An Assessment of Indonesia’s Halal Market Development Potential

The concept of Halal is an absolute criterion for the Muslim consumer selecting products and services. In Indonesia in particular, Halal consumer products are considered comparatively safer and of higher quality than other domestically produced options. Due to its young, growing and mostly Muslim domestic market, Indonesia has developed key skills in satisfying demand for Halal goods and services, building a competitive industry in the import and manufacture of Halal goods. Combined with a trend towards local investment in Halal companies, and domestic collaboration among companies and outside partners, Indonesia has developed a distinct country advantage in the Halal goods marketplace. As this marketplace becomes more globalized, Indonesia has a strong opportunity to convert its expertise into industry leadership in Sharia-compliant goods production. This paper highlights the competitive forces shaping the Halal business market in Indonesia and amongst its competitors, and draws recommendations for enabling future growth in world markets.