Jakarta: Bank Indonesia (BI) Governor Perry Warjiyo has proposed five keys to stimulate the halal industry in Indonesia.
The five keys are Competitiveness, Certification, Coordination, Campaign and Cooperation.
That was the key takeaway of the INHALIFE conference entitled "Creating Halal Champions, Accessing Global Halal Markets: From Potential to Reality" as part of ISEF 2019 activities in Jakarta on Thursday, November 14, 2019.
According to the BI Governor, implementation of the 5 Cs is key not only to unlocking Indonesia’s potential as a market but also as a production hub of the global halal industry.
Furthermore, the BI leader explained that Competitiveness could be achieved by mapping potential sectors ripe for development, such as food and beverages, fashion, tourism and the digital economy. Meanwhile, Certification is required to expand market access. Coordination, policy synergy and programs between the government, the central bank and other relevant authorities are required in order to ensure the Islamic economy can be realised as a new source of economic growth. Universal Campaigns are required to introduce the public to the halal lifestyle, for Muslims and non-Muslims alike. And finally, Cooperation between stakeholders in the national and international halal industries is a prerequisite to grow and develop the global halal industry.
The 5 Cs answer the challenges of global halal industry development that may be exploited by Indonesia, namely a large potential global halal market totalling 1.84 billion Muslims, accounting for 24.4% of the global population, potential sharia-compliant business sector development and adoption of the halal lifestyle by Muslims and non-Muslims.
According to the Global Islamic Economy Report, by the end of 2023, the halal food industry will be worth USD1.8 trillion, with halal tourism worth USD274 billion and the halal fashion industry worth USD361 billion.