[Next FTA] 6: Shin Donghee, Jakarta Office Chief, "Halal Is a Food Culture That Transcends Religion... Target Millennials and Gen Z Through Online Platforms"

Korean government and aT step up efforts to address mandatory halal certification
Local businesses also target halal consumers with K-Food
Boost K-Food consumption through Indonesian online platforms and pursue "economies of scale"

"Indonesia is the world's fourth most populous country and the largest halal market, with Muslims making up 87% of its population. Religion is so important there that it is listed on residents' identity cards. The mandatory halal certification policy is not simply a religious policy; it is part of Indonesians' food culture."

On October 19, two days after the Indonesian government decided to extend the implementation period by two years, just one day before mandatory halal certification was due to take effect on October 18, Shin Donghee, head of the Jakarta office of the Korea Agro-Fisheries & Food Trade Corporation (aT), explained the significance of the requirement in these terms.

◆ Korean government and aT step up efforts to address mandatory halal certification = In 2024, the Indonesian government announced the "Law on Halal Product Assurance" and introduced mandatory halal certification, but gave local small and medium-sized enterprises and imported food products until October 17 of last month to comply. The requirement was due to take effect on October 18, but its implementation was postponed by another two years. Shin said, "The Indonesian government had initially required halal inspection bodies to conduct halal compliance inspections locally before shipment for products subject to halal rules. But details such as inspection costs were not clearly communicated, and the system was eventually canceled. The mandatory halal certification requirement was likewise postponed on the grounds that Indonesian small and medium-sized businesses were not ready."

Shin said thorough preparation was necessary regardless of the delay in implementing mandatory halal certification. "Indonesia has an overwhelmingly large Muslim population, so 'halal' is a key consideration for consumers," he said. "The Korean government previously concluded the first mutual recognition agreement with Korean halal certification bodies (KMF and KHA), and has promoted K-Halal through online and in-person seminars and large-scale events." According to aT, as of October 2024, exports of processed food products requiring halal certification to Indonesia, among all export items, totaled $113 million, based on companies that consented to the provision of information. Exports by companies that had obtained halal certification totaled $107 million, or about 95% of the total.

◆ Local businesses also target halal consumers with K-Food = As K-Food gains popularity in Indonesia, local convenience store chains promoting themselves as "Korean convenience stores" have also emerged. Convenience stores in Indonesia also serve as financial service counters. Young Indonesians are a generation that has adopted mobile payments directly, without going through internet banking. They use prepaid cards without bank accounts, and convenience stores serve as financial outlets for them as well. This is why they are considered an important distribution channel.

In 2024, K3 Mart, a local Indonesian retailer, opened a Korean-style convenience store specializing in Korean K-Food. Its flagship store, the Lippo Mall Puri branch, was listed in the Indonesian World Records Museum (MURI) as the retailer with the largest ramen stock in Indonesia, with 125,000 packs, when it opened in 2024. Kim Giyeok, a director of K3 Mart and the only Korean among its management, said, "More than 30% of K3 Mart's products are K-Food. Ramen accounts for about 18% of sales, and K-Ramen makes up 40 of our 250 ramen varieties but accounts for more than 60% of sales. When the convenience store opened, the area was a dead zone, with all the surrounding shops vacant. But the number of customers has grown, with as many as 3,000 people visiting the K3 convenience store on weekends alone. Now all the retail spaces are occupied, including by Korean restaurants."

Customers at K3 convenience stores can buy ramen and cook it there to eat. Jaja Farsha, a 20-year-old university student who was wearing a hijab and eating Korean stir-fried noodles at the store that day, said, "I usually eat K-Ramen once or twice a month, and I heard there was a place near my school where I could cook it myself, so I came here. I liked being able to try ramen cooked in the aluminum pot I saw in K-dramas and have a drink in a cup of ice."

◆ Boost K-Food consumption through local online platforms and pursue economies of scale = aT is working to expand K-Food's presence in large retailers and online platforms across Indonesia. The online retail market is growing in Indonesia, particularly among Millennials & Gen Z. In response, aT is helping K-Food enter major e-commerce platforms such as Shopee and Tokopedia, and is increasing access to K-Food through viral marketing campaigns featuring influencers on major social networking services (SNS). Shin said, "Platforms that offer ride-hailing, shopping, and food delivery all in one are thriving in Indonesia. We regularly run online promotions, including Shopee K-Food campaigns and live commerce events in collaboration with local buyers."

He also said that scaling up was necessary to further expand K-Food exports. "Until now, K-Food has mainly been imported and distributed in Indonesia for Korean residents who are already familiar with it. But further expanding K-Food exports requires the involvement of local buyers with strong capabilities in local licensing and distribution infrastructure," Shin said. "It is time to develop a strategy to supply K-Food, which is currently consumed mainly in Jakarta, to other parts of Indonesia and increase consumption."

Supported by: Ministry of Agriculture, Food and Rural Affairs and Korea Rural Economic Institute

This content was produced with the assistance of AI translation services.