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Indonesia’s Muslim fashion industry ranks third globally

Indonesia’s Muslim fashion industry ranks third in the world, referring to data from the 2020-2021 State of the Global Islamic Economy Report, indicating the development of the halal industry in the country has been growing in the last two years and has contributed significantly to the national economy. (Indonesia Window)

Jakarta (Indonesia Window) – Indonesia’s Muslim fashion industry ranks third in the world, referring to data from the 2020-2021 State of the Global Islamic Economy Report, indicating the development of the halal industry in the country has been growing in the last two years and has contributed significantly to the national economy.

“In the halal pharmaceutical and cosmetics sector, we have gone up by 19 ranks to the 6th position in the world. Meanwhile, in the modest Muslim fashion sector, Indonesia is now ranked 3rd in the world,” the Industry Ministry’s Secretary General Dody Widodo said in a statement in Jakarta on Monday (Dec. 20).

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In addition, Indonesia is currently ranked fourth in the food sector (halal food), up by eight places compared to the previous position.

Dody said the realization of investment in the halal industry in Indonesia was the highest in the world. Throughout 2018-2021, as many as 80 transactions were recorded in the form of M&A (merger and acquisition), Private Equity (PE), and Venture Capital (VC) related to the halal industry.

“These transactions are spread across every sector, with most of them recorded in the halal food and sharia finance sectors,” he said, adding that the Industry Ministry would accelerate the development of the national halal industry so that it could transform from a top consumer market to a top halal exporter.

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Several policy initiatives in developing the halal industry in the country are accelerating the halal certification process for industry, especially for the Small and Medium Industry (IKM) sector.

The ministry has also established a Halal Inspection Agency (LPH), as well as strengthened human resource capacity through halal auditor trainings.

“With experience as the leading sector in the application of the Indonesian National Standard (SNI) industry, the Industry Ministry can play a role and the Halal Assurance System (SJH) in the future,” Dody said.

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In addition, the ministry also continues to encourage the establishment of a halal industrial area as stipulated in the Industry Ministerial Regulation Number 17 of 2020 concerning Procedures to Obtain a Certificate for the Establishment of a Halal Industrial Estate.

“The Industry Ministry issues a Certificate of Halal Industrial Estate for Halal Modern Valley which is managed by PT. Modern Industrial Estate in Serang city, Banten province, for the Sidoarjo Halal Industrial Park which is managed by PT. Makmur Berkah Amanda in Sidoarjo city in East Java province, as well as for Bintan Inti Halal Hub which is managed by PT. Bintan Inti Industrial Estate in Bintan Island, Riau Islands province,” he said.

The Industry Ministry has also organized the Indonesia Halal Industry Awards (IHYA) 2021. This activity is a form of the government’s appreciation for industry activists, academics and parties who have played active roles in advancing the development of the halal industry in Indonesia.

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“Ihya means to revive in Arabic. With this meaning, there is a hope that this award event can contribute to efforts to revive, awaken, and strengthen the sharia economic ecosystem in general and the halal industry in particular,” Dody said.

Reporting by Indonesia Window

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