YARSI Sharia Expert: Governance is Indonesia's Biggest PR for the Halal Industry

Indonesia possesses significant potential to become a dominant force in the global halal industry, but realizing this ambition hinges on more than just its large Muslim population and domestic market. Experts stress that robust governance and a strengthened ecosystem are paramount for the nation to effectively compete on the international stage.

Dr. Any Setianingrum, a sharia economics expert at YARSI University, stated that Indonesia's primary challenge is no longer demand creation but rather establishing governance that enhances the competitiveness of its halal industry. "If we want to be a major player in the global halal industry, we cannot just rely on the large market. What must be strengthened is governance, transparency, institutions, and the ecosystem," she explained.

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If we want to be a major player in the global halal industry, we cannot just rely on the large market. What must be strengthened is governance, transparency, institutions, and the ecosystem.

Setianingrum pointed to countries like Thailand, which has successfully built a halal ecosystem despite not being a Muslim-majority nation, as examples. The success of these nations, she noted, stems from integrated standards, research, certification, promotion, and policy support, rather than solely market size. This perspective aligns with the State of the Global Islamic Economy (SGIE) Report 2025/2026, which ranks Indonesia fourth in the Global Islamic Economy Indicator (GIEI), behind Malaysia, the UAE, and Saudi Arabia.

The SGIE report further indicates that future Islamic economic competitiveness will be determined by the integration of halal standards, sharia finance, trade, innovation, and supply chains, not just market demand. While Indonesia ranks third globally in halal food and fourth in halal cosmetics and pharmaceuticals, it has not entered the top five in sharia finance. Setianingrum emphasized that a strong industrial foundation, supported by an ecosystem connecting businesses, financial institutions, certification bodies, academics, and government, is essential for growth and global trust. She also highlighted the need for innovation and technology, including artificial intelligence, to boost transparency and oversight in the halal industry.

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If we only talk about halal certification, it is not enough. What is needed is an ecosystem that allows the halal industry to grow, be competitive, and be trusted by the global market.