Referring to the process of planning, implementing, and managing the efficient transportation, seamless flow and storage of halal products, the global halal logistics market is expected to grow over 5% per annum in the next 10 years. The market valuation, meanwhile, is predicted to double, from more than $321 billion in 2023 to $528 billion by 2033, according to Halal Logistics Market Outlook (2023 to 2033).

The rising halal food trade globally and growth in the Muslim population has led to an increase in halal product spending. Even, the halal sector has developed beyond the halal food to include range of lifestyle products and services, such as clothing and hospitality. Spending on halal items has expanded as Muslim population has grown and the worldwide halal food trade is predicted to develop as a faster rate.

As the biggest country with the biggest Muslim population in the world, Indonesia halal logistics market will go with the trend, even higher.

In a recent discussion with Indonesia Cargo Times, PT Intitrans Perkasa Abadi Director, Tjong Chia Huie affirmed with the trend, saying the increasing demand in halal products, both in global market and in Indonesia, has encouraged a higher potencies of halal logistics services, thus triggering more logistics players to involve.

“The potency of halal products in Indonesia is very promising, reaching more than USD 20.16 billion per annum, or around 14.29% of total values of national halal products consumption,” Tjong explained.

“Of course, this is a huge market. In the future, the market will be bigger and bigger as the producers’ awareness on using halal logistics service is increasing,” he said further.

According to Tjong, the Indonesia halal logistic market is becoming more and more potential as the country has become the third biggest country in the world in view of trade of halal products. Indonesia’s value of halal products international trade reached USD 53 billion, while domestic is higher, reaching USD 144 billion.

“This is a huge market. The potency is very promising. That is why we (IntiCorp Logistics) will continue to expand our market share in halal logistics,” Tjong revealed.

Moreover, the Indonesia government has been focusing on promoting a halal ecosystem in the country. Some Halal Industrial Estates (KIHs) have been directly boosting domestic business, including the logistics business.

Continually Expanding Services Scope and Coverage

IntiCorp Logistics remains one of the pioneers in running halal logistics in Indonesia. Since certified by the authorized institutions of BPJPH – MUI in 2022, the corporate has been continuing to run and expand its services, from fleet management, storage/warehousing, and materials handling according to the principles of Shariah law in ensuring the integrity of the halal products at the point of consumption.

“Our halal logistics services mean to ensure integrity and assurance of halal products from fabric until consumers (end users),” he said.

In ensuring the logistic process from producers until consumers, IntiCorp Logistics has provided any kind of halal facilities, from storage (warehousing) facilities until distribution (transportation) facilities. IntiCorp Logistics has warehouses in several areas and always strives to follow customer needs to support customer business development in various regions in Indonesia.

“Our halal logistics services are complete, both in warehouse facilities for storage and transportation fleets for distribution. Our warehouse services include the activities of packing, bundling, labelling,” he said.

And to support its halal distribution, IntiCorp Logistics has more than 200 owned fleet plus some fleets from its partners nationwide. “We have variety of truck types, ranging from CDD to Big Mama 52 to support our distribution process.”

Meanwhile, IntiCorp Logistics freight forwarding services covers the activities of customs clearance, container cleaning and inter-island delivery.

IntiCorp Logistics halal logistics domestic service coverage ranges from Sumatra, Java, until East Indonesia regions such as Kalimantan and Sulawesi. Meanwhile, the centres of services are located at almost big cities of Jakarta, Bandung, Kendal, Surabaya, Denpasar, and Pekanbaru.

In the future, IntiCorp Logistics will continue to expand its market coverage to East Indonesia as the region market will become more and more potential. “We will strive to continue developing in strategic areas in Eastern Indonesia,” said Tjong.

Tjong is optimistic that service expansion both in scope and coverage, will increase the IntiCorp Logistics market share in Indonesia halal logistic market.

“As a new player in the Indonesian logistics industry, we have not yet taken this into account, but we are always trying to develop our market and national reach throughout Indonesia, especially in supporting the distribution of national Halal products,” Tjong explained.

Contribution to the Group

Tjong explained that the contribution of halal logistics to the group has been significantly increasing from year to year.

Before developing its halal logistics service in 2022, IntiCorp Logistics has run some businesses. Since 2021, IntiCorp Logistics has been running as holding of several companies that have previously operated such as IntiRent, IntiLine, and IntiForce. The addition of several freight forwarding service industries makes IntiCorp Logistics Logistics even more complete as a logistics service provider in Indonesia.

IntiCorp Logistic acts as a 3rd party logistics provider to its customers, both from the domestic activities (transportation and warehousing) and export-import (freight forwarding).

In general, the transportation business stays as the leading contributor to the group giving 40% of the total, then followed by warehousing (30%), and freight forwarding and the heavy equipment industry with 15% each.

In terms of revenue, the transportation business still makes a big contribution, however, other businesses such as warehousing and freight forwarding are growing with the increasing market share of IntiCorp Logistics in the national logistics industry.

Tjong expects that contribution of halal logistics to the group will be higher in the future. “We are quite confident and positive in seeing the future of Halal logistics development, not only because the high growth of the Indonesian halal industry, but also because of a better awareness of using halal logistics services from product (cargo) owners,” said Tjong.

Tjong is also very optimistic with the future market of halal logistics as many efforts have been done by the government to encourage the halal industry through strengthening the halal logistics ecosystem in Indonesia.