The Islamic economy has emerged as a powerful force in an ever-evolving global landscape. It is shaped by the principles of Shariah and driven by a quest for inclusive growth, ethical investments, and sustainable development.

Among the nations contributing to this dynamic sector, Malaysia has consistently set the benchmark, securing the top position in The Global Islamic Economy Indicator (GIEI) for ten consecutive years since the report's inception in 2013, surpassing countries with larger export volumes.

2024 marks a momentous occasion for Malaysia as it celebrates the Golden Jubilee of Halal Malaysia, the nation's halal certification registered trademark renowned globally. This milestone signifies 50 years of unwavering dedication and commitment to Halalan Toyyiban (lawful good things), assuring quality and integrity in products for consumers worldwide and upholding the principles of excellence (Itqan) and integrity (Nazaha).

Far from solely focusing on economic gain, this journey has profoundly shaped Malaysia's identity, establishing it as a global leader and trusted voice in halal certification and standards.

Contributions to global halal certification
Halal certification in Malaysia began in 1974 when the monarch and government recognised the need to regulate and ensure the integrity of halal products. This initiative aimed to protect Muslim consumers' rights and provide assurance that the products they consumed adhered to Islamic laws.

Halal Malaysia's journey began not with meat products but with certification for cooking oil made from Malaysian palm oil, highlighting the nation's early understanding of the vast scope and potential of the halal market.

Over the years, the halal certification process has evolved, becoming more rigorous and encompassing a more comprehensive range of products and services. This has established Malaysia as the global leader in halal standards and certification. 

Halal pharmaceuticals: A paradigm shift
Coincidentally, 2024 also marks the 25th year since the first Halal Malaysia certification was issued for vitamins and health supplements manufactured by a local large corporation pharmaceutical manufacturer in Malaysia. This milestone is a testament to Malaysia's pioneering role in the halal pharmaceuticals sector.

The introduction of halal-certified pharmaceuticals, supported by the world’s first ISO-level Halal Pharmaceuticals Standard MS2424, has revolutionised the industry domestically and internationally, aligning it with Halal Malaysia's principles of integrity and excellence.

It is a commendable breakthrough, marking a paradigm shift in mindset since health often falls under the “Dharurah” situation, where halal status is not the primary concern for consumption by Muslims. It also paves the way for a more inclusive and accessible halal market.

The Halal Malaysia journey paved the way for this game-changing mode in the pharmaceutical industry by creating a rigorous and trustworthy certification process that mirrors the stringent requirements of conventional pharmaceutical regulations.

Just as the pharmaceutical industry follows continuous improvement or Kaizen methodologies to enhance product quality and safety, halal certification adds an extra layer of assurance, emphasising purity and compliance with Islamic law. In return, the learnings from “Pharmaceutical Quality by Design” (QbD) led to the conceptualisation of Halal Built-In.

Pharmaceuticals certified with Halal Malaysia provide double assurance for consumers, Muslims and non-Muslims alike. Before applying for halal certification, pharmaceutical products must fulfil the registration requirements (GMP-Pharmaceuticals) of and be duly registered with the Ministry of Health Malaysia (MOH).

This dual approval process by two authoritative bodies, MOH (for Toyyiban aspects – safe, effective, high quality and hygienically processed) and JAKIM (halal aspects), offers consumers unparalleled peace of mind.

Next 50 Years: A future of continuous excellence
The Golden Jubilee of Halal Malaysia is not just a celebration of past achievements but a resounding commitment to the future that values integrity, excellence, and trust. Malaysia's legacy of halal excellence, built on a foundation of solid governance, stakeholder collaboration, and deep respect for Halalan Toyyiban principles, positions it as a beacon of halal excellence to lead the industry towards a future of sustainable and inclusive growth.

Malaysia recognises the growing importance of sustainability in the global halal market. Therefore, it has endeavoured to incorporate sustainable halal practices throughout the value chain. This includes encouraging the adoption of eco-friendly production methods, responsible ingredient sourcing, and reducing waste and emissions. By championing sustainable halal practices, Malaysia aims to create a more ethical and environmentally responsible halal industry that benefits both people and the planet.

As Malaysia continues to pioneer and innovate relentlessly, underscoring the transformative impact of Malaysia's halal certification, it will undoubtedly shape and inspire the future of the global Islamic economy, benefiting the Ummah and the world at large for decades to come.

