The Halal Industry Has A Multifold Effect On The Economy

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REPUBLIKA.CO.ID, JAKARTA — The Ministry of Industry believes that strengthening the halal industry will expand Indonesia's contribution to international trade, strengthen foreign exchange reserves, and open new jobs in various sectors. The development of the halal industry is called to be an important part of the transformation of the national economy that is competitive and sustainable.

Minister of Industry Agus Gumiwang Kartasasmita said that the halal industry has a close relationship between upstream and downstream sectors, which has the potential to cause a multiplier effect for the national economy. Growth in the downstream sector, he added, will drive increased demand in the upstream sector and create layered added value across the industrial supply chain.

“With the breadth of these linkages, the halal industry has a great potential multiplier effect for the national economy,” Agus Gumiwang said in his speech at the signing of a memorandum of understanding and cooperation agreement between the Ministry of Industry and the Halal Product Assurance Organizing Agency (BPJPH) in Jakarta, quoted on Wednesday (12/11/2025).

This cooperation is an important momentum in building a resilient, competitive, and sustainable ecosystem of the national kosher industry. Collaboration between the Ministry of Industry and BPJPH includes coaching, supervision, certification, data integration, to the development of infrastructure supporting the halal industry sector.

According to the Ministry of Industry, the collaboration will speed up the halal certification process, increase the added value of products, and expand the contribution of the halal industry to the national economy. The move is also expected to strengthen the socio-economic resilience of the country.

Indonesia's performance in the global halal ecosystem shows positive achievements. Based on the State of the Global Islamic Economy Report (SGIER) 2024/2025, Indonesia ranks third in the world with a score increase of 19.8 points, which is the highest increase compared to any other country. Indonesia's leading sectors include modest fashion, pharmaceuticals and cosmetics, as well as halal food, which is now ranked fourth in the world.

The Ministry of Industry estimates that the potential can be optimized to attract investment in sectors related to the halal industry, including sharia finance. He reiterated that the halal industry will be a source of new economic growth as well as job creation in the country.

Meanwhile, BPJPH Head Ahmad Haikal Hasan affirmed that halal certification is not just an administrative obligation, but rather an instrument of protection and strengthening of the national industry so that local products can compete in the global market.

“Halal is now a symbol of health, hygiene, and quality of national products,” he said.

Haikal said that BPJPH is currently able to process more than 10,000 halal certificate applications per day, which is expected to boost domestic industry productivity and expand the reach of MSMEs in the international market.

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