Halal Economy Accounts for Nearly a Quarter of Indonesia’s GDP
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- Indonesia’s halal sector contributed 24.8 percent to GDP in late 2025, driven by strong export growth and rising global demand.
- Halal exports surged while imports declined, boosting Indonesia’s trade surplus and strengthening its global competitiveness.
- Despite strong performance, reliance on imported raw materials remains a key challenge for long-term industry resilience.
Jakarta – Indonesia’s halal industry continues to demonstrate its strategic role in supporting national economic growth. Alongside improved export performance, the country’s Halal Value Chain (HVC) has made a significant contribution to gross domestic product (GDP).
Data from the National Committee for Sharia Economy and Finance (KNEKS) show that leading halal sectors accounted for 24.8 percent of Indonesia’s GDP in the fourth quarter of 2025, up from 24.38 percent in the same period a year earlier.
The total economic value of the halal sector reached Rp1,524 trillion in the fourth quarter of 2025. Throughout the year, its contribution remained relatively stable, ranging between 24.8 percent and 27.3 percent of GDP.
KNEKS Director Sholahudin Al Aiyub said the figures underline the growing importance of the halal industry as a key engine of economic growth.
“The halal industry is no longer seen as a niche sector but has become an integral part of the national economic structure. Its contribution, which is approaching a quarter of GDP, reflects Indonesia’s vast halal economic potential,” Sholahudin said during the Sharia Economic Leaders Forum (SELF) organized by the Sharia Economic Society (MES).
In international trade, Indonesia’s halal exports have also shown strong performance. The value of halal product exports rose from US$40 billion in 2020 to US$50.58 billion in 2024.
Between January and October 2025, exports reached US$52.43 billion, marking a 26.15 percent increase compared to US$41.56 billion during the same period in the previous year.
Meanwhile, halal product imports declined by 17.75 percent to US$10.73 billion. This pushed Indonesia’s halal trade surplus up by 44.64 percent to US$42.29 billion.
According to Sholahudin, the combination of rising exports and falling imports signals stronger competitiveness for Indonesia’s halal industry.
“The much faster growth in exports compared to imports indicates that Indonesian halal products are increasingly accepted in global markets. This provides a solid foundation for strengthening Indonesia’s position in the global halal supply chain,” he said.
KNEKS data also show that in 2025, halal exports contributed approximately 4.39 percent to national GDP, with a total value of Rp1,045 trillion.
The largest share came from the halal food and beverage sector, which accounted for 84.39 percent of total halal exports. This was followed by textiles and textile products at 13.69 percent, pharmaceuticals at 1.14 percent, and cosmetics at 0.78 percent.
The dominance of the food and beverage sector highlights Indonesia’s strong comparative advantage in resource-based halal industries.
Globally, China and the United States remained the main destinations for Indonesian halal exports, each accounting for more than 16 percent of the market share. India, Malaysia, and Pakistan also ranked among the top five export destinations.
Despite the positive performance, KNEKS noted ongoing challenges, particularly the high dependence on imported raw materials. In 2025, around 70.45 percent of halal imports consisted of raw and intermediate goods, while capital goods accounted for 20.46 percent and consumer goods 9.09 percent.
Sholahudin emphasized that strengthening the upstream halal industry is essential for Indonesia to move beyond being merely an exporter of finished products and achieve greater supply chain independence.
“We need to enhance domestic production capacity for halal raw materials so that more value-added can be created within the country. This will further strengthen competitiveness and expand the economic benefits,” he said.
He expressed optimism about the future of Indonesia’s halal industry, citing rising global demand, improved national halal certification systems, and a growing sharia economic ecosystem.
“Indonesia has a strong opportunity to become a global halal production hub. The key lies in improving productivity, innovation, and product quality to compete sustainably in international markets,” he added.
Indonesianpost.com | Republika