Roziatul Akmam Osman is a halal subject matter expert and is the recipient of the Halal Malaysia industry lifetime achievement award 

Businesses have always welcomed endorsement. Someone who champions their offerings. Which is why brands and star power have historically crossed paths. Celebrities and athletes have endorsed products from food and beverages to cosmetics and household items to amplify their presence and uptake. 

But in today’s time of new-media capitalization, it is almost a matter of course for businesses to leverage the power of technology to bolster their reach. Social media has given rise to a cohort of content creators who have developed a digital presence, focus on engagement and community and have become a trusted presence within their communities, strong enough to exert a considerable 'influence' on their followers.  

This rising clout of influencers has forced businesses to return to the drawing board and pen a new marketing playbook. 

The hype is not misplaced - the global influencer marketing market size has more than trebled since 2019, increasing from $6.5 billion to an estimated $24 billion in 2024, according to data and business intelligence firm Statista. 

The halal food sector is no different. It is an evolving space, both in terms of options and uptake, and is now no longer restricted to Muslims. There has been evidence of its adoption among non-Muslims, throwing the arena wide open for halal food businesses to capture a sizeable chunk of the overall F&B ecosystem.

However, for halal food to find continuous favour among consumers, businesses must tap into the growing power of influencers, forging a personalised connect with the consumer. 

“Influencers, or rather, content creators, are crucial for halal food providers. With social media marketing dominating many brands' marketing budgets, this sector will only get bigger and more indispensable for every business in some way shape or form,” says Amena Khan, a UK-based social media influencer. 

Sealing the deal

Influencers wield considerable hold on consumers' purchasing power – a study by PR agency Matter Communications, that surveyed more than 1,000 US consumers, revealed 69% of respondents are likely to trust an influencer, friend or family recommendation over information coming directly from a brand. Food and beverage generated the most consumer interest and most potential to act on influencer content, followed by health and wellness. 

“Given how widely used social media is in this current day and age, influencers can play a vital role in a brand’s exposure and visibility to their Muslim consumers. All it takes is one image or short video of the restaurant going viral to reach a large and varied audience across the country - much quicker than any word of mouth or an online search would yield,” says Layla Hassanali, founder of Halal Girl About Town, a platform dedicated to finding the best halal restaurants in the UK. 

Influencers can help forge an alliance with the wider non-Muslim consumer base, which may struggle to recognize the benefits of halal food beyond religious context. An all-inclusive approach may also blur the social distance between Muslims and non-Muslims and help combat issues like Islamophobia. 

“To a non-Muslim, a halal restaurant might come across as having closed doors; a place that only caters to Muslims. With influencers continuing to post about halal food and growing their platform reach, they can open the doors to many non-Muslims by showing them that there is more to the restaurant/brand than just a halal certification,” adds Hassanali. 

Impact of 'choices'
Influencers help form a genuine digital interaction, offering their own seal of approval and helping draw businesses and consumers closer. But for that to happen seamlessly, influencers must develop their own credibility. Especially in a field such as halal food, which has religious threads attached to it.

Hassanali explains: “Over time, an influencer’s platform will curate a specific audience that resonate with the influencer’s own lifestyle and brand choices. Lifestyle and brand choices are more impactful if they are in line with what you stand for.”

A year in, the ongoing conflict in Israel and Gaza has had a profound impact on brands and businesses in the UK and around the world, particularly those perceived to have connections or inclinations towards Israel or Palestine. 

This article explores these impacts and the rise of alternative beverage options in the UK market. 

Effects on brands and businesses: 
Several brands have faced calls for boycotts from activists and groups supporting Palestine. This includes companies seen as supporting Israel or operating in contested territories.

Importantly, these boycotts are not limited to Muslim consumers but include a diverse range of individuals who advocate for justice and oppose occupation. 

Brands that made statements or took stances related to the conflict have also faced significant backlash on social media. This has led to reputational challenges and forced companies to reassess their public communications strategies. 

To counter rising consumer wrath, some companies have altered their marketing strategies or public relations approaches. These changes aim to avoid alienating customers or to align with public sentiment. 

In terms of bottom lines, certain sectors, especially those linked to tourism or international business, have faced and may continue to experience financial repercussions. This is due to changing consumer behaviour and increased scrutiny of companies' geopolitical stances. 

Additionally, companies operating in or sourcing from the region may need to reassess their supply chains in light of the conflict. This could lead to changes in procurement strategies and potentially affect product availability or pricing. 

Rise of alternative beverages: 
In response to boycotts of major brands like Coca-Cola and Pepsi, several alternative beverage options have gained prominence in the UK and European markets. 

