• Indonesia Indonesia

Indonesia is the largest economy in Southeast Asia. It is currently the country with the largest Muslim population in the world - approximately 204 million in 2010, according to Pew Research Center. Its total population in 2015 was estimated at 257.6 million by the World Bank. Indonesia is categorized a lower middle income country. It has a very young population, with a median age of 29.2 years (Index Mundi).

ISLAMIC ECONOMY: With around 90 percent of the poulation Muslim, Indonesia has a very large Islamic Economy with strengths in food, travel, Islamic modest fashion, and pharma and cosmetics.

Indonesia's digital economy is very lively and the country is mobile-first. It is estimated that 70 percent of web pages in Indonesia are served on mobile phones and more than nine in 10 social network users in the country access social media via a mobile phone. The country has an estimated 88 million connected to the Internet. According to research firm eMarketer, Indonesia is poised to become the world’s fifth biggest internet population with 123 million users by 2018, many of whom will access internet for the first time via mobile devices.

Indonesia is a top five country for the key social media networks, including Facebook and Twitter, and its young and vibrant Islamic modest fashion sector leverages social media extremely well for marketing and publicity purposes. 

Indonesia is working to expand and deepen its Islamic finance industry. For a country of its population of Muslims, Islamic finance penetration is low, around 5 percent, compared to Malaysia with over 20 percent and Saudi Arabia with over 50 percent. Authorities want Indonesia's Islamic banks to hold at least 15 percent of the market by 2023, an ambitious target considering the sector's growth is stalling.

In halal tourism, Indonesia has set a four-year target to increase halal tourism from 2 million visitors a year currently to 5 million by 2019. The government has laid out plans to improve infrastructrure to make the country safer and more attractive to halal-sensitive tourists, including opening new flight routes to key attractions, increasing halal-certification efforts, encouraging halal hotels, and providing halal and Islamic options for beach attractions. 

GIEI Ranking10
Halal Ranking6th top OIC destination (MasterCard and CrescentRating Global Muslim Travel Index 2015)
Major Industries

Agriculture, Industry and Services are Indonesia's key economic sectors. 

Agriculture (pct of GDP)51241615
Industry (pct of GDP)13424347
Services (pct of GDP)36344137

Source: World Bank

Halal-related agencies Intro

Currently, the Indonesian Ulama Council (MUI), the nation’s top Muslim clerical body, works with the Lembaga Pengkajian Pangan Obat obatan dan Kosmetika (LPPOM), the country's Food and Drug Analysis Agency, as the sole national certifier. Established in 1998, LPPOM MUI cooperates with the Ministry of Religious Affairs, Ministry of Agriculture and Ministry of Cooperatives and SMEs, Ministry of Commerce, Ministry of Industry, Ministry of Marine Affairs and Fisheries, Ministry of Tourism and Creative Economy and a number of university/colleges in Indonesia.

Apart from its own halal certification, LPPOM MUI also recognises other halal certificates issued by organisations that it approves. As at Oct, 2014, the list comprises 39 Halal Certifier Bodies from 23 countries, including 31 approved for (cattle) slaughtering , 32 for food processing , and 14 for flavours/flavouring. The list can be found on the LPPOM MUI website. Foreign halal certification is effective for 2 years after which they have to be re-approved.

The Indonesian government's Ministry of Religious Affairs will take over halal certification from 2017 with its Halal Products Certification Agency (Badan Penyelenggara Jaminan Produk, BPJPH). The new body will facilitate the administrative process of halal certification, which involves receiving all applications, collecting their fees, and issuing certificates.

MUI's role will be limited to issuing fatawa and conducting the audit process, which will also be given to other organisations such as universities and civil societies in order to speed up the work. 

Halal compliance guidelines Intro

First, you have to go to the Indonesian Ulema Council (MUI), the nation’s top Muslim clerical body and the only acknowledged halal certification organization in the country. 

Start the application process by registering your firm online atwww.Halalmui.org orwww.e-lppommui.org. (LPPOM is the MUI Food and Drug Analysis Agency)

Users must fill out a special form and attach the following items to it:

1. Specifications and existing halal certificates of all ingredients your company uses
2. Other existing halal certificates or a halal notification letter from an MUI regional branch (for local products) or a halal certificate from an overseas certifying institution that has also been acknowledged by the MUI (for imported products). It is important to note that this only applies to products derived from animals
3. A Halal Assurance System manual
4. A production flow chart
5. Any and all data on your company, its products and the ingredients used in them
Halal-related trade and trading