Indonesia set to take in $2.2 billion from mandatory halal labeling

Halal labeling will now be compulsory in the Southeast Asian state

Halal kimchi (Photo/Wikimedia)

Halal kimchi (Photo/Wikimedia)

TAIPEI (Taiwan News) – Indonesia is expected to rake in US$2.2 billion in annual revenue thanks to the implementation of mandatory halal labeling this year, a local official said.

According to a regulation passed in 2014, the country will have to put into effect compulsory halal labeling by Oct. 17, 2019, reports the Straits Times.

Indonesia will issue halal certificates to goods ranging from food and beverages to health products such as shampoo and toothpaste. The system will be implemented gradually and will take three to seven years to complete, said Sukoso, head of the Halal Product Guarantee Agency (BPJPH).

The country seeks to revamp its halal certification rules to accommodate a Shariah economy poised to swell to US$427 billion by 2022, the report said, adding that food alone makes up more than 50 percent, based on statistics from Bank Indonesia.

The current mechanism will be expanded so certifications are issued to cover unpackaged merchandise, slaughterhouses, training services, and more. At least 100,000 certificates are expected to be issued by BPJPH in 2020.

Indonesia boasts the largest Muslim population in the world, with over 87 percent of Indonesians identifying as Muslim in a 2010 census.