OJK Mentions the Economic Circulation of the Halal Industry Reaching IDR 36 Trillion

Jakarta – Chief Executive Officer of Supervision of Financial Services Business Conduct, Education and Consumer Protection of the Financial Services Authority (OJK) Friderica Widyasari Dewi said the economic circulation through halal industry products in the world reached Rp36 trillion.

The woman who is familiarly called Kiki said that in recent years the world’s halal industry has experienced very rapid development. Where in 2023 the Muslim population in the world will spend their money on halal industrial products.

“The world’s Muslim population spends on halal industry products, including halal food, modest fashion, media and recreation, Muslim-friendly tourism, pharmaceuticals and cosmetics with a total economic turnover value of around IDR 36 trillion,” said Kiki in the Urgency of Halal Products for a Sustainable Indonesian Economy Webinar, Monday, August 26, 2024.

The progress of the halal industry is inseparable from several supporting factors. Starting from the demand side, the increase in the millennial and Gen Z population in the world as the largest spender of 27.8 percent who are Muslims.

Then, the increase in purchasing power and public awareness to have a lifestyle that is in accordance with religion and universal Islamic values that can encourage increased consumption and products.

“This is supported by digital developments that facilitate access to information and markets,” he added.

From the supply side, including through the relationship between government policies and strategies that prioritize Islamic finance as one of the drivers of the country’s economy.

“In terms of financial and trade activities, the value of Islamic financial transactions in 2023 will increase 5 times from the previous year,” Kiki concluded. (*)