Some of the generic alternative soft drinks include Karma Drinks, known for its organic soft drinks and ethical sourcing; Pop Soda, which is said to focus on craft sodas with unique flavours and natural ingredients; Lixir Drinks, which specialises in low-calorie mixers and soft drinks; and Cawston Press, which offers sparkling fruit drinks made from pressed fruit with no artificial additives. 

Some emerging 'ethnic' cola brands have emerged to cater specifically to consumers looking for alternatives to major cola brands. These include: Mecca Cola, which was launched in France in 2002, and has since gained popularity in European Muslim communities.

Then there is Zamzam Cola, an Iranian brand that has found a market in some European countries. Others include Evoca Cola, a British brand that markets itself as an ethical alternative to mainstream colas; Qibla Cola, a UK-based brand that emphasises ethical consumption; and Yo Cola, a new British brand. 

These brands often market themselves as socially conscious alternatives, appealing to consumers who are looking to align purchasing decisions with their values. 

Broader implications: 
The emergence of these alternative brands reflects a growing trend of conscious consumerism. It demonstrates how geopolitical events can significantly influence market dynamics and consumer behaviour. 

The situation also highlights the increasing importance of brand values and ethical stances in consumer decision-making. It shows the potential for niche markets to grow rapidly in response to changing societal attitudes. 

The Israel-Gaza conflict has had far-reaching effects on the UK business landscape, particularly in the beverage industry. As consumers become more aware of the geopolitical implications of their purchasing decisions, brands are forced to navigate complex ethical territories.

The rise of alternative beverage options, especially in the cola market, illustrates the market's ability to adapt to these changing consumer preferences and values. 

Naved Syed is a UK-based halal food and beverage consultant

Palestine Drinks, an alternative soft drink brand to Pepsi and Coca-Cola, was founded by a Sweden-based Palestinian family. 

The drive to create the brand was the realization of how restaurants were dominated by Western beverages with no alternative in sight. 

Today, the brand has evolved not only as an substitute to dominant Western drinks but through its choice of nomenclature and design, symbolizes its deep connect with Palestine as well as remains keen to foster a message of community. 

We speak with Mohamed Kiswani, founder of Safadfood AB, the parent company of Palestine Drinks, on the brand's evolution, the broader cause and its growth moving forward. 

Palestine Drinks was established this February in response to the crisis in Palestine. How many product cans have you sold since then?
Kiswani: We have produced and sold more than 20 million cans since March this year.

How has the overall response been?
Kiswani: The response from the market have been a lot more than we could ever [have] imagined, from across all continents and countries in the world.

Are the products available in Europe and the UK? 
Kiswani: Our products are available in ten countries across Europe, with UK as one of our largest markets.

Did you face any challenges in partnering with wholesalers or placing your products on retail shelves? 
Kiswani: No problems at all; we have been partnering with wholesalers who have contacted us [and are] interested in being a part of this movement.

It's the cause that is the main purpose wholesalers wish to join us in the Palestine Drinks project.

Does the company plan to expand to the Middle East? If yes, when?
Kiswani: We have large plans for the MENA countries, of course, as we see it as our largest markets in the future. We are hoping we will launch before the end of this year and that we have reached all countries before Ramadan 2025.

How is the brand supporting the Palestinian cause?
Kiswani: The main message is to "Never stop talking about Palestine.." and that we believe in "Liberty for everyone".

All profits of Palestine Drinks sales are going to the Safad Foundation registered in Sweden as a charity organisation with a sole purpose of donating all funds every year to the civil society in Palestine for various water, food and healthcare projects in Gaza and the West Bank.

The foundation donates to already established organisations such as Childfund, Weworld, PCRF, Doctors without borders and their aid projects.

Blockchain can a gamechanger for the traceability of halal food products, but misconceptions swirling around the technology, limited case studies and lack of regulatory endorsement remain a major hurdle

Halal food products need to fulfill stringent certification requirements is stating the obvious. However, deploying evolving solutions such as distributed ledger technology (DLT) not only helps streamline the entire value chain but enhances transparency, too. 

Blockchain-based traceability streamlines processes and offers cost efficiencies. It also provides a much-needed layer of trust for Muslim consumers and importers. This is especially important considering that food fraud costs between $10 billion and $40 billion to the global industry each year, according to the US Food and Drug Administration. 

The halal food supply chain is not immune to fraud challenges - seven halal meat outlets in the Canadian city of Calgary were forced to close in April as federal police investigated unlawful livestock dealing and illegal slaughter operations.

