Halal Certification: The Driving Force of Indonesia's Economy and Islamic Banking
From a Religious Label to a Global Lifestyle
Formerly viewed merely as a label, halal has now become a lifestyle. Indonesia currently holds the top rank with approximately 242 million Muslims, equivalent to 87% of the total population (CNBC Indonesia, 2026). By the end of April 2026, the BPJPH has issued more than 3,938,160 halal certificates for over 12,789,963 products. The BPJPH is now opening a quota of 1.35 million free halal certifications (SEHATI) for SMEs in 2026, with mandatory halal certification for food and beverage products commencing on 17 October 2026.
‘Trade Passport’ to the World Market
The halal certificate is an international ‘trade passport’. According to the State of the Global Islamic Economy (SGIE) Report 2025/2026, global Muslim consumer spending has reached a significant value of approximately US$2.8 trillion (Dinar Standard, 2025:22). As the country with the largest Muslim population, Indonesia plays a key role, with its halal economic contribution estimated at 10-15% of the total global market, positioning it as a potential major player as the world’s halal centre.
Indonesian halal product exports show a positive growth trend of 7.08%. The value of Indonesian halal product exports in 2024 reached USD 51.4 billion, or a 1.70% year-on-year (yoy) increase, dominated by the food and beverage sector with an 81.16% contribution (Purwowidhu, 2025). This presents significant opportunities for SMEs to participate in the global supply chain. With globally recognised halal certificates, our SME products now have a golden ticket to penetrate international markets, particularly in the Middle East (OIC) region and ASEAN.
Synergy in Islamic Banking: A New Engine for GDP
The halal economy has now become a new engine for national economic growth. Currently, the halal sector contributes around 4% to 5% to Indonesia’s Gross Domestic Product (GDP). This is where Islamic banking plays a vital role as the financial backbone.
Halal certificates and syariah finance are now interconnected and serve as the main key to strengthening the halal industry ecosystem in Indonesia. The halal certificate functions as a strategic instrument that facilitates business actors in accessing syariah financing schemes, such as Mudharabah (profit-sharing) and Murabahah (cost-plus financing). With valid halal certificates, financial institutions now have better risk mitigation standards in channelling capital to the real sector.
The results are tangible. OJK’s Executive Head of Banking Supervision, Dian Ediana Rae, revealed that Islamic banking assets reached Rp1,067.73 trillion as of December 2025, reflecting an 8.92% annual year-on-year (yoy) growth. Approximately 30% of total financing in Islamic banking is contributed specifically to the halal sector (Indonesiasatu.co, 2026). This indicates that Islamic banking is increasingly focused on productive sectors with a loyal consumer base in Indonesia.
Digital Innovation: Convenience in the Palm of Your Hand
Several syariah fintechs and digital banks such as Bank Syariah Indonesia (BSI), Bank Muamalat Indonesia, BTN Syariah, BCA Syariah, and Maybank Syariah have undertaken major innovations by integrating direct halal certification verification features into their applications. This step represents a revolution in convenience for business actors to prove their syariah compliance in real-time when applying for loans, and it supports the Syariah People’s Business Credit (KUR) programme. Through this programme, halal SMEs seeking capital injections with syariah principles without conventional interest burdens are facilitated, enabling them to compete in the global market.
Social Impact: Job Creation and Financial Inclusion
The integration of the halal industry with the syariah financial sector is projected to create up to 2 million new jobs across various sectors, from halal auditors, halal product process assistants, halal slaughterers, halal supervisors in factories, to SMEs that upgrade their operations. Additionally, this ease of access to financing through halal certification is predicted to increase financial inclusion for more than 70% of Indonesia’s Muslim population. Communities previously unreachable by banking services now have access to fairer and more transparent business capital.