Kemenperin Supporting the Development of the Cikande Modern Halal Valley

JAKARTA – The Industry Ministry (Kemenperin) is pushing for the construction of a special industrial zone dedicated to halal product production to help create an integrated supply chain that will ease upstreaming efforts for halal products and to increase their competitiveness.

Therefore, the Kemenperin is supporting the notion that the Cikande Modern Industrial Zone (KI Cikande) in Banten will be developed as a halal industry zone, under the name of the Cikande Modern Halal Valley. The Cikande zone has been managed by PT Modern Industrial Estate since 1991 and is 3,175 hectares large.

Industry Minister Agus Gumiwang Kartasasmita hopes that with a specialized halal industry zone in place, it would help develop a specific supply chain strategy known as a ‘Halal Traceability System’.

“Through that strategy, Indonesia will be able to accelerate the development of its Syariah economy,” Minister Agus said in a written statement in Jakarta on Friday (19/3).

Adding to that, the Kemenperin’s director general for the security, zonation and international industry access (KPAII) Eko S. A. Cahyanto said that this planned halal industry zone will become Indonesia’s first and largest, with a projected size of 500 hectares.

The Modern Halal Valley will include a halal integrated supply chain, a standard factory building, industrial land and a logistical park. Small halal-industries and businesses in the local area will be accommodated and will play a supporting role in supplying raw production materials.

“We are hoping to use the KI Modern Cikande as a pilot project to invest in potential tenants who are able to produce halal products and who can potentially become role models for all halal industry zones in Indonesia that have secured large domestic markets,” Eko explained. 

The government will also provide incentives, both fiscal and non-fiscal, to help attract investors to such zones. All industrial zones in Indonesia have the same potential to receive such incentives if they have the required documents. For example, the Modern Halal Valley is the first halal industry zone in Indonesia to receive an official Halal Industry certificate, on 2 September 2020.

All the services inside the Modern Halal Valley will be connected through a one-stop service, from its operational systems to its supporting facilities such as a human resource ‘halal center’, laboratory and a halal inspection facility. It will also provide adequate road infrastructure and drainage.

The industries housed in the zone are those that produce halal foods, pharmaceuticals, and cosmetics. KI Cikande currently has 190 tenants and employs up to 57,000 workers.

The Modern Halal Valley has signed partnership memorandums with several international halal zones such as the Cordoba Halal Park in Spain and the Iskandar Halal Park and Penang International Halal Hub in Malaysia to help develop the supply chain and foster innovation.

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