Prof. Khaswar Syamsu: The Indonesian Halal Product Market is Dominated by Foreigners

Indonesia's opportunity to become an exporter of world halal products is very large. Indonesia is a country with the largest Muslim population in the world. This large Muslim population is a potential consumer of halal products. And it should also be a prospective producer if it can take advantage of the opportunities that are wide open in plain sight. This was conveyed by the Head of the Halal Science Center, Institute of Research and Community Empowerment(LPPM) of IPB University, Prof. Khaswar Syamsu.

According to this IPB University lecturer from the Department of Agroindustrial Technology (TIN), the most potential sectors for Indonesian halal products are food, beverages, Muslimah clothing, cosmetics, and halal tourism.

"The food, beverage and Muslimah clothing sectors produced by MSMEs (Micro, Small and Medium Enterprises) are likely to be relied upon to be exported to Muslim countries. However, this potential sector has not been fully utilized. Law No. 33 of 2014 already requires halal certification, but there are still many food, beverage, and cosmetic products that have not been certified halal," said the Professor of the Faculty of Agricultural Technology, IPB University.

He added that based on 2018/2019 Global Islamic Economy data, the countries with the highest consumption and expenditure for halal products after Indonesia were Turkey, Pakistan, Bangladesh, Iran, Saudi Arabia, Nigeria, Russia and India. In addition, the United Arab Emirates and Malaysia can also be export destinations.

"In the world, Indonesia is the number one consumer of halal products. But unfortunately, we are in the number 10 position for the ranking of producers of halal products. Countries that export halal products are actually controlled by countries with a non-Muslim majority population. They are Brazil, Australia, India, France, China, Sudan, and the Netherlands. Brazil, Australia, and India are the main exporters of halal meat to Indonesia,” explained the innovator of IPB University Vegetable Cheese .

Therefore, according to him, the domestic industry must also be competitive in the context of price and quality. In terms of price, Indonesia can be more competitive because of its abundant natural resources and relatively cheaper human resources as labor.

"However, in terms of quality, it needs to be improved to be competitive in the world," he added.

About the halal certification process, the biofilm innovator of IPB University is realizes that the procedure is more extensive and longer than before Law No. 33 of 2014. The addition of the existing link, according to him, has the consequence of increasing the certification process time. There may also be additional costs for adding these links.

"Adding costs for halal certification will certainly burden the industry. For medium and large industries, it may not be too much of a problem because they have budgeted for promotion and marketing costs. But for MSMEs that do not have a budget for promotion and marketing, of course the additional costs will be counterproductive for the development of halal production. Therefore, I agree that halal product development credit is supported by a fair sharia financial system and does not burden or strangle the borrower," he said.

Prof. Khaswar Syamsu sees a halal production ecosystem that needs to be supported by responsible human resource development through education and training. In addition, there is a need for research that can substitute imported materials (which are not halal) and research that can improve the efficiency and competitiveness of the halal industry.

"This effort aims to make MSMEs able to offer halal products with more competitive prices and quality," he concluded. (dh/Zul)


Published Date : 11-Jun-2021

Resource Person : Prof Khaswar Syamsu

Keyword : Prof. Khaswar Syamsu, IPB University, Indonesian Halal Product Industry