Indonesia: Halal industry investments set to drive takaful growth
Source: Middle East Insurance Review | Nov 2025
The Indonesian Shariah Insurance Association (AASI) believes that increased investment in the halal industry has the potential to positively impact the performance of the Islamic insurance sector in Indonesia.
Mr Arry Bagoes Wibowo, head of AASI’s Compliance and Inter-Institutional Legal Division, said that the $1.6bn investment in Indonesia’s halal industry from 2023 to 2024, as announced by the Ministry of Industry, could boost demand for Shariah-compliant financial products, including insurance, according to local media reports.
However, AASI currently does not have specific data on contributions from the corporate segment to the total national Shariah insurance industry.
The Financial Services Authority (OJK) is encouraging at least 50% of Islamic insurance players to develop products tailored to the needs of the halal industry by 2027.
Task force
In response, AASI has formed a task force to strengthen synergy between takaful companies and halal sector players. The goal is to increase the Islamic insurance sector’s contribution to the national Shariah financial ecosystem.
Furthermore, AASI plans to conduct a survey of protection needs in the halal sector. The results will be used as the basis for developing recommendations for relevant and actionable Shariah insurance for its members. The survey is to cover halal MSMEs, halal food and beverage producers, halal logistics, Muslim-friendly tourism, and halal cosmetics and pharmaceuticals. M