During the period January to October 2024, Indonesia recorded halal product exports worth US$41.4 billion, with processed halal food dominating export with a value of US$33.61 billion, or 80% share, followed by muslim clothing (US$6.83 billion), pharmaceuticals (US$612.1 million), and cosmetics (US$362.83 million).
The destination countries for Indonesian halal product exports during the 10-month period included the US, China, India, Pakistan, and Malaysia. Indonesia Trade Ministry has recommended 5 priority export destination countries for Indonesian halal products and they include Malaysia, Turkey, the United Arab Emirates (UAE), Thailand, and Saudi Arabia.
According to the ministry spokesperson, “The Turkish and UAE markets are becoming regional trade hubs, while the Saudi Arabian market is driven through the optimization of halal products in the integrated Hajj and Umrah ecosystem. Meanwhile, Malaysia and Thailand are ASEAN markets that need to be maintained as mutually beneficial trade partners.”
The global halal product market is projected to grow 7.6% annually, reaching US$492 billion by 2027. It is interesting to note that most of the halal products exported to OIC (Organisation of Islamic Cooperation) countries are from China, the United States (US), and EU. These are non-muslim countries. As such, there is a strong growth potential for halal exports for Indonesia. Indonesia needs to optimize its position as a member of the OIC to facilitate the trade of Indonesian halal products at the global level. One of the priority markets is Saudi Arabia, especially related to the hajj and umrah ecosystem.
Currently, the biggest challenge faced by Indonesia is regulation and the use of international product standards, characteristics, and unique business culture.
Indonesia’s mandatory halal certification requires that all domestic including imported food and beverage products to be certified halal, bodes well for the industry and for Indonesia to be a potential halal manufacturing and export hub in the future.
