A so-called Halal Hub will soon be opened at the Tanjung Priok port as a transit area for halal products, run according to halal standards. (Antara Photo/M. Agung Rajasa)

Halal Zone to Be Opened in Tanjung Priok and Pulo Gadung

BY :TABITA DIELA

AUGUST 03, 2016

Jakarta. Indonesia's state-owned port operator Pelabuhan Indonesia II has signed an agreement with industrial complex operator Jakarta Industrial Estate Pulogadung on Tuesday (02/08) to develop a so-called Halal Hub, tapping into growing demand for sharia-compliant storage facility and an expanding Islamic economy.

The hub aims to provide a supply chain management that complies with halal standards, separating goods from pork-based products and alcohol that are forbidden in Islam.

"Containers or goods entering [the hub] will be processed based on sharia [standards]," Elvyn G. Masassya, port operator Pelabuhan Indonesia II (IPC) president director, told reporters at the 12th World Islamic Economic Forum.

The Halal Hub is expected to help Indonesia get a bigger slice of the burgeoning global halal market pie. A State of the Global Islamic Economy 2015-2016 report estimated the market for halal foods, fashion products, pharmaceuticals and cosmetics is set to reach $2.1 trillion in value by 2020, from just $1.5 trillion in 2014. 

"This is a breakthrough in Indonesia. Goods from the Middle East and Malaysia entering Indonesia can now be processed according to sharia standards," he said. The Halal Hub will also function as a transit area for products from non-Muslim countries bound to Muslim-majority countries.

Elvyn refused to disclose the costs for the new facility, saying that the project is still in very early stage.

The actual hub will consist of a specialized port in Tanjung Priok, North Jakarta, and a storage facility in the industrial area of Pulo Gadung, also in North Jakarta.

The halal port will have a 6,840-square meter (sqm) warehouse, a 24,000 sqm container yard and a 3,344-ton cold storage facility. All facilities in the port will be run according to halal standards approved by the Indonesian Council of Ulema (MUI).

"The halal zone can be a storefront for showcasing halal products," Pulogadung estate's finance director, Sitta Rosdaniah, said in a statement.

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