Strengthened Policies and Innovation Drive Global Leadership

Indonesia has officially secured the number one position in the global modest fashion sector, according to the 2024–2025 State of the Global Islamic Economy Report (SGIER). The nation’s achievement reflects consistent growth in halal industry development, driven by robust regulations, creative innovation, and increasing public awareness of halal lifestyle principles.

Minister of Industry Agus Gumiwang Kartasasmita announced that Indonesia now surpasses Malaysia, Italy, Turkey, and Singapore in the modest fashion category, achieving a score of 106.5.

“Among six sectors evaluated in the halal ecosystem, Indonesia ranks highest in modest fashion,” the Minister stated, as reported by Antara News.

Expanding Halal Market Across Multiple Sectors

Besides leading in modest fashion, Indonesia ranked second in halal pharmaceuticals and cosmetics with a score of 85.8, and fourth in halal food at 76.78, trailing behind Malaysia, Singapore, and the United Arab Emirates.

In the overall halal ecosystem development index, Indonesia placed third globally, behind Malaysia and Saudi Arabia. However, Indonesia demonstrated notable progress by gaining 19.8 points, while Malaysia’s score declined by 28.1 points.

The SGIER ranking considers multiple indicators, including financial infrastructure, halal certification regulations, social impact, and innovation capacity, all of which reflect a country’s ability to foster a sustainable halal economy.

Domestic Consumption and Investment Growth

The global halal market continues to expand rapidly. In 2023, Muslim consumer spending across six Islamic economy sectors reached USD 2.43 trillion and is projected to grow to USD 3.36 trillion by 2028.

As the world’s largest Muslim-majority nation, with approximately 246 million Muslims, Indonesia has immense domestic potential. In the second half of 2025 alone, household consumption reached IDR 3,226.1 trillion (USD 205 billion), highlighting strong local demand for halal products and services.

Investment in halal-related sectors, including Islamic finance, reached USD 5.8 billion between 2023 and 2024. Indonesia received the largest portion—USD 1.6 billion, underscoring investor confidence in the country’s halal economy.

Halal Certification and Export Challenges

As of 2025, 140,944 companies in Indonesia have obtained halal certification—130,111 in halal food, 10,383 in halal beverages, and 1,633 in halal pharmaceuticals and medicine. These figures demonstrate Indonesia’s growing institutional and business engagement in halal compliance.

However, despite significant progress, challenges remain in the export sector. In 2023, Indonesia’s halal product exportsto member states of the Organization of Islamic Cooperation (OIC) amounted to USD 12.33 billion, placing the country ninth among OIC exporters. Meanwhile, imports from OIC countries reached USD 29.64 billion, indicating a trade imbalance in halal goods.

Strengthening Indonesia’s Global Role in the Halal Economy

Minister Kartasasmita emphasized that while progress has been encouraging, continuous efforts are essential to fully harness Indonesia’s halal potential.

“There is still much work to be done to harness the full potential of the halal economy. But the foundation we’ve built shows promising prospects for Indonesia’s global role,” he stated.

With ongoing regulatory improvements, expanding market access, and growing innovation, Indonesia is well-positioned to strengthen its role as a global leader in halal lifestyle industries, particularly in modest fashion, halal beauty, and halal-certified manufacturing.

Original Article:

Radio Republic Indonesia (RRI). (2025). Indonesia’s Muslim fashion industry ranks first globally. Retrieved from https://rri.co.id/en/business/1913373/indonesia-s-muslim-fashion-industry-ranks-first-globally