Indonesia is the best performing country in the modest fashion sector in the State of the Global Islamic Economy (SGIE) Report 2024/2025 released by DinarStandard. This achievement puts Indonesia at number one in the world, ahead of countries such as Malaysia, Italy, Turkey and Singapore.
This success is the result of an integrated national strategy, including the implementation of the Indonesia Global Halal Fashion (IGHF) program initiated by the Halal Product Guarantee Agency (BPJPH). This program involves collaboration between the government, textile industry players, designers, and halal fabric manufacturers, as well as active promotion in five countries: Indonesia, Malaysia, London, Milan and Paris throughout 2024.
“This achievement is a starting point to jump higher and play Indonesia's leading role in shaping the future of the world's halal economy that is inclusive, innovative and civilized,” said BPJPH Head Ahmad Haikal Hasan.
Strengthening the modest fashion ecosystem is carried out from the upstream sector, from access to halal-certified raw materials, production processes, to branding and global promotion. This step is also prepared to welcome the halal certification obligation for used goods, including fashion products, which will be enforced from October 2026.
Overall, Indonesia maintained its third position in the global SGIE index, but recorded significant surges in the modest fashion, Muslim-friendly tourism (ranked 2nd), and halal cosmetics and pharmaceuticals sectors (ranked 2nd).
This achievement strengthens Indonesia's position as the center of the world's halal industry, while demonstrating that the Islamic economy can grow through a creative, collaborative, and value-based approach. The government and industry players are expected to continue to strengthen synergies so that Indonesia not only becomes a regional leader, but also a major actor in the mainstream of the global halal economy.