It’s no surprise then that food traceability is proving to be one of blockchain’s most powerful applications. 

By providing a tamper-proof record of each movement within the supply chain, blockchain solutions can verify a product’s entire journey, from farm to fork. Such enhanced traceability can reduce the risk of halal certificate fraud whilst helping food manufacturers and retailers avoid expensive product recalls.

Promoting halal trade

One of the earliest examples of blockchain usage for halal food traceability came from Switzerland-Singapore-based OneAgrix in December 2022, when it demonstrated the journey of Hill Farm Finest beef from their farm in Bedfordshire, UK, all the way to the distributor Longino & Cardenal in the UAE, and later to the restaurant IL Borro in Dubai.

Since then, several tech firms have launched blockchain-powered solutions to strengthen halal food traceability. These include UK-based blockchain specialist iov42, which partnered with Cardiff-based Prime Certification in 2023 to create a data-sharing platform to address challenges around halal meat traceability.

The project - funded by the government of Wales through Blockchain Connected, a network for the blockchain community in Wales - contributed to the development of iov42’s traceability solution Interu. Launched in February 2024, the platform enables all traceability efforts, including certification, to be logged and shared with those who request to see due diligence. 

“Through this partnership, we've engaged in promising discussions with Welsh Government officials, whose goals are to explore and support substantial trade and investment opportunities between Welsh industries and the Middle East and North Africa region,” Anna Roberts, head of market development at iov42 told Salaam Gateway.

For Wales, red meat production is a cornerstone of agricultural output, with lamb alone accounting for £170 million in exports annually. Government data reveals a 301% surge in UK lamb exports to the Middle East between 2018 and 2019. Promising volumes have ensured solutions that bolster trust in traded goods become increasingly mainstream.

Moreover, iov42 and Prime Certification’s halal traceability project has sparked unexpected interest from the banking sector, according to Roberts.

“Institutions such as Thai Islamic Bank and Lloyds Bank have shown curiosity about how third-party verification (provided by Prime Certification) combined with our DLT platform could support high-volume halal product transactions in the Middle East, marking a new dimension of engagement beyond our original scope.”

Norway-based Unisot has also seen a positive response to its new blockchain supply-chain solution. The enterprise blockchain service provider launched HalalOnChain last October at GITEX Global Dubai to boost transparency across different halal sectors.

“We’re currently engaged in discussions with several partners and stakeholders across various segments of the halal food industry. These partners recognize the importance of building consumer trust by providing verifiable information about the halal status of their products,” Stephan Nilsson, CEO and co-founder of Unisot told Salaam Gateway.

“The openness to collaboration signals a growing awareness of the value that the public enterprise blockchain can bring in ensuring that halal standards are met consistently throughout the supply chain. These ongoing discussions are promising and could lead to more concrete partnerships in the near future.”

Slow uptake

While the halal food industry has shown interest in the potential of blockchain technology for product traceability, implementation remains in its early stages. 

“It is not as advanced as other supply chain industries – such as timber and coffee traceability - perhaps because halal traceability is more a consumer demand than it is business orientated, and you don't necessarily have the force of one or two big players in the market to create the change,” said Roberts.

Indeed, several factors are slowing down widespread adoption. One of the major hurdles is the misconception surrounding what blockchain technology truly entails.

According to Nilsson, several proof-of-concept (PoC) projects have been initiated in recent years to explore how blockchain can ensure traceability from farm to fork. However, a lot of these projects have used the term 'blockchain' loosely, and in some cases, the technology was disingenuous: not true blockchain, rather centralized systems marketed as such.

“Genuine blockchain adoption has been slower because many stakeholders have been misled by eager tech companies wanting to sell their own invented ‘blockchain’ technology and have faced challenges in complexity and costs,” said Nilsson.

He adds that many companies and stakeholders mistakenly equate centralized systems with blockchain, leading to failed PoCs that deliver underwhelming results. 

“This confusion is compounded by the misperception that blockchain solutions are overly complicated, underperforming, and expensive, which has caused hesitation among stakeholders in fully embracing the technology.”

These hurdles have led to a lack of scalability, data integrity, and true transparency, as well as unnecessary complexity and high costs for participating companies, he added. 

Accelerating adoption

Despite challenges, there are clear drivers for the adoption of blockchain across the halal food industry.

For example, credible producers who want to prove the authenticity and integrity of their halal products see blockchain as a valuable tool to establish greater trust with their consumers.

