Wednesday, 15 May 2019 08:51

Indonesia Set to Become Main Producer in Global Halal Industry by 2024

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The National Development Planning Minister/Head of the National Development Planning Agency Bambang Brodjonegoro (center) in a press conference in Jakarta on Tuesday. The National Development Planning Minister/Head of the National Development Planning Agency Bambang Brodjonegoro (center) in a press conference in Jakarta on Tuesday. ANTARA

The Government has unveiled the Indonesian Islamic Economics Masterplan (MEKSI) 2019-2024, which recommended four strategic steps with the goal of Indonesia becoming a major producer in the global halal industry by 2024.

National Development Planning Minister / Head of National Development Planning Agency Bambang Brodjonegoro, said at a press conference here on Tuesday that Indonesia is currently among the top ten global consumers in the sharia industry.

This is ironic, because Indonesia, which, in fact, is a country with the largest Muslim population in the world, is still a consumer country. However, on the other hand, Indonesia is still struggling to become a producer of halal products.

With the existence of the MEKSI, Indonesia is expected to become a major producer within the global halal industry.

"With this master plan, we hope that Indonesia can become a major player and producer in the global halal industry by 2024," Bambang said.

For this reason, Bambang recommends four strategies, including strengthening the value chain of halal products, with a focus on sectors that are considered potential and highly competitive.

"Especially in potential sectors, such as food and beverages, tourism, fashion, media and recreation, as well as pharmaceuticals and cosmetics," he said.

Furthermore, it is necessary to strengthen the Islamic financial sector with a master plan that was outlined in the previous Indonesian Sharia Financial Architecture (MAKSI) Masterplan and refined into this master plan. Sharia economic development will be prioritized in the retail sector.

In addition, the strengthening of the Micro, Small and Medium Enterprises (MSME) sector is the main driver of the halal product value chain.

The fourth step includes strengthening the field of digital economics, especially trade (e-commerce, market place) and finance (financial technology), to encourage and accelerate the reaching of other strategies.

"Halal products and services will be added to 'e-commerce' (e-commerce). We will work with several 'e-commerce' platforms," he said.

Through this master plan, the government also encourages public awareness, increasing the quantity and quality of human resources, along with strengthening research and development capacity, fatwas, regulations and governance of the halal industry in Indonesia.

"We can change our position from being only consumers to becoming producers. Indonesia is very fortunate," he said.

Bambang continued, noting that the benefit will be reached when Indonesia becomes a producer in the halal industry and improves the current account deficit. So far, imports of halal products have also been the cause of the current account deficit.

"This can also improve the current account deficit. Most consumption is still consumed from abroad, so we need reinforcement on all sides, both from the supply chain and so on," he said. (ANTARA)

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