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LPPOM MUI

Opportunities and Challenges of the Halal Food and Beverage Industry

Indonesia is not only potential as the largest halal food market share, but also the largest halal food producer with the wealth of its natural resources. However, these opportunities have not been maximally utilized.

As a legal umbrella for halal products in Indonesia, Act no. 33 of 2014 concerning the Halal Products Assurance Act has not yet felt a significant effect on the growth and acceleration of the halal industry. This is because the halal industry, especially the halal food and beverage industry, is still constrained by several aspects.

One of them is demand and the market. The number of Indonesian Muslims and the world continues to increase from time to time. The Sharia Economic Master Plan of the Republic of Indonesia 2019-2024 notes, the growth of middle class people increases by 7-8% per year, so that purchasing power also increases. This is a very large target market, especially for Indonesia, which is predominantly Muslim. More than that, public awareness to consume halal food also increased.

Unfortunately, until now, access to businesses in Indonesia, especially MSMEs, to the international market is still small. Regarding this, LPPOM MUI has achieved UAE 2055: 2-2016 standards from the Emirates Authority for Standardization and Metrology (ESMA) so that MUI halal certificates can be accepted by the United Arab Emirates. Another thing that is also needed in this case is to multiply research on market movements, segmentation and market tastes.

Other aspects are technology and information. Although both of them are developing rapidly lately, they are not accompanied by optimal use of technology. Therefore, businesses need to be educated about the optimal use of e-commerce and media. Cooperation with other sectors is also needed to promote co-branding, especially with the halal tourism sector and the media and recreation.

In terms of technology and information, LPPOM MUI has used Cerol-SS23000 Online Halal Certification which has now been renewed to Cerol v.3.0. According to the Deputy Director of LPPOM MUI, Ir. Sumunar Jati, this development is in response to the challenges of the industrial era 4.0, where this application is expected to further improve the effectiveness and efficiency of work.

“In Halal Online Certification, Cerol-SS23000 v.3.0 has many advantages, including a more user-friendly appearance and an increased level of security. In this application too, lighter and faster and new features that make it easier for users, “continued Sumunar Jati.

(Read also: Halal Certification Online, Better with the Cerol-SS23000 Application)

Related to financing, in fact Indonesia currently has many alternative financing platforms and SME-friendly financing schemes (KUR, LPEI, Ventura). Opportunities for collaboration with Islamic banking and financial institutions are also wide open. Unfortunately, many of the financial institutions still need tangible guarantees, such as diplomas, certificates, and especially business plans, most of which cannot be fulfilled by business actors. 

What is equally important, in the success of the food and beverage industry; is research and research, the need to strengthen research, collaboration with food research agencies, universities, and companies to increase research on the halal food testing.

Until now, Indonesia is still a destination market for halal products from abroad. The development of Indonesia’s halal industry is considered stagnant. However, if Indonesia is able to optimize opportunities and respond to existing challenges, it is likely that Indonesia will become the center of the halal industry in the world. (YN)

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