JAKARTA (TheInsiderStories) - Vice president, Ma’ruf Amin, believed Indonesia become the world’ largest halal producer by 2024, considering 87 percent of the nation’ population are Moslem. While, finance minister, Sri Mulyani Indrawati sees the total potential value of Indonesian halal food exports could reached US$229 million.
“We must be able to exploit the potential of the world’ halal market by increasing our exports, which currently only account for 3.8 percent of the total global halal market,” he told the virtual seminar’ participant on Saturday (10/24).
Referring to the 2019 Global Islamic Economic Report, he said, the largest halal producer in the world is Brazil, whose exports are valued at $5.5 billion and Australia with total exports worth of $2.4 billion. The global demand for halal products in 2018 stood at US$2.2 trillion and is projected to touch US$3.2 trillion by 2024, he adds.
Amin stated, with an estimated Moslem population could reach 2.2 billion people in 2030, the global halal industry market economy will continue to increase rapidly. He asserted, this is a huge potential that Indonesia must take advantage to meet the global needs through export of halal products from Indonesia.
Currently, said Indrawati, Indonesia exported halal products to 29 Moslem-majority countries, which was an area that could still be improved. The top 10 halal food products include crude palm oil and its derivatives.
So far, she continued, the government has provided fiscal incentives to encourage investment and to boost the halal products export. She highlighted the incentives in form of tax holidays, tax allowances, import income tax, and super deduction for vocational research and training.
Then, incentives from customs and excise are exemption or return of import duty to Export Destination Import Facility companies, government-borne import duties for certain industries, and other. From value-added tax facilities include deductions for capital goods, health and education services, social services, and export services. Also, special facilities to support halal products include facilities in special economic zones, free trade zones, and industrial areas.
To support the halal products industry, recently the country had launched the Indonesian Sharia Economic Master Plan 2019 – 2024 which aims to develop halal industry. According to he director general at the industry ministry, Dody Widodo, one of the main strategies is to strengthen the value chain of the halal industry from upstream to downstream, including building halal industrial areas and hubs in various regions in accordance with the comparative advantages of each superior region.
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
