Indonesia leads global modest fashion market amid halal economy growth

Indonesia is positioning itself as a major player in the global halal economy, specifically leading the world in the modest fashion sector. According to Minister of Industry Agus Gumiwang Kartasasmita, the global halal market is projected to grow from $2.6 trillion in 2024 to $3.56 trillion by 2029.

Indonesia currently ranks fourth in the global halal industry ecosystem, following Malaysia, the United Arab Emirates, and Saudi Arabia. The nation holds the top global position in modest fashion with a score of 113.9 and has seen its halal food sector rise to third place globally. To capitalize on this, the Ministry of Creative Economy is utilizing halal certification as a strategic tool to increase the brand value and export potential of Indonesian creative products, particularly in the culinary and fashion subsectors.

The fashion industry remains a significant driver of the national economy, contributing $5.85 billion to creative economy exports and accounting for 14.77% of the creative economy's GDP. Government efforts are focused on accelerating cross-ministerial synergy to ensure the effective implementation of mandatory halal regulations by October 2026.