A recent study jointly released by Alibaba.com and the Malaysia External Trade Development Corporation (MATRADE) titled the “Alibaba.com 2023 Halal Industry Report” has revealed that Indonesia, with its 229 million Muslim population, holds the title of the largest consumer base for halal products in Southeast Asia.
Globally, Indonesia ranks as the seventh-largest market for halal products. The leading countries in the first to sixth positions are the United States (US), Pakistan, Bangladesh, Egypt, the United Kingdom, and Saudi Arabia. Meanwhile, France, Malaysia, and the United Arab Emirates (UAE) claim the eighth to tenth positions.
The global halal product market is valued at an astonishing US$ 2 trillion. Indonesia also stands out as one of the world’s major suppliers of halal products, thanks to its rich Islamic heritage and profound cultural understanding.
“Indonesia undeniably holds a competitive edge in the halal product market due to its large population, rigorous product standards, and a thriving community of entrepreneurs in this field,” remarked Roger Luo, Head of Southeast Asia at Alibaba.com, on September 18, 2023.
Roger emphasized that technological advancements have made online sales more accessible than ever. Consequently, Alibaba.com encourages Indonesian entrepreneurs to leverage the export opportunities available through digital platforms like Alibaba.com to expand into new markets.
Bank Indonesia (BI) predicts that Indonesia’s Halal Value Chain (HVC) sector, encompassing agriculture, halal food and beverages, Muslim fashion, and Muslim-friendly tourism, will grow between 4.5% to 5.3% in 2023.
The central bank estimates that the HVC sector could contribute over 25% to the country’s economy. The Ministry of Industry has also included the Empowerment of the Halal Industry agenda in the National Industrial Policy (KIN), established under Presidential Regulation No. 74 of 2022 for the National Industrial Policy for the years 2020-2024.
“As a business-to-business (B2B) marketplace tailored for SMEs, Alibaba.com is ready to assist Indonesian SME exporters with a comprehensive range of services,” Roger stated.
These comprehensive services encompass online store management, translation support, digital marketing, and platform analytics, all aimed at empowering Indonesian businesses to thrive in the global halal market.