By: Prof. Khaswar Syamsu, Ph.D.
Head of the Halal Science Center (HSC) IPB and Chairman of the Expert Board of The Assessment Institute for Foods, Drugs and Cosmetics Indonesian Council of Ulama
The global halal market has now become a magnet for the world economy. Its rapid growth is driven by the increasing Muslim population and rising awareness of the importance of quality, safe, and ethical products. However, amid this enormous opportunity, Indonesia the country with the largest Muslim population in the world has not yet fully become a major player in the global halal industry.
To transform from a consumer into a producer and global leader, Indonesia requires a comprehensive strategy that integrates science, technological innovation, and the strengthening of the Halal Product Assurance System (SJPH) across the entire supply chain. The journey toward becoming a global halal hub is a long one, requiring cross-sector synergy—from research laboratories to industry, and from policymaking to consumer awareness.
The Global Halal Market Landscape and Indonesia’s Position
The command to consume halalan thayyiban products, as stated in QS. Al-Baqarah: 168, is not only a religious obligation but has also generated a significant new market force. Today, “halal” has evolved into a symbol of quality, cleanliness, and a modern lifestyle accepted across religions and cultures.
The State of the Global Islamic Economy (SGIE) Report 2024/2025 notes that approximately two billion Muslims—around 25 percent of the world’s population—spent US$ 2.43 trillion in 2024 on halal products across various sectors, including food, beverages, pharmaceuticals, cosmetics, and tourism. This figure is projected to increase to US$ 3.36 trillion before 2028, in line with the global Muslim population reaching 2.2 billion by 2030.
However, reality reveals a paradox: the five largest exporters of halal products are non-Muslim countries—China, India, Brazil, Russia, and the United States. Meanwhile, Muslim-majority countries such as Saudi Arabia, the United Arab Emirates, Türkiye, Malaysia, and Indonesia remain among the largest importers of halal products.
According to the SGIE Report 2024/2025, Indonesia ranks third in the global Islamic economy indicator, below Malaysia and Saudi Arabia. Although Indonesia excels in the Muslim fashion sector (ranked first), it lags behind in the halal food sector, which has dropped to fourth place after Malaysia, Singapore, and the United Arab Emirates.
This condition highlights that having a large Muslim population alone is not sufficient to position Indonesia as a global halal hub. Without strengthening science, innovation, and a robust Halal Product Assurance System (SJPH), Indonesia will remain a potential market rather than a leading producer in the global halal industry.
Science and Innovation: The Foundation of Halal Industry Competitiveness
To shift Indonesia’s position from consumer to producer, scientific intervention and innovation are essential. Both not only ensure the halal status of products but also improve efficiency, quality, and independence within the national halal industry.
Several crucial areas of research and development include:
1. Production Process Efficiency
Science and innovation play a significant role in improving product quality and the efficiency of production processes so that Indonesian halal products can compete in terms of both quality and price. Research on process optimization, production management, and the application of modern technologies can reduce costs while enhancing global competitiveness.
Halal Alternative Ingredient Research
Dependence on imported raw materials that may be non-halal—such as gelatin and collagen derived from pigs or non-halal cattle—remains a major challenge. These materials are widely used in the food, pharmaceutical, and cosmetics industries.
Therefore, research on halal substitute materials derived from local resources is essential—for example, gelatin from fish skin, collagen from fisheries by-products, or plant-based biomaterials for pharmaceutical capsules. The development of halal enzymes as substitutes for trypsin, pepsin, and other enzymes that are still derived from non-halal sources is also an important step toward strengthening the independence of Indonesia’s halal industry.
Digitalization and Traceability
Consumer trust is the primary capital of the halal industry. Digital innovations such as blockchain and the Internet of Things (IoT) can create traceability systems that are transparent, accountable, and tamper-proof—ensuring halal integrity from upstream to downstream. The development of an e-halal system will also accelerate certification processes and facilitate supervision.
Testing and Detection of Non-Halal Ingredients
Research and development of rapid testing tools and analytical methods based on DNA (PCR), spectrophotometry, chromatography, and advanced technologies such as volatilomics have become the frontline in detecting contamination by non-halal substances such as pork and alcohol. The reliability of these technologies determines the credibility and efficiency of the halal certification process.
R&D and Industry Collaboration
The downstream application of research results from universities and research institutions into industry is an important step. The development of Halal Science Techno Parks and Halal Incubators is needed as a bridge to strengthen synergy between researchers and business actors so that innovations can be effectively implemented in practice.
SJPH: The Pillar of a Sustainable Halal Ecosystem
Science and technology represent only one side of the coin. The other side is a guarantee system that ensures all processes operate consistently and with integrity. This is where the Halal Product Assurance System (SJPH) plays a vital role as the primary foundation of a sustainable halal ecosystem.
Several strategic steps to strengthen SJPH include:
1. Integrating SJPH from Upstream to Downstream (Farm to Fork)
The Halal Product Assurance System (SJPH) must be implemented comprehensively at every stage of the supply chain—from raw materials in farms or plantations, production processes, and distribution, to the consumer’s table. Every business actor must implement SJPH to ensure the halal integrity of the final product.
Strengthening Halal Human Resources
Competent human resources are essential to the successful implementation of SJPH. Competency-based education and training should be developed for strategic professions such as:
- Halal Slaughterers (Juru Sembelih Halal/Juleha) and Halal Supervisors at slaughterhouses, who play a critical role in the meat supply chain. Data from the Halal Product Assurance Agency (2025) show that the number of halal-certified slaughterhouses is still relatively low—66.8% for slaughterhouses and 54.4% for poultry slaughterhouses.
- Halal Supervisors and Halal Auditors, both in industry as internal auditors and in the Halal Inspection Body (LPH) as external auditors, are crucial for accelerating the halal certification process accurately and with integrity.
Positioning Indonesia’s SJPH as a Global Standard
With the largest Muslim population and a continually evolving system, Indonesia has the potential to establish SJPH as an international reference. As the saying goes, “the buyer is king.” As the largest halal market, Indonesia can require the implementation of SJPH for all producers and overseas halal certification bodies seeking to enter the domestic market.
Development of Supporting Infrastructure
Halal Industrial Parks supported by fiscal and non-fiscal incentives will accelerate the growth of the domestic halal industry. These industrial zones play an important role in promoting halal product exports and strengthening competitiveness in the global market.
Indonesia’s journey toward becoming a global halal hub is a long marathon that requires consistency, collaboration, and the courage to innovate. Having the largest Muslim population in the world is a strong starting point, but success will only be achieved through transformation into an innovative and highly competitive producer.
This transformation must be driven by synergy between science, innovation, and the Halal Product Assurance System (SJPH). From laboratories to industry, from research to policy, all elements must move in harmony. Efficient production processes, independence in halal raw materials, advanced detection technologies, and digital traceability systems must go hand in hand with strengthening SJPH, human resources, and supporting infrastructure.
Through these strategic and collaborative steps, Indonesia can become not only the largest halal market but also a leading producer and a global role model in halal integrity. InsyaaAllah. (***)
Source: Jurnal Halal 176
https://halalmui.org/jurnal-halal/176/