“Currently, those leading the way in adopting blockchain solutions for traceability tend to be the new generation of young, well-educated company leaders taking charge of their long-time family businesses - producers committed to offering verifiable quality products to their customers,” said Nilsson.

Additionally, consumers are becoming more conscious of the products they purchase, seeking greater assurance that the food they consume is genuinely halal, he says.

These two forces - producers eager to prove their claims and consumers demanding more transparency - are likely to fuel blockchain adoption in the future.

Other elements need to come into play, too, to encourage greater adoption of the technology. Education stands as the foremost task.

“Stakeholders across the halal food supply chain - from producers to certifiers to retailers - need a better understanding of how the public enterprise blockchain works, its benefits, and how it differs from centralized or pseudo-blockchain systems,” said Nilsson.

“Clarifying misconceptions surrounding blockchain will help more companies see the value in adopting solutions that can ensure transparency and trust throughout the supply chain.”

Roberts adds that resolving any misplaced fears around blockchain, mainly related to issues of privacy, would assure organizations how this technology could be used to support global trade whilst protecting commercially sensitive information.

Furthermore, successful case studies and demonstrations of blockchain’s effectiveness in other industries can also help alleviate concerns and showcase the potential for halal food traceability.  

“When stakeholders see clear examples of the public enterprise blockchain improving transparency and efficiency, reducing fraud, and enhancing consumer trust in similar contexts, they will be more likely to explore adoption,” said Nilsson.

The involvement of regulatory bodies and halal certification authorities is also essential, he added.

These institutions play a key role in ensuring the integrity of halal products, and if they endorse or require blockchain-based traceability systems, it could significantly accelerate adoption.

Regulations in other industries, often relating to the EU Green Deal, have already brought about a shift in approach to traceability, according to Roberts. In doing so, they have created the need for technologies like blockchain to help handle the volume of data as well as introduce accountability, transparency, and integrity.

The European Green Deal, approved in 2020, is a set of policy initiatives to transform the EU into a resource-efficient and competitive economy as well as help achieve its 2050 climate neutrality goal.

On balance, increased awareness, implementation and regulatory support will ensure increased adoption of blockchain for product traceability. This will receive a further impetus by rising consumer demand for verifiable halal products, coercing stakeholders to adopt innovative solutions to remain relevant. 

Muslims around the world form a growing cohort of travellers, making up for a considerable portion of the global traveller base. 

Key factors such as rising wealth and disposable income, and a spirited Gen Z tourist base is propelling Muslim travel, prompting airlines to court this promising passenger segment. This includes respecting their religious obligations. 

Muslim-majority countries

Travellers, for the most part, assume that on-board Muslim meals served by airlines operating out of Muslim-majority countries would be halal.

But the key question remains: Are they halal-certified? 

Dubai-based Emirates says on its website that all of its meals are ‘halal-certified’. Etihad Airways, headquartered in the neighbouring emirate of Abu Dhabi, says all food served on board is prepared ‘in strict compliance with halal regulations and is suitable for Muslims’. In Qatar, the national carrier also states that all meals are ‘halal’. 

“Flight meals that are prepared in compliance with halal guidelines are not necessarily halal-certified. They may or may not have the requisite certifications. However, various [regional] airlines do offer meals that are halal certified, like Emirates, Etihad Airways, Qatar Airways, Saudia and Oman Air," Zeeshan Abdul Aziz, CEO of International Halal Certification told Salaam Gateway. 

Bahrain’s Gulf Air offered an assurance on its website, stating that there remains no need to request for a Muslim meal as all food served on airline-operated flights is ‘halal’. 

Halal certification is the process through which an independent entity supervises and verifies a product, attesting that it was produced in conformity with Islamic laws. The certification is typically granted by Islamic certification bodies or organizations that have the expertise to assess and confirm the halal conformity of products. 

Outside of the GCC region, Malaysia Airlines, one of Asia’s largest carriers, notes that all meals served on board are halal-certified and prepared in strict compliance to halal requirements. 

“However, if you are a Muslim passenger flying with one of our codeshare partners, you are advised to request for Muslim meals,” the airline states on its website. 

Turkish Airlines states that there is no need to create a demand for Muslim food because the meals served on its flights are prepared according to Islamic methods.

“Several airlines claim that they prepare products in compliance with halal regulations, though they are not halal-certified. Like Turkish Airlines ensures it does not handle pork in the same facility,” said Abdul Aziz. 

