Indonesia's Vice President, Ma'ruf Amin, has embarked on a mission to encourage Shanghai businesses to tap into Indonesia's lucrative halal industry, valued at approximately $135 billion. During his recent trip to China, Ma'ruf met with Shanghai Mayor Gong Zheng to discuss economic cooperation. Indonesia, as the world's most populous Muslim-majority nation, holds significant potential in the halal sector, which includes halal food, modest fashion, and Muslim-friendly tourism. Ma'ruf highlighted the forecasted growth of the halal value chain at 4.5% to 5.3% in 2023 and urged for it to become a part of the Indonesia-China business partnership.
The domestic spending in Indonesia's halal economy products and services reached $184 billion in 2020, with projections suggesting it will reach $281.6 billion by 2025, as per the 2021/2022 Indonesia Halal Markets Report. This report also recognizes Indonesia as the world's largest halal consumer market. In 2020, the largest sector within Indonesia's halal economy was food and beverage, with Muslims spending $135 billion, followed by Muslim fashion ($15.6 billion), halal pharmaceuticals ($5.13 billion), and cosmetics ($4.19 billion). Indonesia's Muslim population is substantial, numbering around 229.6 million as of 2020.
It's worth noting that China was the second-largest foreign investor in Indonesia in 2022, closely following Singapore. Chinese investments in Indonesia reached approximately $8.2 billion last year, while Singapore's investments totaled $13.3 billion during the same period. This underscores the growing economic ties between Indonesia and China, making exploring Indonesia's halal industry a potentially significant opportunity for Chinese businesses.
