Surabaya, East Java (ANTARA) - The Ministry of Foreign Affairs is promoting the Sidoarjo Halal Industrial Zone (KIH) to investors in support of Indonesia's goal of becoming a global halal hub.
"We are promoting the Halal Special Economic Zone in Sidoarjo. We also have similar facilities in Banten and Riau," the ministry's Expert Staff for Economic Diplomacy, Dindin Wahyudin, said at the "Halal Indonesia Goes Regional: Dialogue on Market Expansion for the Indonesian Halal Industrial Zone" in Surabaya on Tuesday (August 26).
The Indonesian KIH is designated for industries producing halal products based on Islamic law, supported by infrastructure and facilities to guarantee halal integrity from upstream to downstream, he explained.
According to Wahyudin, the government is intensifying KIH development through infrastructure projects such as halal laboratories and halal logistics centers.
Standardization efforts are also underway through the establishment of a comprehensive halal product assurance system (JPH) to ensure all products meet halal standards, he added.
Furthermore, the government is inviting collaboration to formulate a national strategy for halal industry development, Wahyudin remarked.
Indonesia is currently developing several KIHs, including the Modern Halal Valley in Cikande, Banten; the Halal Industrial Park in Sidoarjo, East Java; and the Bintan Inti Halal Hub in the Riau Islands.
Wahyudin said that diplomatic promotion of KIHs aims to attract both foreign direct investment (FDI) and outbound investment.
"Outbound investment means exporting our halal products abroad," he explained.
So far, the Sidoarjo KIH has received investment interest from several countries, including South Korea, Malaysia, and Japan.
"If investment is directed toward the Special Economic Zone (SEZ), it goes through the Investment Coordinating Board (BKPM). But there is also a special agency within the Ministry of Economic Affairs," he noted.
He added that tax incentives such as tax holidays and tax allowances make SEZs attractive for investors.
"The main point of an SEZ is tax reduction, which makes it more appealing than investing in non-SEZ areas," he concluded.