Non-Muslim countries 

Singapore Airlines’ Muslim meal served on board its flights is prepared without the use of pork, lard or alcohol, and the ingredients used are sourced from halal-certified suppliers, a Singapore Airlines spokesperson told Salaam Gateway. 

“The meals are not halal-certified as the serviceware used are not separated for various types of meals available on board,” the spokesperson added. 

Hong-Kong headquartered Cathay Pacific states that its Muslim meal contains no pork and pig by-products, gelatine, non-halal fish from species without scales or fins, alcohol and flavouring extracts with alcohol. 

However, ‘all meals on flights to and from Bangladesh, Indonesia, Malaysia and [the] Middle East are prepared according to the halal method’, the airline said on its website. 

Moving towards Europe, all meat and poultry products used in the preparation of a Muslim meal on Lufthansa-operated flights are certified as slaughtered according to halal guidelines. No pork or game is used, as well as no alcohol. 

UK’s flag carrier British Airways states that its halal meal is prepared in accordance with halal guidelines.

“It uses halal meat and does not contain pork, alcohol or derivatives of these products,” it said. But the airline offers no information on whether the meals are halal-certified or not. 

But why is certification so important? One of the major advantages is that a growing number of Muslims travellers who are looking for halal-certified meals on flights feel more satisfied when they are served such food, explained Abdul Aziz.  

Monique Naval, senior research analyst at Euromonitor International added that people are more conscious than ever about where their food comes from, and Muslim consumers are no exception. 

“Islamic beliefs dictate Muslims’ dining preferences, and they are ethically conscious regarding halal accreditation; halal certification provides assurance that they adhere to Islamic laws. As such, offering halal-certified food on flights allows airlines to build rapport among Muslim travellers and boost consumer confidence,” she said. 

In the ascendant
Muslims form a sizeable chunk of the global traveller base, with Muslim international arrivals expected to reach between 164 to 168 million this year, exceeding pre-pandemic levels by as much as 3-5%, the Mastercard-CrescentRating Global Muslim Travel Index 2024 stated. 

“This growth trend is expected to continue, with projections showing that Muslim international arrivals could reach 230 million by 2028, accompanied by an estimated expenditure of $225 billion,” the report suggested. 

The projections illustrate the segment’s rising prominence, propelled by technological advancements, economic growth and tourism development. 

"Halal remains under the spotlight as companies, including airlines, race to benefit from a pool of untapped consumers. Halal labelling provides assurance and a display of dedication to consumers,” said Naval. 

For all the benefits surrounding halal certification, there are several issues impeding the process. 

"Airlines prepare different types of meals depending on the regions they serve, hence there are hundreds of ingredients that are used. This makes the certification process more complex and detailed. Airlines have to source ingredients from different suppliers from all over the world, so to ensure the halal supply chain of each raw material is a big challenge," said Abdul Aziz. 

Indonesia is five months away from welcoming defence minister - Prabowo Subianto - as its next president.

President-elect Subianto will succeed incumbent Joko Widodo in October. 

From an Islamic economy standpoint, how will the baton of the Sharia economic & finance national agenda be handed over to the next government?

The transition has, so far, been managed smoothly between the current and upcoming government, says Sutan Emir Hidayat, Sharia ecosystem infrastructure director at the National Sharia Economy and Finance Committee or KNEKS.  

Gauging from the communication conducted with the upcoming president’s Shariah economy teams, there is clear intent to strengthen KNEKS to become an independent entity. 

KNEKS operates under the ministry of finance. 

“They have shown strong commitment to continue what we have achieved. There were discussions regarding KNEKS and its transformation into an independent body, its pros and cons,” Hidayat told Salaam Gateway.

At the moment, KNEKS consist of 16 members, including three coordinating ministries; eight ministries – finance, religious affairs, industry, trade, cooperative & SME, state-owned enterprises (SOE), tourism & creative economy, national development plan - and three institutions as well as the Indonesian chamber of commerce and the Indonesia Ulema Council (MUI). 

KNEKS has regional representative offices in almost all provinces across Indonesia except nine, including Papua Island, Bali Island, Nusa Tenggara Timur and Maluku, where majority of its residents are non-Muslims. 

Hidayat added that the Sharia economy and finance agenda is already a part of the National Long Term Development Plan (RPJPN) 2025-2045 and its derivative - the five-year medium term development plan (RJPMN) 2025-2029.

The medium development plan outlines more detailed performance indicators about the Sharia economy masterplan (MEKSI). 

