JAKARTA: Deputy Minister of State-Owned Enterprises Pahala Nugraha Mansury has said that the potential for Indonesia’s halal product exports has reached around US$3.6 billion.
“We also support efforts to increase investment, and this can be seen from the potential for exports of Indonesian halal products to other countries of approximately US$3.6 billion,” he remarked at an online seminar on ‘Islamic Young Entrepreneurs’ in Jakarta on Thursday.
Based on the Indonesia Halal Market Report 2021, the growth in exports of halal products, entry of foreign direct investment or investment in Indonesia, as well as substitutions of some products are expected to encourage an increase in national GDP, specifically for halal products and services, he noted.
The value of halal products and services could reach US$5.1 billion, he said.
“So, the market is huge, it is just a matter of how we can use it together. Trade will become one of the key components of the total expenditure of the Muslim community, including halal food products, fashion, pharmaceuticals, and cosmetics,” he said.
A series of Sharia Young Entrepreneur Seminar activities can encourage halal products, as well as the expansion of Indonesian halal products to the Organization of Islamic Cooperation (OIC) and non-OIC countries, he added.
“Muslims can be part of producers that take advantage of the huge market. As a result, it can be a driving force for future economic development,” he said.
Earlier, Minister of State-Owned Enterprises (BUMN), Erick Thohir, opened the market for Indonesian halal products through the Sharia Economic Community (MES) in various countries, such as Russia, Morocco, Sudan, Singapore, South Korea, China, and Saudi Arabia.
Currently, he is trying to open the MES network in Pakistan, the United Arab Emirates, Thailand, and Brunei, especially through the Indonesian diaspora who live in these countries.
Collaboration between the sharia industry and the government, Islamic boarding schools, and Islamic students is a must at this time because the COVID-19 has had a significant impact on economic activities, Thohir said.
Therefore, Thohir, who is also the general chair of the MES Central Committee, said he believes that the economic balance must be maintained.
The phenomenon of digitalization, as part of the current development of digital technology, is a great opportunity for accelerating the growth of sharia economics and finance in Indonesia, Vice President Ma’ruf Amin said earlier.
“It (digitalization) is a great opportunity for accelerating sharia economic growth in Indonesia, and it can accelerate the market inflow of sharia financial institutions and businesses,” he noted.
The digitalization process, which is now growing quite rapidly, will enter the economic and Islamic finance ecosystem in Indonesia, he said.
Therefore, Amin urged the Indonesian Sharia Supervisory Board (DPS) and all stakeholders in the Islamic economy and finance sector to prepare the infrastructure to encourage progress in the sector.
“It is important for all stakeholders to prepare the infrastructure and its superstructure more thoroughly,” he added.