Factors Influencing Readiness towards Halal Logistics among Food and Beverages Industry in the Era of E-Commerce in Indonesia

Abstract

Based on Global Islamic Economy Indicator 2019/2020 report, Indonesia is in the fourth position globally as a country that uses a Sharia economic system. Seeing Indonesia's opportunities, it should be able to act as a regional and global halal hub. Efforts to encourage the halal industry through strengthening the halal value chain are one of the strategies to encourage Indonesia to become a global halal hub player. This study utilizes the structural equation modeling to examine relationships among key factors affecting readiness towards halal logistics in the food and beverages industry in Indonesia. 13 key factors are confirmed with measurement-model results, including (1) Cleanliness, (2) Safety, (3) Islamic Dietary Law, (4) Physical Segregation, (5) Material Handlings, (6) Storage and Transport, (7) Packaging and Labelling, (8) Ethical Practices, (9) Training and Personnel, (10) Resource Availability, (11) Innovative Capability, (12) Marketing Performance, (13) Financial Performance. The population in this study is in the food and beverage industries, especially in Semarang, Yogyakarta, Malang, and Surabaya. Cluster random sampling was used in this research with as many as 150 sample respondents. A survey with an online questionnaire was conducted in this research. The structural-model results reveal directions of relationships among key factors. Resource availability, training and personnel, and innovative capability are the most important factor in halal supply chain readiness. Further research can focus on other industrial sectors, such as fashion and tourism, as stated in the 2019-2024 Indonesian Sharia Economic Masterplan