Indonesia is aggressively pursuing its ambition to become a global leader in the halal industry, setting the stage for a potential shift in the balance of power currently held by Malaysia, particularly in the lucrative cosmetics sector. With a strategic focus on strengthening its halal ecosystem, Indonesia is leveraging its significant export transactions and aiming to enhance its development in key sectors like pharmaceuticals and cosmetics.
Indonesia’s Halal Ambitions
The Indonesian Ministry of Industry has set a target to become the world’s leading producer of halal products. This ambition is supported by substantial export transactions, which reached $64.11 billion in 2024. Deputy Minister Faisol Riza has emphasized the critical need to fortify the halal industry ecosystem, particularly during events like the Halal Indo 2025 expo launch in Jakarta. Although Indonesia’s global Islamic economy ranking has improved, further advancements are deemed necessary, especially in the pharmaceutical and cosmetic domains.
Halal Indo 2025 Expo
To propel its branding and production capabilities, the Ministry is organizing the Halal Indonesia International Industry Expo (Halal Indo) 2025 in Tangerang. This event aims to showcase Indonesia’s commitment to expanding its halal industry footprint and attracting international collaborations.
Global Halal Market Growth
Meanwhile, other nations are also recognizing the growing potential of the halal market. Somalia’s Ambassador to Kenya, Jabril Ibrahim Abdulle, recently attended the Sharia Compliance & Halal Business Expo 2025 in Nairobi. He underscored the expo’s role in promoting Islamic finance, ethical commerce, and cross-border collaboration, which can foster financial inclusion and sustainable development across East Africa. The global halal market is projected to reach a staggering USD 5.91 trillion by 2033, encompassing diverse sectors such as finance, cosmetics, tourism, fashion, and pharmaceuticals.
Vietnamese Businesses Align with Halal Standards
Vietnamese businesses are also increasingly aligning with Halal standards to facilitate exports to Indonesia. The Halal certification process involves stringent documentation reviews, on-site assessments, and adherence to specific standards. With mandatory Halal labeling expected by October 17, 2026, businesses are preparing to meet these requirements to tap into the burgeoning market. The Consul General of Indonesia in HCMC highlighted the immense potential for Halal products, projecting a global market of $10 trillion by 2030, which extends beyond food and beverages to include cosmetics, pharmaceuticals, fashion, tourism, and financial services.
Conclusion
Indonesia’s strategic initiatives and the broader global interest in the halal market indicate a dynamic and competitive landscape. As Indonesia strengthens its halal industry, particularly in the cosmetic sector, it poses a significant challenge to Malaysia’s established dominance. The focus on certification, branding, and international collaboration will be crucial in determining the future leader in the halal cosmetics market.