Indonesia will enter the next phase of mandatory halal certification\non 18 October 2026, with a base of 2.87 million halal industry\nbusinesses, 99 per cent of them micro and small enterprises. The\ndeadline underpins a series of policies developed by the Industry\nMinistry since 2020 under Agus Gumiwang Kartasasmita, who was removed as\nindustry minister in this month\u2019s Cabinet reshuffle.<\/p>\n
According to the Halal Product Assurance Agency (BPJPH), this phase\ncovers several product groups, including cosmetics, textiles and\nceramics, as well as food and drink products, in line with the phased\nimplementation. This large market holds considerable potential, but\ndomestic producers have yet to capture its full added value.<\/p>\n
The opportunity is substantial. The State of the Global Islamic\nEconomy Report recorded Muslim consumer spending in the halal economy at\nUS$2.6 billion in 2024. That figure is projected to rise to US$3.56\nbillion by 2029.<\/p>\n
In Indonesia, around 87 per cent of the population is Muslim. The\nfood and drink industry, the largest sector in the halal economy, grew\nby 6.15 per cent in 2025 and contributed about 6.72 per cent of gross\ndomestic product (GDP), while roughly 65 million micro, small and\nmedium-sized enterprises (MSMEs) account for approximately 61 per cent\nof GDP.<\/p>\n
However, the size of the market has not automatically translated into\nindustrial strength. The question policymakers are now asking is no\nlonger how large Indonesia\u2019s halal market is, but how much of its value\ndomestic producers can capture.<\/p>\n
\u201cThe halal economy is an important part of the global economic war\nthat we must win,\u201d Agus Gumiwang said.<\/p>\n
Since 2020, at Agus Gumiwang\u2019s initiative, the Industry Ministry has\ndeveloped the halal industry along several tracks: institutions,\nregulation, infrastructure, supply chains, business models, promotion\nand public services\u2014all parts of the halal economy ecosystem.<\/p>\n
Institutionally, the ministry established the Halal Industry\nEmpowerment Centre (PPIH) in 2020, which was renamed the Halal Industry\nCentre (PIH) in January 2025. The ministry has also established Halal\nInspection Bodies, Halal Product Process Assistance Institutions (LP3H),\nand halal training institutions to prepare halal supervisors and\nassistants.<\/p>\n
On infrastructure, the ministry regulated the establishment of halal\nindustrial estates through Industry Ministerial Regulation No.\u00a017 of\n2020 and encouraged the development of Halal Industrial Parks with the\nIndonesian Industrial Estates Association (HKI). Its medium-term\ndirection is set out in the 2025\u20132029 Halal Industry Development Roadmap\n(Industry Ministerial Regulation No.\u00a040 of 2025), which complements the\nnational Indonesia Halal Industry Masterplan 2023\u20132029.<\/p>\n
The Industry Ministry is currently facilitating four halal industrial\nestates, in Bintan, Cikande, Jababeka and Sidoarjo. The supporting\necosystem includes 22 Halal Inspection Bodies, four Halal Product\nProcess Assistance Institutions, five halal product assurance training\ninstitutions and three professional certification bodies.<\/p>\n
In 2021, the ministry launched the Indonesia Halal Industry Awards\n(IHYA) to raise awareness, encourage and recognise industry\nparticipants, and promote the sector to businesses and consumers. At the\ninaugural IHYA, 145 companies entered independently; the awards have\nbeen held annually since. Participation rose to 1,091 companies for the\n2026 edition.<\/p>\n
The most notable shift in recent years has been how the sector is\nviewed. The halal industry is no longer treated solely as a matter of\ncertification, but is linked to broader priorities such as\nindustrialisation, trade barriers, deeper industrial structures, higher\nproduction capacity utilisation and investment, and the development of\nindustrial estates. The rationale is that halal products require raw\nmaterials, machinery, packaging, laboratories, workers, financing and\nlogistics, all of which should increasingly be available\ndomestically.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/assessing-the-halal-industrys-readiness-for-the-mandatory-certification-deadline-1791903151", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }