating from Jakarta on Saturday. (ANTARA/Aji Cakti)

The good performance of Indonesia’s exports to Muslim countries in the January-July, 2020 period is inseparable from the role of the country's halal products, particularly foods, cosmetics, and medicines. In total, the three products have contributed
Jakarta (ANTARA) - Indonesian Trade Minister Agus Suparmanto has said the 57 member states of the Organization of Islamic Cooperation (OIC), which have a total population of 1.86 billion, are an “extraordinary” market for halal products.

Muslims make up the majority of the population in OIC member states and therefore, they have a high level of compliance with halal products, he said at an online seminar here on Saturday.

He said Indonesia’s trade performance with other OIC member states has been good. In January-July, 2020, Indonesia's exports to OIC member countries reached US$10.94 billion, and recorded a surplus of US$2.2 billion, he informed.

Farm products comprised the largest share of Indonesia's exports to OIC members, accounting for US$2.6 billion, or nearly 25 percent of the country's total exports to the OIC market.

“The good performance of Indonesia's exports to Muslim countries in the January-July, 2020 period is inseparable from the role of the country’s halal products, particularly foods, cosmetics, and medicines. In total, the three products have contributed US$515.79 million (to the total exports to OIC),” Suparmanto said.

For the same period, Indonesia’s food exports to OIC members reached US$454.16 million, up 11.37 percent from US$407.81 million during the corresponding period of last year.

Meanwhile, medicine exports increased 12.33 percent to US$31.31 million from US$27.87 million. However, cosmetics exports have declined 8.15 percent to US$30.32 million from US$33.01 million.

“Despite the positive performance of Indonesia's balance of trade with OIC member states, the country has not played its maximum role as a hub for halal products in the world, particularly foods, cosmetics, and medicines,” the minister observed.

The market share of the three products for the OIC market is still far below that of non-Muslim countries, such as Brazil, France, the US, and Germany, he said.

After all, he said, the halal industry has played a significant role in improving the performance of Indonesia’s trade balance. (INE)


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