Halal Certification Seen as Catalyst for Growth in Indonesia’s Cosmetic Sector
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- Indonesia will mandate halal certification for all cosmetic products by October 2026 to enhance industry competitiveness and consumer trust.
- The policy is expected to open wider market access for MSMEs, supported by government programs such as free halal certification.
- Experts stress that certification must be accompanied by stronger innovation, research, and ecosystem development to compete globally.
Jakarta – The policy is widely seen as a strategic step to enhance the competitiveness of Indonesia’s halal cosmetic sector, which continues to experience steady growth amid rising global demand.
Murniati Mukhlisin, a researcher at the Center of Sharia Economic Development (CSED) at the Institute for Development of Economics and Finance (INDEF), emphasized that halal certification should not be viewed as an administrative burden for businesses. Instead, she described it as a strategic investment that can build consumer trust and unlock broader market opportunities.
“Many micro, small, and medium enterprises (MSMEs) have gained wider market access and stronger consumer confidence after obtaining halal certification. It should therefore be seen as a tool to enhance business competitiveness,” Murniati said during a public discussion hosted by CSED INDEF on Monday.
To support businesses, the government has introduced several assistance schemes, including the free halal certification program known as SEHATI. The initiative is designed to help micro and small enterprises comply with certification requirements without facing significant financial constraints.
However, Murniati cautioned that certification alone will not be sufficient to elevate the competitiveness of Indonesia’s cosmetic industry. She stressed the importance of strengthening other critical areas, including product development, packaging innovation, digital marketing capabilities, and access to financing.
According to the State of the Global Islamic Economy (SGIE) Report 2025/2026, the global halal cosmetics market was valued at approximately $92 billion in 2024 and is projected to reach $124 billion by 2029, growing at an average annual rate of 6.3 percent.
Indonesia currently ranks fourth globally in the halal cosmetics sector, trailing Malaysia, the United Arab Emirates, and Singapore.
The report also highlighted that imports of cosmetic products among member countries of the Organization of Islamic Cooperation (OIC) reached $22.49 billion, signaling substantial untapped opportunities for Indonesian producers to expand their presence in international markets.
Murniati noted that Indonesia possesses strong fundamentals to become a leading player in the global halal cosmetics industry. These include the world’s largest Muslim population and abundant biodiversity, which offers a rich source of natural ingredients for cosmetic and personal care products.
Nevertheless, she underscored the urgent need to strengthen research and innovation to ensure that Indonesia does not merely serve as a consumer market but emerges as a producer of high-value, competitive products.
“What needs to be reinforced is not only certification, but the entire industrial ecosystem—from research and raw materials to financing and international market access,” she said.
The mandatory implementation of halal certification in October 2026 is expected to serve as a catalyst for improving product standards while expanding Indonesia’s share in the rapidly growing global halal economy.
Indonesianpost.com | Republika
