Indonesia is the country with the world’s largest Muslim population. With steady economic growth and increasing purchasing power, the demand for halal products continues to rise. Prof. Dr. Anggito Abimanyu, Chairman of the Indonesia Deposit Insurance Corporation (LPS), shared insights on the development of the halal industry in Indonesia. The halal industry in Indonesia and various other countries has shown significant growth in line with the rising Muslim population and increasing awareness of healthy lifestyles. This condition makes the discourse on halal products increasingly relevant and an integral part of practical theories already implemented in modern economic practices.
At the 3rd International Conference on Islamic and Halal Industry, organized by the Doctoral Program in Islamic Economics and Halal Industry of the UGM Graduate School and FEB UGM on November 4, 2025, at the Marriott Hotel Yogyakarta, Anggito explained that halal product regulations in Indonesia are governed by Law Number 33 of 2014 concerning Halal Product Assurance (JPH). This regulation covers various aspects of halal products, including the Halal Product Process (PPH), the Halal Product Assurance Agency (BPJH), Halal Inspection Bodies (LPH), halal auditors, as well as halal certification and labeling.
The government also requires halal certification for Micro, Small, and Medium Enterprises (MSMEs) to enhance the global competitiveness of Indonesian halal products. However, Anggito noted that this regulation could place a burden on BPJH. Moreover, the cost of obtaining halal certification is not insignificant, and bureaucratic hurdles remain, making the process difficult. He expressed concern that these challenges may lead to inefficiencies in implementation due to the large scale involved.
Therefore, Anggito recommended that the government simplify the halal certification process to improve efficiency. He also emphasized the importance of harmonizing regulations and recognizing halal labels across countries to expand the global reach of Indonesian halal products.
“A Fatwa Committee consisting of experts, religious scholars, and academics is needed to ensure efficiency and independence in halal product oversight,” he explained.
He stressed that such measures would strengthen Indonesia’s position in the global halal industry without being hindered by convoluted bureaucracy.
“The halal industry needs a more progressive, dynamic pathway and a sustainable future. For this reason, global cooperation is key to accelerating this process,” Anggito concluded.
Report by: Najwah Ariella Puteri
Editor: Kurnia Ekaptiningrum
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