Indonesia’s Pelindo II to set up Halal HubIndonesia’s Pelindo II to set up Halal Hub

A halal hub is a transit area that ensures incoming and outgoing products from a port are handled in compliance with sharia standards. For example, it will separate goods with pork-based products and alcohol that are forbidden in Islam. The hub is an integration of a halal port and halal trade zone (warehouse and Muslim fashion hub) as well as halal logistics and halal supply chain management. The hub will also function as a transit area for products from non-Muslim countries bound to Muslim-majority countries.

"This is a breakthrough for Indonesia. We expect products from the Middle East, Malaysia sent to Indonesia to be managed according to sharia standards," Pelindo II president director Elvyn Masasya was quoted as saying.

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 rn in value by 2020, from just $1.5trn in 2014.

Elvyn declined to disclose the costs for the new facility, saying that the project is still at a 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 port part of the hub will have a 6,840 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).

Pelindo II unit PT Multi Terminal Indonesia (MTI) had previously signed a cooperation agreement with the Indonesian Ulema Council (MUI) in early 2016 to develop a halal port in Tanjung Priok, North Jakarta.

Malaysia's Port Klang and Penang Port already have well-established halal facilities and the up and coming port on the east coast, Kuantan Port along with its accompanying industrial park is also angling to get into the market.