Indonesia is prioritizing the development of its national halal industry as it prepares to chair the Developing Eight (D-8) organization for the 2026-2027 period. The Ministry of Religious Affairs announced a focus on the halal economy and the blue economy during its upcoming chairmanship.
Strengthening the Halal Ecosystem
M. Fuad Nasar, Director of Halal Product Assurance at the Ministry of Religious Affairs, stated that Indonesia’s large Muslim population positions it to be a significant player in the global halal industry. However, Nasar noted that the industry’s full potential has yet to be realized, necessitating efforts to strengthen its ecosystem and increase public awareness.
Halal principles, he explained, extend beyond religious compliance to encompass health, cleanliness, nutrition, and environmental sustainability. “Halal is certainly healthy, certainly clean, certainly nutritious, and certainly environmentally friendly,” Nasar said.
Government Support for MSMEs
The government is actively supporting the growth of the national halal industry by facilitating halal certification, particularly for micro, small, and medium enterprises (MSMEs). Through the Halal Product Assurance Organizing Agency (BPJPH), these businesses can obtain halal certification under a self-declare scheme that is both free of charge and subsidized by the national budget.
Currently, the quota for halal certification is one million certificates annually, with plans to increase it to 1.35 million. Halal certification for larger businesses continues under the regular scheme.
Economic Impact and Job Creation
The development of the halal industry is anticipated to stimulate job creation, contributing to the reduction of unemployment and poverty. Nasar emphasized that employment generation is a key indicator of progress within the industry, aligning with President Prabowo Subianto’s Asta Cita agenda for equitable economic development and poverty eradication.
The D-8 is a cooperative forum consisting of Indonesia, Malaysia, Iran, Egypt, Nigeria, Pakistan, Bangladesh, and Turkey – eight developing countries with substantial Muslim populations.
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