Indonesia is expected to capitalize on its strategic position in the global market and the surge in demand for halal products and services to rapidly develop the country's halal economy.
Jakarta (ANTARA) - Indonesia wields enormous potential in the halal economy that could raise the country's gross domestic product (GDP) by US$5.1 billion per year, Finance Minister Sri Mulyani Indrawati has said.

The minister highlighted Indonesia's large Muslim population and described it as valuable capital for further boosting the nation's halal economic prowess.

"Indonesia is expected to capitalize on its strategic position in the global market and the surge in demand for halal products and services to rapidly develop the country's halal economy," she said during the 7th Annual Islamic Finance Conference, which was followed online from Jakarta on Tuesday.

She noted that all countries are facing relatively similar obstacles in developing their halal industries, such as fragmented halal supervisory institutions, lack of standardization, low quality of halal auditors, and minimum compliance with Islamic standards.

The state treasurer also highlighted inadequate halal literacy, lack of research and development activities, lack of halal funding, and the absence of an integrated international halal certification institution.

In order to tackle the obstacles, the Indonesian government will focus on taking three strategic measures, the minister said.

The first measure will be to prioritize meeting the increasing demand for high-quality halal products. Indrawati said the government will take the first measure while optimizing Islamic sources of finance, such as zakat, or alms.

She explained that a financial source like zakat can be instrumental in boosting the consumption rate of halal products given that zakat is aimed at strengthening the economy of marginalized communities.

The minister then elaborated on the second measure, saying that the government will make significant efforts to intensify promotional activities for Indonesia's halal products at the global level, thereby expanding the market reach of such products.

Minister Indrawati expressed the belief that stepping up promotional activities will also help halal product producers to develop their businesses.

Under the third measure, the government will support actors in the halal economy by simplifying the process of obtaining business permits, providing incentives to halal industry players, and helping micro, small, and medium enterprises to feature in national and international exhibitions, she said.

"The Indonesian Government is committed to supporting the halal industry by establishing related agencies and strengthening policies. All the measures will be taken to ensure that the industry genuinely adopts reliable halal standards," she added.

Related news: IHYA supports RI's vision to become global halal producer: Minister
Related news: Indonesia urged to reposition itself as global halal industry leader








Translator: Imamatul S, Tegar Nurfitra
Editor: Rahmad Nasution
Copyright © ANTARA 2023