Halal Value Chain

Summary

The video highlights the growing demand for halal food and fashion in Indonesia, driven by global challenges and the need for local market revival. It discusses how the halal industry, part of the broader Islamic economy, has expanded, especially in sectors like finance and food. Bank Indonesia supports this growth through a comprehensive approach, focusing on halal certification, business ecosystem development, and product innovation across multiple sectors such as food, fashion, tourism, and pharmaceuticals. The goal is to enhance Indonesia’s global competitiveness, economic productivity, and national economic recovery.

Takeaways

• 😀 The demand and supply for halal food and Muslim fashion are increasing globally, especially following the pandemic.
• 😀 The pandemic has forced the world to innovate and boost local markets while activating domestic production to help economic recovery.
• 😀 The halal product industry is a key part of the Sharia economy, which has been developed by the government over the last three decades.
• 😀 Initially, Sharia economy touched the service sector, particularly financial services, and has now expanded to include halal products.
• 😀 Bank Indonesia supports the growth of the halal industry through a comprehensive approach, including the development of a halal ecosystem.
• 😀 Halal Value Chain (Hal Felicis) or Halal Value Chain Strategy is the main strategy for economic recovery, involving various halal industry sectors.
• 😀 According to the Statistics Indonesia (BPS), in 2019, Indonesian fashion products had a 1.9% share of the global market.
• 😀 Halal-certified food and beverages are identified by halal labels on the packaging or at eating establishments.
• 😀 Bank Indonesia's Governor, Perry Warjiyo, outlined four key points to develop the halal industry in Indonesia: certification, business ecosystem, product development, and end-to-end integration.
• 😀 Halal certification is important to make Indonesian products more globally recognized and accessible in international markets.
• 😀 The development of the halal ecosystem should focus on integrating various business units to support economic growth and improve the welfare of the people.

Q & A

What is the current trend in the halal industry in Indonesia?

The halal industry, including food, drinks, and Muslim fashion, has seen increasing demand due to global challenges. This shift has prompted local markets to become more creative and activate domestic production to boost national economic recovery.

How has the pandemic influenced the development of Indonesia's halal industry?

The pandemic has forced the world to become more innovative and focus on revitalizing local markets. This includes advancing domestic production and expanding the halal industry as a key driver of economic recovery.

What role does the Indonesian government play in the halal industry?

The Indonesian government has actively developed the halal industry over the past three decades, integrating it into the broader framework of the Islamic economy. One key initiative is through the creation of a comprehensive halal ecosystem.

What is the significance of the halal value chain mentioned in the script?

The halal value chain, or 'halal felicis,' is a strategy designed to integrate various halal sectors to stimulate economic recovery. It involves the entire process from production to marketing, with the goal of promoting Indonesian products globally.

How has Indonesia's market share in the global fashion industry performed?

In 2019, Indonesia's fashion industry captured approximately 1.9% of the global market, demonstrating the growth and international presence of Indonesian halal fashion.

What is the role of halal certification in Indonesia's economy?

Halal certification is essential for ensuring the global competitiveness of Indonesian products. It signals that products meet halal standards, and it is a critical component in expanding the market for Indonesian food, drinks, and fashion.

What does the Governor of Bank Indonesia suggest as key actions for the halal industry?

The Governor of Bank Indonesia, Perry Warjiyo, emphasizes four key points: first, halal certification to make Indonesian products more globally recognized; second, developing a comprehensive ecosystem for businesses; third, expanding halal products in various sectors such as food, fashion, and cosmetics; and fourth, focusing on end-to-end processes, from production to marketing.

What are the expected benefits of the halal value chain for Indonesia?

The halal value chain is expected to improve the competitiveness, productivity, and economic empowerment of Indonesia's economy. By strengthening the integration of halal industries, it aims to support national economic recovery.

Which sectors are highlighted as part of the halal value chain?

The halal value chain includes various sectors such as food, beverages, fashion, tourism, cosmetics, pharmaceuticals, and renewable energy, all of which are crucial for the development of Indonesia's halal economy.

What role does Bank Indonesia play in supporting the halal industry?

Bank Indonesia supports the halal industry by developing a comprehensive approach that includes promoting halal certification, building business ecosystems, and facilitating the growth of various halal sectors to support Indonesia's national economic recovery.