President Widodo Inaugurates Halal Park in Jakarta
President Joko Widodo when inaugurating Halal Park in Jakarta, Tuesday (04/16). Photo by TheInsiderStories.

JAKARTA (TheInsiderStories) – Indonesian President Joko Widodo inaugurated on Tuesday (04/16) Halal Park at the Bung Karno Sports Stadium in Senayan, Central Jakarta. A bigger version of the park called the Halal Lifestyle District will begin construction in the next year or two, he said.

The halal industry have a potential market segment in the country, he said. The halal transaction is projection to reached US$3.7 trillion this year, up from 2013 demand of only $2 trillion. Widodo said, This 9.5 percent growth is recognized as very high growth.

The Halal District will occupy 21,000 square meters of land with a total investment of $17.75 million. Reportedly, it will be constructed by state-owned construction company PT Wijaya Karya Tbk (IDX: WIKA). He added, the construction has been prepared by the government since 2018.

“Halal Park is an embryo of halal district development that will also be built here. It will be built approximately 21,000 square meters of buildings and the space to reach a building investment of Rp250 billion, will be done here,” said Widodo at the inauguration in Jakarta, Tuesday (04/16).

According to him, the halal tourism industry has been established as the leading sector or the main driver for the development of the halal industry. Global Islamic Economy reported Indonesia is in the second place for the fashion model sector, and the global moslem fashion market value until 2020 is estimated to reach $327 billion.

As a country with the largest Moslem population in the world, the development of Indonesia’s halal industry is very rapid. Widodo said, according to the Global Moslem Travel Index 2019, Indonesian halal tourism won first place. Then SUKUK also developed four times. He added, last month, the retail SUKUK SR011 series sold around Rp20 trillion ($1.43 billion).

In 2018, there are 140 million Moslem tourists with the value of online shopping up to $35 billion. The number of world moslem tourists also continues to increase from year to year, and in 2020 it is projected to reach 150 million people.

“This means that there is a market segment that must be tackled seriously. My target is five million people or a quarter of the target or growing 42 percent from last year,” Widodo said.

He hopes that the halal industry can become a motor of economic growth. In addition, he wants the creativity and productivity of the younger generation to be better able to be a source of welfare for the people.

The CEO and co-founder of moslem fashion brand HIJUP, Diajeng Lestari, claimed Halal Park has become a vehicle for collaboration in the halal lifestyle industry because of its focus on facilities, food, and tourism. She believes that the halal lifestyle must be inclusive because it contributes positively to a more sustainable human lifestyle.

“Halal District is expected to be a place for buying and selling, Islamic finance, halal tourism and halal industry education in Indonesia. The hope is that this can be a model for other countries and Indonesia can become a halal center in the world,” she said.

She added, according to the report of the Indonesian Halal Lifestyle Center, in the upcoming 2025, it is predicted that growth will grow by around 5.3 percent from six sectors that represent the halal industry in Indonesia. Therefore, increasing the expenditure of halal products by domestic communities should be able to be captured by local industries.

Economically, she added, halal product exports could contribute around $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.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com