Indonesia’s halal industry: Opportunities, challenges, and strategic directions

Abstract

Purpose – This study aims to provide a comprehensive analysis of the opportunities, challenges, and strategic frameworks for developing Indonesia's halal industry. It aims to identify the key drivers of growth while simultaneously addressing the fundamental obstacles that hinder its potential.
Methodology – This research employs a descriptive-analytical qualitative approach, utilizing a literature review and content analysis of secondary data. The sources included academic articles, official reports, and policy documents. The data were analyzed to synthesize key themes and formulate a cohesive strategic framework for stakeholders.
Findings – The findings reveal that Indonesia's halal industry possesses significant opportunities, driven by its vast Muslim population, strong government support, and strategic geographical location. However, it faces major challenges, including fragmented inter-agency coordination, a complex halal certification process for MSMEs, and a lack of qualified human resources to implement the program.
Implications – This study offers a practical, integrated strategic model that provides clear policy recommendations for the government and actionable guidance for businesses. The findings are expected to contribute to the academic discourse on the Islamic economy and provide a roadmap for accelerating the growth of Indonesia’s halal industry, positioning the country as a key global player.
Originality – This paper provides a holistic and integrated analysis that bridges the gap in the existing literature by systematically connecting the interplay between regulatory, supply chain, and human resource challenges. It proposes a unique and comprehensive strategic model that offers practical and prescriptive solutions for all stakeholders.