Indonesia has a large domestic halal market, but this potential needs to be converted into production, investment, and export strength to strengthen its position in the global halal value chain. This was conveyed by Dr. Titi Khairiah from the Indonesian Chamber of Commerce and Industry (Kadin) at the National Mudzakarah and Discussion Forum of the Expert Council of the Indonesian Islamic Economists Association (IAEI) in the VVIP Hall of the Istiqlal Mosque in Jakarta, Tuesday (September 29).
Titi stated that Indonesia's large Muslim population represents significant market capital. "We have an extraordinary population advantage. But the question is, will we only be consumers or are we capable of becoming major producers and exporters of halal products globally?" she said.
Titi also highlighted the role of Islamic finance as a lever for the halal industry. Based on the data she presented, total assets in Indonesian Islamic Finance have reached approximately IDR 3,100 trillion, with Islamic Banking assets reaching around IDR 1,070 trillion, and Islamic Capital Market assets reaching around IDR 1,800 trillion.
According to her, the growth of Islamic finance needs to be accompanied by stronger connections with the real sector, particularly the halal industry and MSMEs. Thus, Islamic financing not only increases the assets of the financial industry but also helps businesses increase production capacity and expand markets.
These opportunities are growing with the growth of the global halal market. Titi stated that the world's approximately 2.2 billion Muslims spend more than US$2.4 trillion across various sectors, from food and beverages, modest fashion, pharmaceuticals, cosmetics, Muslim-friendly travel, and the creative economy.
"We already have proof that Indonesia is capable of becoming a global player. Modest fashion is one example. Now the challenge is how we expand that success to other halal sectors," she said.
Titi also emphasized that competition in the global halal industry doesn't only come from Muslim-majority countries. Brazil, for example, is developing its halal industrial capacity and strengthening exports of halal poultry products. China is also increasingly developing its halal market and products and opening up opportunities for collaboration with Indonesian businesses.
Domestically, the implementation of mandatory halal certification, which will enter a crucial phase on October 18, 2026, also provides momentum to boost the capacity of MSMEs. Titi stated that Indonesia has approximately 64 million MSMEs, with approximately 60 percent of them being women.
To support this capacity building, the Indonesian Chamber of Commerce and Industry (Kadin) has developed the Kadin Halal Trainer program, which aims to help business actors understand the halal process and prepare to enter a wider market. In terms of trade and business diplomacy, Titi stated that the Indonesian Chamber of Commerce and Industry (Kadin) is also strengthening its involvement in the trade networks of the Organization of Islamic Cooperation (OIC) countries. Kadin is said to have served on the Board of Directors of the Islamic Chamber of Commerce and Development (ICCD), which represents the private sector from 27 OIC countries.
With a large Muslim population, tens of millions of MSMEs, the development of Islamic finance, a growing halal industry, and an international trade network, Titi believes that Indonesia's main challenge is orchestrating all these strengths into an interconnected ecosystem.
