A number of Asian countries are showing seriousness in developing the halal economy as a new post-pandemic growth engine. Thailand, South Korea, Japan and Vietnam are moving forward with their respective strategies, while Indonesia has not moved from its position as the largest consumer.
Thailand is targeting revenues of up to IDR2.4 trillion per year from the halal sector with a solid roadmap towards the ASEAN Halal Hub 2027. The local government encourages “Muslim-Friendly Hotel” certification so that non-Muslim industry players can play an active role, and works on five strategic subsectors: food, cosmetics, pharmaceuticals, modest fashion, and halal tourism.
On the East side of Asia, South Korea and Japan are adapting local products to halal versions, such as halal wagyu, ramen, halal cosmetics, and modest fashion. Both countries have also started exporting halal products to the global market, despite the majority of the population not being Muslim. This effort is escorted through trend research, cross-cultural promotion, and the provision of worship facilities at tourist sites.
Vietnam is also strengthening its steps by building a regional halal certification ecosystem with Indonesia and Malaysia. Their export focus includes agricultural products, seafood, and processed milk. Companies such as Vinamilk have penetrated the Middle East market, demonstrating the adaptability of Vietnam's halal industry.
Meanwhile, Indonesia is still lagging behind in halal production and export capacity. Data in the State of the Global Islamic Economy Report (SGIE) 2024/2025 shows that Indonesia is ranked 3rd in the world in global Islamic economy indicators. Specifically, Indonesia ranks first in modest fashion and second in halal cosmetics and Muslim-friendly tourism. However, in the halal food sector, Indonesia dropped to 4th place and is still ranked 6th in Islamic finance.
In terms of halal investment, Indonesia actually recorded a record high with 40 transactions worth USD 1.6 billion by 2023. This achievement shows that investors see Indonesia's great potential in the halal sector, but it has not been matched by the acceleration of the real industry and harmonization of export regulations.
The halal economy is seen as not just a trend, but the future of a global economy that is inclusive, sustainable and based on ethical values. IAEI encourages collaboration between government, industry, academia and society so that Indonesia can transform from a consumer to a major world halal producer.
