Indonesia must look to neighbours for halal export inspiration

Indonesia’s halal industry is looking to follow the footsteps of neighbours Malaysia and Thailand to become one of the world’s major halal product suppliers, as it looks to seize the vast opportunity brought about by the ever increasing global halal market. “As we know, the global halal trade is growing fast, especially halal product exports from the Asean region to middle east and OIC (Organisation of Islamic Cooperation) countries, as the biggest consumers of halal products,” Mohamad Bawazeer, chairman of the Middle East and Organization of Islamic Conference (OIC) at the Indonesian Chamber of Commerce and Industry, told Asean Today. “And of course this will cause a trade competition between the Asean countries in taking advantage of this opportunity,” he added. This opportunity, is no small matter. It is estimated that Muslims account for 27 per cent of the world population, or 1.7 billion people, and is expected to surge to 2.8 billion in 2050. The current halal product supply is only enough to meet more or less 20 percent of the world halal demand. Furthermore, the whole of the Muslim population currently consumes an estimated US$265 billion worth of halal foods a year. What is interesting is that the spending power of Muslims is increasing. According to the State of the Global Islamic Economy 2014-2015 report by Thomson Reuters, the global expenditure of Muslim consumers on food and lifestyle grew 9.5 percent from the previous year’s estimate to US$2 trillion in 2013 and is expected to reach US$3.7 trillion by 2019. Simply put, this is a growing yet gravely undersupplied market, making it a mouth-watering prospect for many the world’s halal producers. Asean countries, both the Muslim and non-Muslim majorities, have jumped into the bandwagon. While Malaysia and Thailand continue to establish themselves as two of the world’s main halal kitchens, other countries in the region have also started to pull up their sleeves. Singapore has been building its halal brand through product development

Update Date : 09/06/2016