Indonesian government is determined to spur the development of industrial halal estates to boost the national economy, said one official this week - Photo by the Industry Ministry Office

JAKARTA (TheInsiderStories) – Indonesian government is determined to spur the development of industrial halal estates to boost the national economy, said one official this week. The country had launched the Indonesian Sharia Economic Master Plan 2019 – 2024 which aims to develop halal industry.

“In the master plan, one of the main strategies is to strengthen the value chain of the halal industry from upstream to downstream, including by building halal industrial areas and halal hubs in various regions in accordance with the comparative advantages of each superior region,” said the director general at the industry ministry, Dody Widodo in one talk show.

He continued, the Islamic economy and finance will become a new economic driver and Indonesia and has the potential to become the largest player in the world. The halal industry has the potential to become a halal production base for Asian and Middle Eastern countries. For the domestic market itself, there needs to be an increase in consumption and the need for halal products.

“The consumption value of Indonesian halal products in 2018 reached US$220 billion, and is projected to increase to $330.5 billion in 2025,” he asserted.

Seeing the great potential, the ministry together with other stakeholders is trying to accelerate sharia economy growth from a regional aspect by encouraging the preparation of a halal industrial ecosystem with the issuance of of the minister of industry regulation Number 17 of 2020. The regulation is a guide for industrial estate managers in improving infrastructure facilities and infrastructure to support halal industrial activities.

It also as a guide for the halal industry in the creation of a halal industrial agglomeration that is centralized and located in the halal industrial area. Widodo stated, to date, there have been two applications for verification of the halal industrial area, namely the Cikande Modern Industrial Zone with an area of ​​500 hectares in Serang, Banten and the Safe n Lock Industrial Area covering 100 hectares in Sidoarjo, East Java.

“Then, four other halal industrial areas preparing to develop are the Bintan Inti Industrial Area with an area of ​​6.5 – 100 hectares in Bintan, Riau Islands, the Batamindo Industrial Area of ​​17 hectares in Batam, Riau Islands, Jakarta Pulogadung Industrial Area, and 146.5 Ha Surya Borneo Industrial Zone in West Kotawaringin, Central Kalimantan,” said the official.

Widodo also sees that industrial estates managed by state-owned enterprises or local governments such as the Makassar Industrial Zone, the Archipelago Bonded Zone, the Tenayan Industrial Area, and the Wijayakusuma Industrial Zone are also studying the development patterns of the halal industrial area.

Written by Editorial Staff, Email: theinsiderstories@gmail.com