Can Indonesia Become the World's Halal Hub by 2029? An Interview with Prof. Dr. Rusyaida
Indonesia has set an ambitious target of becoming a global halal hub by 2029, capitalising on its status as the world's largest Muslim-majority nation and its rapidly expanding halal economy. Yet turning that ambition into reality requires more than political commitment—it demands a robust regulatory framework, integrated industries, and collaboration across the public and private sectors.
According to Prof. Rusyaida, the term halal, derived from Arabic, means "permissible" or "lawful" under Islamic law. In Indonesia, however, the concept has evolved into a national brand that is increasingly recognised in sectors such as halal food, halal tourism and halal consumer products.
She pointed out that the government's commitment is clearly reflected in Law Number 33 of 2014 on Halal Product Assurance, which defines halal products as those certified in accordance with Islamic law. The legislation also places responsibility for administering the halal assurance system on the government through the Halal Product Assurance Organising Agency (BPJPH), working in collaboration with relevant ministries, Halal Inspection Bodies (LPH) and the Indonesian Ulema Council (MUI).
"This legal framework provides certainty for both producers and consumers. It also strengthens Indonesia's credibility in the international halal market," Prof. Rusyaida noted.
| Twin Lakes Splendour. A scenic view of Lake Diateh-also known as the Upper Lake-one of the natural attractions in Solok, West Sumatera, Indones. (Source: Kiwigraphy Studio) |
One of the government's key strategies, she said, is the development of halal industrial estates. These are designed to ensure that every stage of production—from sourcing raw materials to manufacturing, storage and distribution—complies with Islamic standards.
"A halal industry cannot rely solely on certification of the final product. The entire supply chain must be halal-compliant. This is what we call the halal value chain," she explained.
The initiative is being developed in cooperation with the Indonesian Chamber of Commerce and Industry (Kadin) and the Indonesian Ulema Council (MUI), with priority sectors including food and beverages, cosmetics, pharmaceuticals and modest fashion.
Prof. Rusyaida stressed that supply chain management remains one of the most critical components in achieving Indonesia's ambition.
"Halal compliance begins with the selection of suppliers, continues through the production process, warehousing and logistics, and ends with distribution to consumers. Every stage must prevent contamination by non-halal elements," she said.
Despite Indonesia's considerable advantages, she acknowledged that several challenges remain. Harmonising regulations, improving the capacity of halal certification institutions, increasing the competitiveness of local industries and strengthening public awareness all require sustained attention. Equally important, she added, is stronger support from Islamic financial institutions.
"The halal ecosystem cannot flourish without adequate financing. Islamic financial institutions play a strategic role in supporting investment and expanding halal businesses, especially small and medium-sized enterprises," she said.
Looking ahead, Prof. Rusyaida believes Indonesia's aspiration to become the world's halal hub by 2029 is achievable, but only if all stakeholders move in the same direction.
"The government cannot achieve this objective alone. Success depends on collaboration between regulators, businesses, scholars, certification bodies, financial institutions and consumers. If these elements work together, Indonesia has every opportunity to become a global centre of the halal economy," she concluded. [IRWANDI]
Dr. Irwandi
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