The sharia economy and halal industry are seen as a new engine of economic growth. As part of the processing industry, the halal industry has also performed positively. In the first quarter of 2024, the leading Halal Value Chain (HVC) sectors grew 1.94 percent (y-o-y).
“These leading halal sectors include halal food and beverages and modest fashion, which grew by 5.87 percent (y-o-y) and 3.81 percent (y-o-y) respectively. This shows that in the future, national economic growth could be dominated by the sharia economy through the development of the halal industry,” Minister of Industry Agus Gumiwang Kartasasmita said at the Indonesia Halal Industry Awards (IHYA) 2024 at ICE BSD, Tangerang, on Friday (27/9).
The Minister also said the sharia economy and halal industry have enormous potential. According to data in the 2023/2024 State of the Global Islamic Economy Report (SGIER), global halal consumption is estimated to reach USD 2.4 trillion in 2024.
In addition, the Pew Research Center's Forum on Religion and Public Life
projects that the world's Muslim population will keep growing to 2.2 billion, or 26.5 percent of the world's population, by 2030. This increase is seen as in line with growing demand for halal industry products.
“So Indonesia, as the country with the world's second-largest Muslim population at 241.7 million, has very promising market potential for the growth of the sharia economy and halal industry,” Agus explained.
In addition, the position of Indonesia's sharia economy globally continues to rise across various sectors. Last year, Indonesia rose one place overall to third in the Global Islamic Economy Indicator in the SGIER 2023/2024 released by DinarStandard. Indonesia's third place, after Malaysia and Saudi Arabia, put it ahead of the United Arab Emirates and Bahrain.
“Of the five assessment indicators, three supported this rise and correlate with the Ministry of Industry's efforts in the halal industry,” the Minister stressed.
First, Indonesia rose three places to fifth in the halal pharmaceutical and cosmetics sector. In the halal food sector, Indonesia ranked third, ahead of Turkey, Singapore and Thailand. And in modest fashion, Indonesia ranked third, ahead of Singapore and Italy.
“Therefore, to promote and increase public awareness of halal industry products, we hold IHYA, which we have done every year since 2021,” Agus said.
The IHYA event
Through the IHYA series, the Minister recognized halal industry stakeholders who support and play an active role in accelerating the development and empowerment of the national halal industry.
“IHYA has become a brand for the advancement of Indonesia's halal industry and represents Indonesia's vision as the world's leading halal producer hub,” he said.
IHYA is also expected to be a highly credible award and a medium for curating the best halal industries in Indonesia. “We hope that through IHYA, the Ministry of Industry can help strengthen the sharia economic ecosystem in general and the halal industry in particular,” he added.
For IHYA 2024, as in previous years, Kemenperin involved cross-sector stakeholders from government and non-government institutions, industry, community organizations and academia in judging and recommending winners. Multi-stakeholder involvement in IHYA 2024 is important because it makes IHYA a collaborative event of many elements, not just a Kemenperin activity.
“We hope IHYA 2024 can be a joint step to spur the growth of the national halal industry ecosystem, raise the reputation of local industry and increase the competitiveness of national industry globally,” Agus explained.
On this occasion, the Minister thanked the Board of Judges and the Advisory Board, whose members come from various backgrounds, for their attention and cooperation throughout IHYA 2024.
“Congratulations to the IHYA 2024 award recipients. I hope they will not stop innovating to create new ideas that can contribute to the advancement of the national halal industry, and to enliven halal industry campaigns and promotion in Indonesia and globally,” he concluded.
This year, the Minister presented IHYA 2024 awards to 22 recipients across eight categories. The first category, Best Halal Innovation, includes CV Batik Teknologi Indonesia, the Center for Standardization and Industrial Services Tekstil, the Sumbawa Regency Government, Ahmad Dahlan University and the Indonesian Ulema Council.
Second, the Best Social Impact Initiatives category, including PT Paragon Technology and Innovation, Politeknik AKA Bogor and Yayasan Rumah Zakat Indonesia. Third, the Best Halal Supply Chain category, won by PT Dexa Medica.
Fourth, the Best Small Industry category, including PT Alindra Berkah Cemerlang, CV Paradise Batik, CV Kay Nusa Bihaka, PT Followme Indonesia and PT Osadha Nusantara Group.
Fifth, the Best Halal Industrial Estate category, won by Halal Industrial Park Sidoarjo (PT Makmur Berkah Amanda Tbk). Sixth, the Best Export Expansion category, received by PT Darya-Varia Laboratoria Tbk.
Next, the Best Halal Program Support category was presented to the Riau Islands Provincial Government and the Banjarmasin City Government. The eighth category, Best Halal Financial Support, was received by PT Bank Pembangunan Daerah Jawa Tengah, PT Dana Syariah Indonesia, the BMT Insan Samawa Sharia Consumer Cooperative and the National Zakat Agency.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia