Halal Industry

First of Indonesia’s halal industrial zones pulls in $100 million in investments - official

JAKARTA – Bintan Inti, a halal industrial zone on the Riau Islands is now effectively operational after two tenants invested more than $100 million into their operations there.

An hour ferry ride from Singapore, Bintan Inti is the first of three licensed halal industrial estates in Indonesia to become operational. Safe N Lock in Sidoarjo and Modern Cikande in Banten are the other two.

PT. Bionesia Organic Foods that produces coconut products and its derivatives and PT Indo Gemilang Coconut Lestari that manufactures coco peat have both established their factories at Bintan Inti and are now preparing to export their products to Europe.

“They have already established factories and all of their products will be 100% exported to Europe, the total investment of both companies is more than $100 million,” Afdhal Aliasar, director of halal product industry at the National Sharia Economy and Finance Committee (KNEKS) told Salaam Gateway.

The official said that other ministries are expected to support the industrial estate in terms of infrastructure as well as tax facilities. For instance, Bintan currently needs an adequate and stable gas supply through the undersea gas pipes connected to its neighboring island Batam. 

KNEKS also expects Islamic financial institutions to step up funding for the development of the industrial estate’s infrastructure.

“We might need to develop more Shariah capital market instruments to fund the infrastructure facilities in Bintan. In addition, tax facility-wise, we might also need to expand our global trade agreement with countries that become our market, such as strengthening the tax treaty to tackle issues such as import duty to those countries,” said Afdhal.

The Ministry of Industry supports the Bintan estate via the Halal Product Assurance System (JPH System), including conducting training for businesses on working with raw materials, sales and marketing for local and global markets, and providing halal inspections and halal product certificates within the industrial zone. 

Apart from the three licensed halal industrial estates, KNEKS expects a couple more, in West Nusa Tenggara, to be registered with the Ministry of Industry.

Indonesia is keen to develop more halal industrial estates to achieve its aim of becoming a global halal product hub. Neighbor Malaysia has around 14 halal industrial parks and is one of the world’s largest players in the halal-certified food and beverages sector.

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