Increasing the Resilience of the Food Systems
In Islamic States in Face of Future Food Crises
137
Country
Description and
Objectives
Outcomes
Indonesia Indonesia launched its
Islamic Indonesian
Islamic Economics
Masterplan (MEKSI)
2019-2024, which
recommended four
strategic steps with the
goal of Indonesia
becoming a major
producer in the global
halal industry by 2024.539
One of its initiatives is the launch of the Halal Lifestyle District,
a 21,000 square meter industrial parkwith an investment of
$18 million.540
A second important opportunity lies in attracting Foreign Direct Investments (FDI). FDI is a vital
instrument for diversifying exports—a relationship confirmed by many empirical studies.
Jayawera (2009) has found, for instance, that the cumulative effect over four years of a $1 billion
increase in FDI for low-income countries was the creation of 83.5 new export lines. Another
study byHailu (2010) has found that a 1% increase in FDI on the previous year in Sub-Saharan
African countries boosted exports by 0.043% in the following year.541
OIC countries, despite notable success stories in food and beverage—particularly Malaysia,
which attracted a $2 billion investment from leading multinationals in its Halal parks 542—
investment in the OIC remains low, at below 7% of global FDI flows in 2017.543
Figure 36: Top OIC Countries Receiving the Highest FDI Inflows in 2017
Source: UNCTADSTAT
539 “Indonesia set to becomemain producer in global halal industry by 2024.” Halal Focus. May 15, 2019.
and “Indonesia to Unveil
Sharia Economic Master Plan.” Eurasia Review.
economic-master-plan/
540 “Indonesia: President Jokowi inaugurates Halal Park in Jakarta.” Halal Focus. Apr 16, 2019.
541 “COMCEC Trade Outlook 2018
542 “Halal Parks and Halal Incentives InMalaysia.” 2015.
PARKS.pdf.
543 “COMCEC Trade Outlook 2018
23.063
10.864 10.354 9.543
7.392
5.019 4.634 3.503 2.867 2.806
0
5.000
10.000
15.000
20.000
25.000
Million USD