(Photo by: Tempo.com)

Indonesia’s halal export sector is expected to weather Donald Trump’s 32% import tariff on Indonesian goods without significant disruption, according to industry experts. The resilience stems from the country’s strategic focus on diverse international markets beyond the United States.

Diversified Export Strategy Provides Buffer

Sapta Nirwandar, who leads the Indonesia Halal Lifestyle Center, emphasized that Indonesia’s halal export volume to America represents only a small fraction of the overall market. The country has strategically positioned itself to serve European nations and Organization of Islamic Cooperation (OIC) member states as primary export destinations.

“Indonesia commands a substantial presence in trillion-dollar markets outside the US,” explained Nirwandar, who previously held the position of Deputy Minister of Tourism and Creative Economy. This diversification strategy has created a robust foundation that can absorb potential disruptions from US trade policies.

Strong Global Market Position

Industry research supports Indonesia’s confident outlook. Reem El Shafaki from DinarStandard, a specialized Islamic economy research firm, highlighted Indonesia’s competitive advantage in halal food exports, particularly within OIC countries and Brazil. The country has established itself among successful Islamic food exporters on the global stage.

Third-Place Global Ranking Maintained

The State of the Global Islamic Economy (SGIE) report confirms Indonesia’s sustained performance, ranking third globally in the halal industry for 2024/2025. This marks three consecutive years of maintaining this position, with Malaysia leading the rankings and Saudi Arabia in second place.

Sector-Specific Leadership

Indonesia’s halal industry dominance extends across multiple sectors. The country holds the top position in Islamic fashion and secures second place in both Muslim-friendly tourism and pharmaceutical-cosmetics categories. This diversified leadership demonstrates the breadth of Indonesia’s halal economy ecosystem.

Investment Leadership Achievement

A significant milestone was reached in halal industry investment, with Indonesia attracting $1.6 billion out of the total $5.8 billion global investment in 2023/2024. This achievement pushed Indonesia ahead of the United Arab Emirates to become the largest recipient of halal industry investment worldwide.

Government Support and Ecosystem Development

The success in attracting investment reflects effective government policies and systematic halal ecosystem development. El Shafaki attributed Indonesia’s investment leadership to these supportive frameworks that have created an attractive environment for halal industry growth.

Export Market Potential

While Indonesia ranks among the top 10 halal product exporters globally according to SGIE data, industry experts believe significant room for growth remains. The country’s current export market share suggests untapped potential for further expansion in the global halal trade.

Strategic Implications

The resilience of Indonesia’s halal exports against US tariff policies demonstrates the value of market diversification and specialized positioning. By focusing on regions with strong Muslim populations and halal product demand, Indonesia has created a sustainable competitive advantage that transcends individual country trade relationships.

This strategic approach not only protects against trade disruptions but also positions Indonesia to capitalize on the growing global demand for halal-certified products across multiple industries and geographic markets.

Original Article:

Tempo.co. (2025, July 8). Trump’s Tariff Policy Unlikely to Affect Indonesia’s Halal Exports. https://en.tempo.co/read/2025833/trumps-tariff-policy-unlikely-to-affect-indonesias-halal-exports