The market for halal products is very wide open as it covers people all over the world, with Indonesia ranked as the fourth largest sharia economy after Malaysia, Saudi Arabia and the United Arab Emirates (UAE).

Jakarta (Indonesia Window) – The market for halal products is very wide open as it  covers people all over the world, while its development in Indonesia still needs more cooperation among relevant parties, the Director of the Sharia Economics and Finance Department of Bank Indonesia (the central bank), Wahyu Purnama, said.

Wahyu Purnama made the remark at a talk show in Jakarta on Tuesday ahead of the Indonesia Sharia Economic Festival (ISEF) and the Halal Expo Indonesia (HEI) 2023, which will take place at the Jakarta Convention Center (JCC) on October 25-29.

Halal is an Islamic term meaning allowed to be consumed or used under the law of Islam.

“The development of the sharia financial economy in Indonesia is very large, as the country is the one with the largest number of Muslims in the world. Such development can also be seen in countries with Muslim minority populations," he noted.

Wahyu explained that countries such as Japan, Britain and South Korea are currently increasingly paying attention to the halal factor of their products, even ensuring that their export goods are halal certified.

“This is because halal products are actually not only needed by the Muslim community, but also the whole world. However, the coverage of the halal market is still limited, different from that of the non-halal market," he added.

The Global Islamic Economy Indicator 2022 data shows that Indonesia is ranked fourth in the largest sharia economy after Malaysia, Saudi Arabia and the United Arab Emirates (UAE).

Based on categories, Indonesia is in the second place for halal food, third for Muslim fashion, sixth for sharia finance, and ninth for halal pharmaceuticals and cosmetics.

According to Wahyu, Islamic sharia has inclusive characteristics, so that its use and application are not limited by one particular religion and belief.

However, he continued, sharia economic literacy efforts are always needed to build public understanding so they can apply it in daily life, and sharia is expected to become a culture in society.

Wahyu emphasized that the Indonesia Sharia Economic Festival (ISEF), which collaborates with the Halal Expo Indonesia (HEI) 2023, is the culmination of the sharia financial economic campaign in the country to realize sharia literacy to increase to 30 percent in 2023, 40 percent in 2024, and 50 percent in 2025.

The 10th ISEF in 2023 will be held in Jakarta on October 25-29, with 793 exhibitors from Indonesia and 20 fellow countries.

The ISEF 2023 and the HEI 2023 also collaborate with the Indonesian Muslim Entrepreneurs Community (locally known as KPMI) as a strategic partner, which will facilitate a business matching program during the upcoming event.

Reporting by Indonesia Window