THE INFLUENCE OF THE HALAL INDUSTRY ON INDONESIA'S GDP GROWTH
Keywords:
Halal Industry; Economic Growth; Gross Domestic Product; Halal Value Chain; Indonesia.Abstract
The halal industry has emerged as one of the strategic sectors contributing to Indonesia’s economic development, supported by the country’s large Muslim population and expanding halal ecosystem. This study examines the influence of the halal industry on Indonesia’s Gross Domestic Product (GDP) growth using a quantitative approach. The research employs time-series analysis with the Autoregressive Distributed Lag (ARDL) and Vector Error Correction Model (VECM) to examine both short-run and long-run relationships. Data are drawn from official sources including BPS, Bank Indonesia, and the Financial Services Authority (OJK) covering relevant periods. The findings indicate a positive and statistically significant long-run relationship between halal industry development and GDP growth, with cointegration confirmed through bounds testing. The halal industry contributes through increased production, the strengthening of the halal value chain (production, logistics, certification, and distribution), and multiplier effects across sectors such as halal food, tourism, modest fashion, pharmaceuticals, and Islamic finance. Halal certification enhances competitiveness and export growth. This study concludes that the halal industry plays a significant structural role in promoting sustainable GDP growth in Indonesia by fostering inclusive economic development and industrial resilience. Strengthening regulatory support, infrastructure, and cross-sector collaboration is essential.
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