Cho-A Pharmaceutical is going to enter the Indonesian market in earnest as it obtained Halal certification in Indonesia.
Indonesia is the largest halal market in the world, with annual consumption of halal products and services worth 184 billion dollars (approximately 244 trillion won).
The Organization of Islamic Cooperation (OIC), formed by 57 Islamic countries around the world, predicts that the domestic halal market in Indonesia will grow at an average annual rate of 14.96% by 2025.
On January 30th, Cho-A Pharmaceutical announced that 'Jalkton Step 1' and 'Jalkton Step 2' for export, which help children's development, have obtained halal certification from the Indonesia's halal certification agency MUI.
'Halal' refers to products that Muslims can eat and use. Indonesia has the largest Muslim population in the world with more than 88% of its 270 million population being Muslim.
Because it is difficult to obtain halal certification in Indonesia, it is a market that is not easy to enter.
Indonesia enacted the Halal Guarantee Act in 2014 and has been implementing the mandatory halal certification system in stages since October 2019. In order to get halal certification, the product must not contain alcohol and animal ingredients such as pork.
Cho-A Pharmaceutical said that this halal certification has a special meaning as it was certified by MUI, a halal certification body in Indonesia, which is considered one of the world’s three authorities in halal certification along with Malaysia’s JAKIM and Singapore’s MUIS.
The company explained that on-site due diligence including the production and material management process as well as the submission of safety documents was required to get certification.
The company’s strategy is to advance to the Muslim market by using Indonesia as an outpost toward the halal market that encompasses Southeast Asia and the Middle East.
An official from the company said, "We have obtained the Indonesian MUI halal certification and thereby placed a stepping stone to enter the halal market. We will expand the market to North Africa and Europe in the future to create new growth engines for Cho-A Pharmaceutical.“
[WIKI KOREA=Cho Pil Hyun, Staff Reporter]