Intermestic Determinants Influencing Indonesia's Vision To Become The Global Halal Hub

Abstrak

Islam has been the fastest-growing religion in the last decades. The world's Muslim population has reached 1.9 billion people by 2022. Such growth makes Muslims the most influential segment in the global industry, particularly the global halal industry. The halal industry is not only a matter of food but has become a lifestyle. Facing such a challenge, Indonesia has taken ambitious steps to become the Global Halal Hub. Among them are by issuing Law No. 33 of 2014, Indonesia Islamic Economic Masterplan 2019-2024, Government Regulation No. 39 of 2021, Ministerial Regulation No. 20 of 2021, and changing the governance of national halal certification and standardization. The government has become more serious about its ambition in the halal industry by declaring a vision to become the Global Halal Hub. This study tries to explain the intermestic factors influencing Indonesia's halal policy transformation. The results of this study show that domestic and international factors influence the transformation in Indonesias halal policy. Domestic factors comprise the halal values ​​in the consumption behavior of Muslims in Indonesia, the shift in the domestic policy by centralizing halal certification, and competition among stakeholders in governing halal certification in Indonesia. The international factors comprise the global halal standards, the vigorous competition in the halal industry between Indonesia and the neighboring countries, such as Malaysia, Brunei Darussalam, Singapore, and Thailand, and between Indonesia and major players of the global halal industry, such as Brazil, India, and the United States.