Monday, 04 October 2021 07:52

Indonesia Has Halal Industrial Estates, Here are the Locations

Islamic economics and finance will become a new source of national economic growth. The government itself has compiled the Islamic Economic Masterplan 2019-2024 as a strategy to realize Indonesia as a world producer of halal products. In line with that, the Ministry of Industry together with the Halal Product Guarantee Agency and the Indonesian Ulema Council are trying to realize the strengthening of the halal value chain through the establishment of a Halal Industrial Estate (KIH). Currently, there are three KIHs, namely Modern Halal Valley, Halal Industrial Park Sidoarjo, and Bintan Inti Halal Hub. "The Ministry of Industry continues to strive to establish KIH and Halal Hubs in the regions in order to form a strong and equitable halal industry ecosystem throughout Indonesia," said Industry Minister Agus Gumiwang Kartasasmita in his official statement, Friday (1/10/2021). He said the development of the Halal Industrial Estate in Indonesia could realize the potential for the development of the halal industry which is quite large. The reason is, with a 1.8 billion Muslim population in the world, there is a potential for spending on halal products that reaches US$ 2.2 trillion. Indonesia itself has the largest Muslim population in the world, amounting to 222 million people.


"This level of consumption is predicted to increase by 6.2% in 2018-2024, or increase to US$ 3.2 trillion in 2024," he explained. So far, the trade in halal products between countries that are members of the Organization of Islamic Cooperation (OIC) has reached US$ 254 billion, which can boost Gross Domestic Product (GDP) by 1-3%. On the investment side, there are three main sectors that contribute to the development of the halal industry, namely sharia financial services at 42%, sharia lifestyle at 4%, and the largest is from halal products at 54%. Domestically, there are two halal manufacturing industries that performed brilliantly in 2020, including halal food ingredients and Muslim clothing. With the increasingly rapid competition in the halal industry, efforts are needed to attract investors to develop the halal industry in the country. Currently, the government is working on incentive plans, especially for halal industry players who are export-oriented and produce imported substitute goods. The incentives can be in the form of fiscal determination and relaxation of Sales Tax (VAT) for the sale of plots in KIH.


Furthermore, the Ministry of Industry encourages the development of a halal logistics business which is a support for the halal industry. The existence of segregation with non-halal products in logistics can guarantee the consistency of halal products. "We are also strengthening small and medium-sized industries (IKM) through KIH. Namely by integrating IKM in the supply chain for KIH, export facilitation and halal product certification, as well as through the e-Smart IKM program and the development of IKM centers that have been running," he explained. Then, in order to accelerate the provision of facilities for business actors in the field of halal products, both industrial and industrial estates, the Ministry of Industry will revise Minister of Industry Regulation Number 17 of 2020 concerning Procedures for Obtaining Certificates in the Context of Establishing Halal Industrial Estates, by including a facility clause.
He emphasized that the development of KIH requires synergy between ministries/agencies and regional agencies. This is to accelerate the availability of complete and integrated facilities and infrastructure, so as to increase investment interest in KIH. "This is in line with the mandate of the Vice President so that related parties can synergize in accelerating the filling and operation of KIH so that they can provide economic benefits for the community and nationally," he said.


Source: https://finance.detik.com/industri/d-5748958/ri-punya-kawasan-industri-halal-ini-lokasinya

 

 

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