“We are currently completing the MEKSI document and have welcomed governors from regions to explicitly include Sharia economy and finance agenda in their regional development plans with sustainability and continuity. We have asked provinces such as West Kalimantan, Riau, Gorontalo and they have shown enthusiasm so far,” says Hidayat.

The new Sharia economy masterplan, according to Hidayat, is a refinement of MEKSI 2019-2024 and has 13 priority programs. 

“We have worked on these priority programs, but they are very basic and still have gaps. To be more comprehensive, they must be developed further. The new MEKSI will be in line with the five-year medium development plan that is being drafted and it will be used to support the vision of Indonesia’s 2045 social economic transformation,” he emphasises.

The Sharia economy and finance agenda is also included in the 2025 state budget which specifically outlines performance indicators for ministries and institutions that are KNEKS members.

Hidayat hopes the new government, consisting of Subianto and vice-president Gibran Rakabuming Raka, finds new sources of growth. 

Meanwhile, Rezza Artha, a team member of the upcoming government, says the new vice president himself is strongly committed to advancing the Islamic economy through several policies such as training and upskilling professionals in the Islamic banking sector, improving the quality of halal tourism, and the overall halal industry in Indonesia.

During the electoral campaign, the president and vice president issued a vision and mission document, which outlined how the new government will use the Islamic economy as an engine of growth, encouraging Indonesia to become a center of the global halal economy through strengthening its Islamic financial institutions, expanding the ecosystem, education and research, as well as optimizing the utilization of social funds (zakat, sadaqah, waqf, etc.).

“The document also stated that they will establish a Waqf Bank as an economic driver based on the Sharia economy on the basis of academic, thorough study, and comprehensive feasibility tests as well as the preparation of laws and regulations related to the Waqf Bank,” says Artha.

Other initiatives include strengthening state-owned enterprises and the private sector that conduct businesses or offer services across the Islamic economy.

“Prabowo-Gibran clearly stated in their Asta Cita (vision and mission document) that the Islamic economy is a sector they will develop if they received the mandate to run the government in the future,” he adds.

Key challenges
Hidayat admits that not all of the 13 priority programs of the Sharia masterplan ran smoothly during the last five years, the delay of the mandatory halal certifications being one. 

Last month, the country’s coordinating minister for economic affairs, Airlangga Hartarto, announced that the government has postponed the mandatory halal certification of products until 2026, particularly for micro and small enterprises. Micro enterprises are companies whose annual sales are in the range of around $62,586 to $125,295. Sales of small enterprises reach approximately $939,718 per year.

The policy has been postponed for food and beverage products as well as those in the traditional, herbal, and other medicines. The mandate also applies on cosmetics and chemical products, accessories, household goods, and medical device categories.

The original October 2024 deadline for the certification policy will continue to be applicable on medium and large enterprises. 

"We had aimed that by 2024 there would be 10 million halal-certified MSME products, but only 4.4 million have secured certifications so far. On that basis and perhaps due to lack of education and awareness, we require a big budget since the Halal Product Assurance Agency (BPJPH) and KNEKS alone are not enough for a country as big as Indonesia. That’s why the regulation was postponed for two years. I know we have a risk of reputation following this setback. But it is in the best interest of MSMEs,” says Hidayat. 

LPPOM director Muti Arintawati said many stakeholders will feel a sense of relief. Recognizing the vast number of businesses and the limited time until October this year, she acknowledged the challenges MSMEs would face in meeting the deadline. 

However, she cautions that this extension should not encourage complacency. Intermediate programs and strict targets must be established to ensure businesses do not delay the certification. 

“The attention should not be solely on the business scale within the MSME sector. The focus should be put on businesses supplying critical materials used in other industries, regardless of whether they are MSMEs or not. This is because the supply of food and beverage-related materials and services involves both large/medium and small/micro businesses," said Arintawati.

For example, meat availability from animal/poultry slaughterhouses is crucial, as meat and its derivatives are used in various culinary products. Extension of such MSMEs in the halal supply chain would hamper the availability of halal meat, hindering halal certification of businesses using meat. Several MSMEs offer repackaged products for spices and baking ingredients as well as operate services related to food and beverage.

Therefore, LPPOM urges the government to focus on solving halal issues in the upstream sector first. 

"Ensuring the availability of halal materials and services will make it easier for MSMEs to produce halal food and beverage end products. It's like a domino effect. If upstream issues are resolved, most halal product issues in Indonesia will also be resolved. The halal certification process will be easier, and the halal guarantee can be more accountable," said Arintawati.

