Indonesia towards the Center of Halal Producer

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The demand for halal products by global consumers has increased every year. With an estimated world Muslim population reaching 2.2 people in 2030, the halal industry’s economic figure will also continue to accelerate. This is a huge opportunity that Indonesia must take advantage of, by meeting the global needs for halal products with exports from Indonesia.

This was conveyed by the Vice President of the Republic of Indonesia, Prof. Dr. (HC) KH. Ma’ruf Amin in a national strategic webinar entitled Indonesia Towards the Center for World Halal Producers which was held by the National Islamic Finance Committee (KNEKS) some time ago.

To become the world’s largest exporter of halal products, Indonesia needs strategic steps carried out by relevant stakeholders, including through strengthening the halal product industry and the establishment of halal industrial estates and halal zones in existing industrial estates.

“That way, the capacity of the Indonesian halal product industry can be significantly increased, integrated, of higher quality, and globally competitive. In addition, the growing and developing halal industrial area is expected to attract global investors to make Indonesia a global hub for the world’s halal products,” said Ma’ruf Amin.

The issuance of a regulation on the Government Regulation of the Ministry of Industry Number 17 of 2020 concerning Procedures for Obtaining a Certificate in the Context of Establishing a Halal Industrial Zone is the first step in developing an integrated halal area in Indonesia. The entire series is to produce halal products in one service or one stop service.

In recent times, there are already two halal industrial areas in Indonesia, the Modern Cikande Industrial Estate in Serang, Banten and the Safe n ‘Lock Industrial Park in Sidoarjo, East Java. However, Ma’ruf Amin said that this halal industrial area could not stand alone because it was part of the national and global halal industry ecosystem.

The data on the halal industry in Indonesia is also not clearly reflected, so there is a need for coding that can integrate the certification of halal products with trade data and economic data. That way, statistics on trade data for Indonesian products and APBN funds to support the development of halal products in the future can be carried out and monitored properly.

Another thing that also needs attention is the halal certification program for export products. If implemented strongly, it will make Indonesian products count and have global competitiveness, open up wider market access, and attract demand from export destination countries.

“The certification of halal export products is expected to be interpreted by exporters as added value to their products which will lead to increased demand for Indonesian halal products, so that it will have an impact on Indonesia’s trade balance,” explained Ma’ruf Amin.

To facilitate the halal certification, we need a halal certification system and process that is easy, efficient, and effective, and can have a high-quality value. These factors make Indonesian products able to compete with other product standards, domestic and even global.

“It must start with building traceability to raw materials for animal products, fisheries, semi-finished products, until the final product is ready for use by consumers,” said Ma’ruf Amin.

Traceability can only be carried out with all parties involved in the halal supply chain, which includes production, packaging, transportation, and marketing networks that comply with Halal Assurance System (SJH) standards.

LPPOM MUI has implemented traceability in the halal certification process for the past 31 years. This principle ensures a product comes from halal materials and processes that are free from unclean or haram. This is evidenced by documents that can show the source of the material and the process.

Apart from traceability, authentication and assurance are two other principles that LPPOM MUI always implements in the halal certification process. This is to provide a sense of peace to the public, especially Muslims, in consuming a product. (YN)

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