Halal Industry Strategies for Capturing the Potential of US$2 Trillion in the Global Market

The halal industry in Indonesia is becoming a new force amid global trade challenges, with a value reaching more than US$2 trillion

Halal Industry Strategies for Capturing the Potential of US$2 Trillion in the Global Market
Visitors view Muslim clothing sold during the Halal Fair 2025 in Jakarta, Saturday (23/8/2025). Photo: Antara/Putra M. Akbar/bar.

Indonesia is not only the country with the largest Muslim population, but also a center for food, fashion, and tourism with halal labels. However, there are still challenges to becoming a leader in the global halal industry with a global trade value of more than US$2 trillion.

Secretary General of the Ministry of Industry, Eko Cahyanto, believes that Indonesia has the opportunity to become a pioneer in the halal industry.

“Indonesia's potential to become a leader in the global halal industry is very possible. The key is the synergy of stakeholders,” said Eko when met at the press conference for Halal Indo Expo 2025, at the Ministry of Industry, Jakarta (22/09/25).

Eko explained that the thematic development of halal is currently no longer just about compliance with regulations. However, it has developed into part of a modern lifestyle that represents quality, safety and sustainable products.

According to Eko, the halal principle is present not only in consumer products, but also in the supply chain, services and daily lifestyles. "This ecosystem provides added value for industry, while strengthening the competitiveness of national products in the global market," he said.

Referring to Law Number 59 of 2024 concerning the National Long-Term Development Plan (RPJPN), one of the policy directions for developing the processing industry is to make Indonesia the center of the world's halal industry.

From year to year, the contribution of the halal sector to the Indonesian economy continues to increase. In 2024, the halal industry contributed 5.03% to economic growth with export value reaching US$64 billion.

As of the second quarter of 2025, the Halal Product Assurance Organizing Agency (BPJH) has issued 654,518 halal certificates for UMKM products.

Facing challenges

As an industry player, Okta Wirawan, the owner of Almaz Fried Chicken, hopes that Indonesia can become a leader in the global halal industry due to its enormous potential.

The problem is that in running his business, Okta still encounters challenges, especially in taking care of halal certification. "The procedure is quite complicated because there are many processes to go through, which takes time," Okta told SUAR in Jakarta (22/9).

The length of the halal certification process is causing business actors to start giving up. In fact, halal certification is important as the identity of halal products in Indonesia.

Therefore, Okta hopes that the government can simplify the halal certification process to increase business competitiveness.

"The complex halal certification application process and the lack of optimal socialization of the certification assistance program make it difficult for many UMKM," said Okta.

In response, Eko said that there are two challenges that Indonesia still faces in developing the halal industry. First, Indonesian halal products must compete with products from non-Muslim countries that are starting to develop halal products. Second, there are not many products that have halal certification.

According to Eko, to face these challenges and realize the potential of the halal industry, synergy and coordination are needed from various stakeholders – from the government to the business world.

Eko explained that the factor that supports the halal industry in Indonesia is the largest Muslim population in the world. "This bonus must be used as well as possible," said Eko.

In addition, Indonesia has a diversity of products that not only includes food, but also extends to halal beverages, cosmetics and pharmaceuticals.

Therefore, the Ministry of Industry's Halal Industry Center is preparing six main programs, starting from the preparation of technical policies, strengthening infrastructure, developing human resources, facilitating the halal industry, promoting and collaborating, to supervising and controlling.

Halal Indo Expo 2025

Eko said that one of the Ministry of Industry's strategies to strengthen Indonesia's role in the global halal industry supply chain is to participate in the Halal Indonesia International Industry Expo 2025 (Halal Indo Expo 2025) which will be held at the Indonesia Convention Exhibition (ICE) BSD, Tangerang, Banten, on 25 September – 28 September 2025.

The Halal Indo Expo 2025 event is being held by the Ministry of Industry in collaboration with PT Dyandra Promosindo. Carrying the theme "Experience the Diversity of Indonesia’s Halal Industry: Shaping the Future of Global Halal Industry", this expo presents 128 industry players and associations from various sectors, ranging from food and beverage, pharmaceuticals, cosmetics, textiles, miscellaneous, to halal industrial areas.

In addition, there is also an opportunity to learn more about the halal industry through various interesting and interactive activities. These include a workshop on painting halal tableware, halal batik drawing, non-alcoholic perfume mixing, a make up class using halal cosmetics, decorating bento cakes, and mixing herbal medicine and spice tea.

The Halal Indo Expo 2025 will also feature the Indonesia Halal Industry Awards (IHYA). This award is a form of appreciation given by the Ministry of Industry to stakeholders who have actively contributed to the development of the national halal industry over the past five years.

This year's awards will be given to large and small-medium industrial companies – in the food and beverage, cosmetics, pharmaceutical and traditional medicine, textile/apparel, and ceramics (tableware) sectors.

In addition to presenting superior halal products, the Ministry of Industry will also present the Industrial Festival 2025 as a forum for cross-sector collaboration in showcasing innovation, creativity and national industry achievements.

This year is the second festival. This reinforces the Ministry of Industry's consistency in presenting a space for interaction between the industrial world and the wider community – especially the younger generation.

A number of workers peel shallots at a small halal-certified fried shallot processing industry in Palu, Central Sulawesi, Monday (22/9/2025). Photo: Antara/Basri Marzuki/rwa.

Meanwhile, the President Director of PT Dyandra Promosindo, Daswar Marpaung, explained that Halal Indo Expo 2025 will be held in Halls 6 and 7 of ICE BSD, presenting more than 300 exhibitors, including those from abroad, such as Malaysia, the United States, China, Singapore and Thailand.

"This year will be even more lively. Halal Indo Expo has become the focus of international participants, and has even entered the circle of world halal exhibitions which ends in Istanbul," he said.

Daswar mentioned a target of 15,000 visitors in four days of the exhibition. To attract public interest, various programs have been prepared. Among others, the Halal Modest Fashion Show, Halal Connect Forum, talkshow on halal lifestyle, as well as education about halal tourism and halal industry regulations.