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Economic diplomacy in filling the gap of global halal market
Being the most populous Muslim-majority country in the world, Indonesia possesses enormous potential in developing its national halal industry and becoming one of the most significant export contributors in the global halal market. The problem is homegrown businesses in Indonesia have yet to position themselves for the lion's share of this market. This was reflected in 2020's overall Global Islamic Economy Indicator Score Rank, in which Indonesia placed 4th. The situation created a gap as Indonesia is more than capable of becoming the largest producer of halal products. The global halal industry has been growing steadily for the past two decades, and Indonesia needs to tap into its immense potential of USD2.02 trillion consumer spending that is expected to continue growing and reach USD2.2 trillion by 2024.
This paper aims to highlight several economic diplomacy policies that the Indonesia Ministry of Foreign Affairs can implement in championing the global halal market, namely: 1) conducting market research to map prospective country, product, competitors, distribution channel, and means of promotion that Indonesian product may enter; 2) leading the pursuance of a unified global halal standard; and 3) conducting cooperation in the form of a Mutual Recognition Agreement to reduce trade barriers stemming from different halal standards in various jurisdictions.
| 2021-0232 | Sekdilu 42-2021 | Training Materials Repository | Tersedia |
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