Prospects of KSA, Indonesia high in $2.1 trillion global halal industry

Jeddah hosts Indonesia Halal Investment Forum


By Hassan Cheruppa

Saudi Gazette

The potential and opportunities of the global halal industry were quite large and promising and its total value has reached around $2.1 trillion. “This makes the halal industry one of the fastest growing consumer segments in the world,” according to Rizal Purnama, director for Middle-East Affairs at Indonesia’s Ministry of Foreign Affairs.

He made the remarks while addressing the Halal Investment Forum 2019 in Jeddah on Wednesday. The Consulate General of Indonesia organized the event in collaboration with Indonesia’s Central Bank (Bank Indonesia) at Balai Nusantara, the residence of Indonesia’s Consul General.

Purnama said Saudi Arabia remains a powerful leader in the Islamic economy. “It is now ranked fourth for Islamic finance, with close to $500 million in assets across 129 Islamic finance institutions, and ranked among the top 10 for pharmaceuticals and cosmetics. Capitalizing on being the center of the Muslim world, and in line with its Vision 2030 to diversify the economy, Saudi Arabia has substantial potential to become a leading entity in the halal industry” he said.

In his speech, Consul General Mohamad Hery Saripudin emphasized that concerted efforts between government institutions and business firms reflected a solid synergy between government and private sectors. “We go hand in hand to foster the economic and investment cooperation for the benefit of Indonesia and Saudi Arabia,” said Saripudin.

“The forum was in line with the ambitions of the Saudi government as set out in its Vision 2030, one of which is to diversify economy and reduce its dependence on oil,” he said.

The Consul General noted that the event is a “warm up” forum for Saudi entrepreneurs and prospective investors to attend the Indonesia Shariah Economic Festival (ISEF) in Jakarta in November 2019 and Halal Summit, scheduled to be held in Jakarta in November 2020.

Those who attended the forum also included Director for Shariah Economics and Finance of Bank Indonesia Diana Yuanita, Chairman of Indonesia Halal Lifestyle Center (IHLC) Sapta Nirwandar, Rafi-uddin Shikoh, CEO of DinarStandard, a research firm based in Dubai dan New York, as well as the representatives of Indonesian companies and local halal industry stakeholders.

As the main sponsor of the forum, Bank Indonesia’s Diana Yuanita said there were strong indications that the halal economy and industry would be one of the main drivers of economic growth.

“I hope our meeting today can enrich insights around halal business and industry and provide value through strategic partnerships between halal business people in Indonesia and Saudi Arabia,” Diana said.

IHLC Chairman Sapta Nirwandar said that economic cooperation between Indonesia and Saudi Arabia has strengthened after the exchange of visits of the two leaders of Indonesia and Saudi Arabia. On his part, Rafi-uddin Shikoh, CEO of Dinnar Standard, said that the company delegates, who participated in the forum, represented major business sectors that provide export opportunities for Indonesia.

The participants engaged in a business matching that brought together stakeholders of the Indonesian halal industry with potential investors in Saudi Arabia. Indonesian companies represented in the forum included Phalosari, Rendang Katuju, The Paradise World Resort, Naiila Halal Nail Polish, Islamic Fashion Institute, CIMB Niaga Syariah, Epic Group and Harum Qalbu Gelatin Factory.

The forum provided a platform for business cooperation aimed at enlarging the production capacity of the Indonesian halal industry to enter the export market, particularly Saudi Arabia and the neighboring regions.