Based on the latest Global Islamic Economy Score, as the largest Muslim country in the world, Indonesia’s halal industry is still far left behind compared to other Moslem countries. With $154.9 billion of halal food market; $5.5 billion of halal pharmaceutical market; $3.3 billion of halal cosmetics market, Indonesia only ranks 10th, whereas Malaysia ranks 1st despite the fact that Malaysia has much smaller population. This illustrates that Indonesia has failed to optimize its huge Moslem population as the key to boost its domestic halal industry and economy.
To improve the situation the government has taken serious intervention by issuing the act no 33/2014 about halal product assurance which aims to assure and provide convenience, security, safety, and availability of halal products for the society and to increase the value added in halal products so that the halal industry will grow by igniting the private sector to produce and sell them. The main impact of the issuance of this act is every product that being traded and entering Indonesia’s market has to be halal certified five years after the ratification of this act and puts the Halal Products Assurance Agency (BPJPH) as the main administrator of the halal certification process.