How Does Halal Industries Affects Awareness In Muslim Countries? Case Study Indonesia and Pakistan

Abstract

Indonesia and Pakistan are two largest Muslim majority countries in the world, in which, Indonesia is a nation home to 12.7% Muslims followed by 11.2% in Pakistan of the world's Muslims. Economic growth of these countries is affected because of the global Muslim population; increasing demand for high quality and safe products; a strong partnership in the field of export and import. The fundamental understanding of halal industry has undeniably helped the Muslim consumers in taking halal into greater awareness in the last few decades. In the globalization era, halal has been upgraded from its traditional understanding to the modern era. According to academic term, halal studies can be defined as scientific knowledge with a multidisciplinary program which is based on the halal concept or halal framework. This study is to determine the halal frame of two countries between Indonesia and Pakistan under the partnership term of halal trade center PHDA and MUI since 2016. This research using literature review and primary data to finding the affected product of the two countries and the significance of the halal trade both state. The method of this research is using regression analysis to finding and clarify the contribution of the halal awareness of both countries. The results of this paper has different aspects from each country between Indonesia and Pakistan that has been influencing the halal industry. All those aspects affected the awareness into halal industry are similar with different intuition and perspective.