The Growing Influence of Halal Standards on Indonesia’s Product Landscape

October 19, 2026

Indonesia has around 236 million Muslim, accounting for 87% of its total population. With the majority of the population being Muslim, halal assurance is an important consideration in products available and consumers’ purchasing decisions. However, halal is not only about the ingredients used. It also relates to the concept of thayyib, which covers cleanliness, safety, purity, how ingredients are sourced, and the benefits of a product. Therefore, consumers need assurance that the products they use are not only halal but also safe and suitable for their needs.

Consumer trust in halal products is also influenced by halal certification and logos. These help consumers identify products that halal requirements and feel more confident when making a purchase. Other factors, such as perceptions of a product’s halal status, religiosity, product characteristics, safety, and cleanliness, can also influence purchasing decisions. Halal certification is therefore not just a regulatory requirement; it is also an important way to build consumer trust.

Indonesia’s halal market is also reflected in the growing number of new product launches with halal claims. The number of product variants increased from 715 in 2021 to 7,955 in 2025, representing an increase of around 1,013%. According to the State of the Global Islamic Economy (SGIE) Report 2025/2026, Indonesia ranked fourth in the Global Islamic Economy Indicator (GIEI), which measures the strength of the global Islamic economy ecosystem. These developments highlight Indonesia’s significant halal market potential, while also emphasizing the importance of strengthening the ecosystem and industry competitiveness.

Under Government Regulation No. 42 of 2024, certain product categories must meet halal certification requirements by October 17, 2026, including food and beverage products from micro and small enterprises (MSEs). The regulation also requires businesses to list the products and ingredients used in the certification process, as stated in Article 67(2)(c). Under Article 70(1), these products and ingredients must meet halal requirements and be supported by Halal Certificates, subject to applicable exemptions. This makes checking ingredient status an important step in product development. This is particularly important when using natural ingredients, as they are not always halal. Their halal status depends on their source, processing methods, and other materials used. Companies must therefore verify the halal status of their ingredients and obtain the necessary supporting documents from suppliers.

Considering halal requirements early in product development helps companies prepare for the certification process. Choosing ingredient suppliers that can provide halal-certified materials is an important part of this process. Haldin offers a wide range of halal-certified natural ingredients for applications in food, beverages, and personal care. With suitable ingredients, companies can consider halal requirements from the early stages of product development while meeting market needs.

 

Source :

Peraturan Pemerintah Republik Indonesia Nomor 42 Tahun 2024

Mintel.com

https://ojspustek.org/index.php/SJR/article/download/1075/743

https://www.uinjkt.ac.id/id/mengapa-indonesia-belum-menjadi-raksasa-ekonomi-halal-dunia

https://acopen.umsida.ac.id/index.php/acopen/article/view/13167