Trade Deals Can Boost Indonesia's Halal Product Exports, Researcher Says

Indonesia has a significant opportunity to bolster its domestic industries and increase exports of halal products through strategic trade agreements, according to Abdul Hakam Naja, a researcher at the Center for Sharia Economic Development (CSED) Indef.

Naja emphasized that Indonesia must actively seize these opportunities to transition from being merely a consumer market to a prominent producer and exporter within the global halal supply chain. "If there is a deficit, that is precisely where we must look for opportunities," he stated, advocating for strengthening domestic industries to achieve this goal.

“

If there is a deficit, that is precisely where we must look for opportunities. We need to seize these opportunities by strengthening domestic industries so that Indonesia is not only a market, but also a producer and exporter of halal products.

To effectively compete in the global market, Naja highlighted the need for parallel efforts in enhancing national industrial capacity and reinforcing certification processes. He pointed to the potential of trade cooperation with countries like the United States, citing the 2026 agreement as a pathway for exporting products such as cosmetics, medical devices, and manufactured goods.

“

The Muslim population worldwide continues to grow. In 2024, its numbers reached around 2.1 billion and are projected to be even larger in the future. This is not just a demographic issue, but a very large economic market for the halal industry.

The growing global demand for halal products, driven by a rising Muslim population projected to reach over 2.1 billion by 2024, presents a substantial economic market for Indonesia. Naja cited Malaysia as a successful example of leveraging foreign direct investment (FDI) and trade diplomacy, including agreements with the UAE and the US, to establish itself as a major halal manufacturing hub, particularly for food and pharmaceuticals.

"The growing Muslim population worldwide is not just a demographic issue but represents a very large economic market for the halal industry," Naja explained. He believes that similar strategic investments and diplomatic efforts could significantly enhance Indonesia's position in the global halal economy.

“

The large foreign direct investment that has entered also strengthens Malaysia's position as a halal manufacturing base.