Kadin Affirms Halal Product Policy Not Impede MSMEs



Petir Garda Bhwana

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  • TEMPO.CO, JakartaIndonesian Chamber of Commerce and Industry (Kadin) head Fachry Thaib affirmed the government regulation concerning the halal product guarantee will not impede the business sector, including micro, small, medium enterprises (MSMEs).

    “MSMEs will even get special treatment, especially in the [halal] certification cost,” said Fachri who is also the Chairman of the Permanent Committee on the Middle East and OIC Countries, Tuesday, July 9.

    According to him, MSMEs made the biggest contribution to the national gross domestic product (GDP) at over 60 percent. As of date, the total number of small scale business in Indonesia amounted to 93.4 percent, while medium enterprises at 5.1 percent, and the large business only at 1 percent.

    Throughout 2018, halal product trade reached USD2.8 trillion or Rp39.5 trillion, USD1.4 trillion of which was in the food and beverage sector, USD506 billion in the pharmaceutical sector, USD230 billion in cosmetics products, and USD600 billion in other sectors.

    “So we call every business actor both for domestic trade and exports to be prepared to embrace Indonesian halal era,” Fachry said.

    Indonesia, he added, was still far behind Malaysia, Thailand, and Singapore in the ASEAN regional market competition. “So national businessmen must be united to catch up and seize as many as possible global halal products markets,” Fachry asserted.