Jakarta (Indonesia Window) – Indonesia is a potential halal product market with more than 87.18 percent of Muslims out of a total population of 232.5 million, according to the 2018-2019 Global Islamic Economic Report.
The 2019-2024 Indonesian Sharia Economic Master Plan which quotes the report noted that Indonesia is among the top 10 global consumers in each sub-sector in the halal industry.
Indonesia ranks first in the food expenditures and fifth in the halal travel expenses in the world.
As for the amount of expenditures on Muslim fashion, Indonesia ranks third in the world.
The country ranks fifth in the expenditures on Muslim media, and sixth in the spending on halal medication.
Despite having a large Muslim market, the Global Islamic Economic Index (GIEI) shows that Indonesia is among the top 10 in the world only in the halal tourism industry and Muslim fashion.
Based on the GIEI ranking, Indonesia has a tendency to stagnate in the 10th rank from 2014 to 2018.
Even in 2017, Indonesia’s GIEI rank dropped by one rank in 11th place.
This stagnation is due to the development of six halal industry sectors, namely halal food, Islamic finance, halal travel, Muslim fashion, halal media and recreation, as well as halal medicines and cosmetics. Those sectors are part of the index measurement which has not been consistent.
Indonesian halal food, halal media and recreation sectors have never consistently been in the top 10 of the GIEI since 2014-2018, and even their scores declined in 2018.
Meanwhile, although the Islamic financial sector is often in the top 10 in the world, its progress in the last five years is relatively stagnant in the ninth and tenth positions.
The halal travel sector enjoys a significant increase in rank as Indonesia reached the fourth position in 2017 and 2018. During the previous three years, Indonesia had not even penetrated the top 10.
In the Muslim fashion sector, Indonesia experienced a sharp increase and ranked second in 2018. The country had never been in the top 10 in the world since 2014.
However, the halal pharmaceutical and cosmetics sector did not show any improvement as Indonesia did not include in the top 10 in 2018. However, four years earlier, this biggest archipelagic country in the world ranked seventh and eighth.
Reporting by Indonesia Window