Strategy for Development of the Indonesian Halal Industry in the Sharia Financial Sector to Face Global Halal Competition

Abstract

This study examines the pivotal role of Islamic financial institutions in advancing the halal industry through innovative financial products, operational efficiency, and Sharia-compliant financing mechanisms. Using a qualitative descriptive approach, this research combines normative theological and phenomenological perspectives. Data were collected from secondary sources, including books, journals, articles, and reports, as well as primary data obtained through interviews with key informants. Data analysis involved data reduction, classification, and validation, with the triangulation method employed to enhance the credibility of the findings, minimize bias, and provide a comprehensive understanding of the potential for developing Indonesia’s halal industry. The study also highlights strategic government policies, such as the establishment of the Halal Product Assurance Agency (BPJPH) and the implementation of mandatory halal certification by 2024, which are designed to strengthen Indonesia’s halal ecosystem. By improving Islamic financial infrastructure, increasing public awareness, and promoting collaboration among stakeholders, Indonesia aims to enhance the competitiveness of its halal products and establish itself as a global hub for the halal industry. To address global challenges and maximize opportunities within the Islamic economy, an integrated and collaborative approach is essential. This research underscores the importance of synergy between financial institutions, government policies, and industry players to achieve sustainable growth in the halal sector.