Ramadan is a period of reflection not only for individuals but for businesses as well. 

Not only is there a sense of empathy among individuals during the holy month but companies also look to avail this period to give back to the community through sponsorship of Iftar meals and volunteer initiatives. 

Meal donations during Ramadan have particularly become a tradition among corporates in the Middle East.

For instance, the Saudi Food Bank (Et’aam) collaborated with several companies this Ramadan through its ‘Iftar fast-breaking program’. These included Kiri, a prominent brand of global cheese powerhouse Bel Group, with whom it distributed 20,000 Iftar meals to individuals across the Saudi city of Jeddah.

Amazon Saudi Arabia also expanded its collaboration with Eta’am during the holy month, leveraging its logistics network to distribute hundreds of thousands of meals as part of its ‘Ramadan Al-Khair’ program. The initiative enabled Amazon customers in the kingdom to purchase a Ramadan food basket online and donate essential groceries such as oil, sugar, and flour to those in need. 

In a massive meal donation drive in the UAE, Dubai-headquartered Islamic insurance provider Watania partnered with the Emirates Red Crescent to distribute over 15,000 Iftar meals, and with local NGO Model Service Society to sponsor 1,250 Iftar meals for labor camps. These efforts saw Watania’s staff volunteers contribute more than 50 hours of their personal time.

"Our Ramadan initiatives are a testament to our dedication to social empowerment and community solidarity. It is through such engagements that we can truly make a difference, fostering a culture of empathy and unity that resonates throughout the year,” Mufti Aziz, vice president for Shari’ah at Watania told Salaam Gateway.

Elsewhere in the region, Orange Jordan donated food parcels and Iftar meals to several humanitarian organizations during Ramadan, such as the Jordan Hashemite Charity Organization, food security NGO Tkiyet Um Ali, and King Hussein Cancer Center. The telecom operator also collaborated with Amman-based Haya Cultural Center to sponsor Iftar for 100 children.

Meanwhile, hotel establishments in the UAE embodied the spirit by giving back to the community in thoughtful ways. 

An example is Media One Hotel, which installed a Ramadan-sharing fridge at its Dubai Media City location for the fifth consecutive year. The fridge was stocked by the hotel and the surrounding community to help blue-collar workers break their fast after a day of hard work.

Lina Yousif, head of people and culture at Media One Hotel said that the initiative has allowed the hotel to make a positive impact on the local community and provided its team members with a meaningful opportunity to volunteer and be a part of something larger than themselves.

The fridge benefitted more than 7,000 people during Ramadan, almost double the initial projections. 

“The response has been amazing. Over 25 companies within our community along with a dozen individuals have stepped up to support us with the sponsoring of the fridge items. We've also had over 20 individuals from our neighboring community come and join us for the distribution before Iftar timing,” said Yousif.

In Egypt’s capital city, Pyramisa Hotel Cairo showed its generosity in a different way, hosting a group of young patients from the Children's Cancer Hospital Egypt for an Iftar gathering. The event was more than just a meal as the hotel’s hospitality team connected with the children and gave them gifts. 

Meanwhile, many hotels made use of their kitchens to cook up Iftar meals for those in need. Among them were Hilton Group, which donated more than 8,000 Iftar meals to the UAE Food Bank through 30 of its properties, and Coral Beach Resort Sharjah and Bahi Ajman Palace Hotel, which together delivered 600 Iftar meals.

Other hospitality groups saw their staff venture into the streets to distribute Iftar meals to hardworking taxi drivers, a humble gesture of appreciation that sought to build stronger connections within the community. These included a few UAE establishments as well as The Westin and Le Meridien City Centre in Bahrain, Renaissance Cairo and Le Meridien Cairo Airport in Egypt.

Another initiative saw Dubai-based foodservice distributor Chef Middle East collaborate with the UAE Food Bank as well as Oman Food Bank, Mandarin Oriental, and Qatari food waste management specialist Wa’hab to donate 1,000 Iftar meals to those in need across the region.

Beyond hospitality groups, digital platforms such as multi-service app Careem, and online food ordering companies Talabat and Deliveroo, have all launched features to encourage customers to donate money during their purchases in Ramadan.

Talabat went a step further by donating one million Iftar meals this Ramadan towards the World Food Programme’s emergency response in Gaza, Palestine, which aimed to distribute the meals to 33,000 displaced people, mostly women and children.