Indonesia's halal market reaches US$326 billion in first half of 2026

Jakarta (ANTARA) - Industry Minister Agus Gumiwang Kartasasmita highlighted Indonesia's potential in the halal industry, supported by its large domestic market and strong industrial base, with Muslim household consumption projected to reach Rp5,974.9 trillion (US$326 billion) in the first half of 2026.

"We possess two key strengths: a large domestic market and a strong, well-developed industrial base," he said at the Industrial Festival x Halal Indo 2026 event in Tangerang, Banten, on Thursday.

According to Kartasasmita, the substantial consumer base is a key asset for Indonesia to develop its halal industry while strengthening its position in global markets.

Beyond its large domestic market, Indonesia's halal industry has also expanded into global markets. Exports of Indonesian halal industrial products are valued at around US$35.72 billion, compared with imports of approximately US$17.47 billion.

In addition, the halal industry contributes Rp1,102 trillion (US$60.2 billion) to the Non-Oil and Gas Manufacturing Industry (IPNM), representing around 50.55 percent of the sector's total.

Kartasasmita said the figures demonstrated the significant potential of the halal industry to drive economic growth and enhance the competitiveness of Indonesia's industrial sector.

"It is not only Indonesia that seeks to capitalize on this potential. Other countries are doing the same. That is why I say this is an economic war we must win, a trade war we must win," he asserted.

At the same time, he emphasized that the development of the halal industry must be accompanied by preparedness for the expanded implementation of mandatory halal certification.

He noted that mandatory halal certification has been implemented since 2024 for specific products produced by medium and large enterprises.

Starting October 18, 2026, the next phase will expand the scope to additional products and business entities.

The minister said the expansion presents several challenges, beginning with the readiness of raw materials and supply chains. This includes ensuring that raw materials, additives, and processing aids meet halal requirements.

Furthermore, the integrity of production processes and industrial facilities must be maintained at every stage, from production and storage to packaging and distribution, including when materials, suppliers, or production processes change.

Another challenge is the capacity of the halal certification ecosystem. Expanding mandatory halal certification coverage will increase demand for certification, inspection, and testing services.

As a result, Halal Inspection Agencies (LPH), auditors, laboratories, and qualified personnel will need to continuously strengthen their capacity to meet growing demand.

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Translator: Ahmad Muzdaffar, Resinta Sulistiyandari
Editor: M Razi Rahman
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