The CEO of Uniter Arab Emirate's Standard Dinar, Rafi-uddin Shikoh - Photo by Standard Dinar

JAKARTA (TheInsiderStories) – The Indonesia Halal Lifestyle Center (IHLC) will launch the Indonesia Halal Economy and Strategy Roadmap for 2018 and 2019 in November. The road map is the result of the collaboration between IHLC and United Arab Emirates’s Dinar Standard.

The CEO of Standard Dinar, Rafi-uddin Shikoh said that increasing halal ecosystems could contribute to a very significant amount of the Indonesian economy starting from GDP, employment to export-import.

Economically, he explained, halal product exports could contribute around US$5.1 – 11 billion per year to GDP, additional employment from 170 thousand to 333 thousand jobs, and import substitution of up to 500 million US dollars.

In addition, Shikoh added, the significant impacts can also occur on Indonesia’s position in the global halal industry. With the potential of resources and a large market, Indonesia can rank first as an industrial center.

Indonesia is targeting the evolution of GDP of US$4 trillion in 2025 and $15 trillion in 2045 to 2050. By utilizing the halal ecosystem, this goal is very possible. According to him, Indonesia can focus on maximizing halal food and tourism.

At present, Indonesia is still the biggest market and consumer. In the 2017 global halal economic market share of $2.1 trillion, Indonesia ranks first as a halal economic consumer country of around 10 percent followed by Turkey, Pakistan, Egypt and Saudi Arabia.

However, the export value is only 3.8 percent of the total global halal market. That is, to meet domestic needs alone, Indonesia still has to rely on imports.

“Even though Indonesia’s potential in the halal industry is very large and can be maximized, it not only meets the domestic market but also internationally,” he said. This halal industry includes food, tourism, pharmaceuticals, cosmetics, media, fashion and Islamic finance.

According to data from the State of the Global Islamic Economy Report for 2017 and 2018, Indonesia’s greatest potential is in the halal food industry. Specifically, Indonesia’s halal food sector in 2016 reached $169.7 billion or 13.6 percent of the total global market share. In 2022 the figure is predicted to be $263.1 billion.

While for Islamic finance around 3 percent worth $66 billion of the total global market share. Halal travel occupies 5.7 percent with worth of $9.7 billion, 5.3 percent fashion with amount of $13.5 billion, 4.5 percent pharmaceuticals worth $3.7 billion and 10 percent cosmetics worth $5.7 billion.

In total, Indonesia’s achievements in the halal industry in 2016 were $268.3 billion. In 2017, it was $214 billion. While the target in 2022 is estimated at around $426.6 billion.

“This target can certainly be achieved if all potentials are used properly, because millennial Indonesia will grow so rapidly that it can be empowered,” he said.

According to the Pew Research Center 2011, global millennial will grow to 700 million by 2027. While the Moslem population is projected to reach 2.2 billion people by 2030. Global halal market value is estimated to be $3.1 trillion in 2022.

Moslems spend their money on the halal market estimated at around $2 trillion in 2017. With the details, spending on the halal food sector is around $1.24 trillion, fashion $254 billion, pharmaceutical and cosmetics that is $83 billion and $57.4 billion, US $198 billion, US media and entertainment and the tourism sector are $169 billion.

Shikoh said Indonesia was an Islamic Cooperation Organization’s country with the largest export value to other OIC countries. But it only occupies 3.3 percent of the global halal export market share of US $ 7.6 billion.

The top five positions are occupied by non-Muslim countries. Like Brazil around 18 billion US dollars, the United States (US) around $17 billion, India around $15.5 billion, China around $15 billion and France around $13 billion. Followed by Russia, Germany, Argentina, Australia and Indonesia.