The Importance of the Halal Industry in Sharia Economic Development in Indonesia: Opportunities and Challenges

Abstract

The purpose of this research is to examine the critical role of the halal business in speeding the growth of the Islamic economy in Indonesia. This research also highlights possibilities and difficulties in the halal business. In this study, a descriptive qualitative methodology involving library research was applied. According to the findings of this study, the Islamic economy is now accelerating in its growth. This is inextricably linked to the function of the halal business, particularly the key areas of food, medicines, tourism, clothes, media, and halal recreation. Opportunities for the halal industry in many sectors remain abundant, given that Indonesia has one of the world's biggest Muslim populations, with a total population of 231.06 million in 2021. Rapid technical advancements, as well as government backing through laws and instruments, create an excellent potential for this business. International halal products are beginning to enter Indonesia, there is a low utilization of information technology, policies between ministries and institutions are not yet harmonized, and there is a lack of financing, data, and research on the halal economy.