Indonesia's Halal Pharma Sector Thrives Globally But Faces 90% Import Dependency

Indonesia has achieved a global fourth-place ranking in the halal pharmaceutical and cosmetics sector, yet a fundamental challenge persists: a staggering 90% reliance on imported raw materials. This dependency hinders the nation's potential to become a major player in the burgeoning global halal market.

Murniati Mukhlisin, a researcher at the Center of Sharia Economic Development (CSED) INDEF, highlighted that Indonesia possesses substantial opportunities, fueled by a large domestic consumer base and increasing worldwide demand for halal products. The global halal cosmetics market is projected to grow from $92 billion in 2024 to $124 billion by 2029, with the halal pharmaceutical market expected to expand from $112 billion to $146 billion in the same period.

Despite this potential, the industry's growth is not being optimally leveraged. A key obstacle is the limited national innovation capacity for high-value-added halal pharmaceutical and cosmetic products capable of competing internationally. This reliance on foreign raw materials weakens Indonesia's competitiveness compared to nations that have already established self-sufficiency in their upstream industries.

Murniati emphasized that developing the halal industry requires more than just product certification. The government must implement integrated policies covering raw material development, research and development, investment incentives, technological adoption, and export promotion. Harmonizing policies across ministries and institutions is also crucial. She suggested that technologies like blockchain and artificial intelligence (AI) could enhance traceability, transparency, and efficiency in the halal ecosystem, from raw material sourcing to final product verification and certification.

“

The halal pharmaceutical and cosmetic industry in Indonesia has a great opportunity to grow in line with the increasing global demand for halal products.