The Greatness of Indonesian Halal Products: 87% Contribution to the Trade Balance

Indonesia, the country with the largest Muslim population in the world, has succeeded in significantly exporting halal products.

We have made a positive contribution to the national trade balance of 87% or USD 53.43 billion for the January-October 2023 period. Reporting from kneks.go.id, based on these figures, Indonesia's halal product exports were recorded at USD 42.33 billion and imports at USD 11.10 billion. Of course, this has an impact on the trade balance surplus which is quite large.

List of Leading Sectors for Increasing Halal Product Exports

From this value, several mainstay sectors make the national trade balance surplus export figures soar. Among them are the Processed Food sector (USD 34.74 billion), Cosmetics (USD 362.49 million), Pharmacy (USD 546.03 million), and Muslim Clothing (USD 6.68 billion).

There are also several main export destination countries for Indonesian halal products, including China (17.65%), the United States (16.64%), India (9.89%), Pakistan (4.72%), and Malaysia (4.72%). This figure is the percentage of the destination country's export contribution to the total export value of Indonesian halal products.

Halal Product Export Growth Factors

The increasing trade balance surplus is of course in line with growth factors, namely:

1. Increase Global Consumer Awareness

The global community increasingly understands the importance of consuming halal products. With strong halal certification, it will gain the trust of international consumers.

2. Government support

The Indonesian government actively supports the halal industry through policies that support halal certification, improving product quality, and export promotion.

3. Product Innovation

Indonesian companies continue to innovate in terms of development, both in terms of taste, packaging, and other added value, so that they can compete in the international market.

4. International Partnership

Collaboration with other countries in terms of halal certification and promotion opens the door to Indonesian exports to the global market.

Embrace the Challenges Ahead

The next step is to continue to maintain quality to make efforts to reach new markets so that Indonesia can ensure sustainable growth and greater positive impact. To face this challenge, we can do the following:

1. Maintain quality standards to maintain consumer trust so that high halal standards are maintained.

2. New market expansion to identify and access new markets, including through international trade agreements.

3. Strengthening cooperation with trading partner countries, both in terms of certification and product promotion, can help overcome trade barriers.

By maintaining quality and continuing to strive to reach new markets, we can be sure that Indonesia's sustainable growth will be increasingly positive and greater.

Are you an entrepreneur who also wants to contribute to the export of halal products? First, make sure your product is halal certified, but if not, contact the IDN Halal team to get help with obtaining a halal certificate.

Also read: Selangor State Royal Meeting: Bringing Fresh Air to the Halal Ecosystem.