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Highlights: Vice President Ma’ruf Amin of Indonesia recently met with Shanghai Mayor Gong Zheng to encourage Shanghai businesses to invest in Indonesia’s lucrative halal industry, which is estimated to be worth $135 billion. Indonesia, as the world’s largest Muslim-majority country, holds significant potential in this sector, with a projected growth rate of 4.5% to 5.3% in 2023, encompassing halal food and beverages, modest fashion, and Muslim-friendly tourism.

Gong Zheng expressed interest in discussing this opportunity with the Commerce Commission. According to the 2021/2022 Indonesia Halal Markets Report, domestic spending on halal products and services in Indonesia reached $184 billion in 2020 and is expected to reach $281.6 billion by 2025, making Indonesia the world’s largest halal consumer market. The largest spending sector within the halal economy is food and beverages, with Muslims in Indonesia spending $135 billion on these products in 2020.

It’s worth noting that China was Indonesia’s second-largest foreign investor in 2022, with investments totaling approximately $8.2 billion, following Singapore’s investment of $13.3 billion during the same period. This potential collaboration between Indonesia and Shanghai could further boost economic ties between the two countries.