JAKARTA, Dec 27, 2025 — Indonesia’s halal industry is expected to gain significant momentum in 2026 through the implementation of the Free Nutritious Meals Programme (MBG), which has been allocated a substantial budget of Rp335 trillion, positioning it as one of the country’s most strategic economic and social initiatives.
According to Handi Risza, an economist at the Center for Sharia Economic Development (CSED) under the Institute for Development of Economics and Finance (Indef), the halal industry has become an increasingly important driver of Indonesia’s national economic growth. He emphasised that this rapid transformation must be carefully guided to ensure that the development of the sharia economy and Islamic finance remains inclusive, sustainable, and resilient as Indonesia approaches 2026.
Risza noted that the halal-based real sector continues to show strong expansion potential, supported by structural reforms and institutional strengthening. Among the most significant developments is the establishment of the Halal Product Assurance Agency (BPJPH), a non-ministerial government body operating directly under the President. With authority equivalent to that of a ministry, BPJPH is expected to accelerate halal product development and certification in line with Indonesia’s National Priority Programmes.
One of the most strategic opportunities for halal industry growth in 2026 lies in the MBG programme itself. The large-scale initiative is expected to significantly increase demand for halal-certified food products, strengthening the entire halal value chain — from raw material sourcing and processing to logistics, quality assurance, and certification. This, in turn, presents major opportunities for micro and small enterprises, food manufacturers, and halal service providers nationwide.
Indonesia’s sharia economy has also demonstrated strong global performance. Based on the State of the Global Islamic Economy (SGIE) Report 2024/2025 by DinarStandard, Indonesia retained its position as the third-largest Islamic economy in the world, achieving a score of 99.9 on the Global Islamic Economy Indicator (GIEI), an increase of 19.8 points year-on-year.
The report further highlighted Indonesia’s position as the world’s largest halal investment destination in 2023, recording 40 transactions valued at USD1.6 billion across halal food, cosmetics, pharmaceuticals, halal technology, and Muslim lifestyle sectors. This achievement reflects growing international investor confidence in Indonesia’s halal ecosystem.
Meanwhile, the launch of the Daya Anagata Nusantara Investment Management Agency (Danantara) in early 2025 is expected to become a major financing engine for the national halal industry. With a targeted investment value of Rp720 trillion in 2026, Danantara is projected to channel funding into priority sectors including sharia finance, food, pharmaceuticals, logistics, and the development of Halal Industrial Zones (KIH). Among its early initiatives is a planned Rp20 trillion investment for the Hajj Village project.
Collectively, the MBG programme, institutional reforms, and strategic investments are set to strengthen Indonesia’s position as a leading global halal industry and sharia economy hub in the years ahead.
SOURCE : INDEPENDENT OBSERVER
