Halal Sector Research Articles

Strategies to Improve Halal Tourism in Indonesia During The Pandemic Covid-19

The Covid 19 has had an impact on various sectors of human life. One of them is the tourism sector. The tourism industry which is predicted to be the second largest source of foreign exchange contributions for Indonesia has experienced a drastic decline. Likewise, the halal tourism sector has also been severely affected by the Covid 19 pandemic. This is because the key to developing the halal tourism sector is Muslim tourists or visitors who come. To revive the tourism sector, it requires a number of strategies prepared by the government to improve the economy in the halal tourism sector. The purpose of writing this article is to find out how the impact of Covid 19 on the halal tourism sector and how the strategy to revive the halal tourism sector during the Covid 19 pandemic. The method used in this study is a qualitative method with data collection techniques used is literature study. The results of the study state that the strategy to restore the halal tourism sector from the Covid 19 pandemic consists of 3 stages and recommendations for implementing health protocols. The existence of this strategy and also the health protocol is expected by the enthusiastic community to return to enliven the tourism sector, including halal tourism.

Making Indonesia as Integrated Halal Zone and World Halal Sector Hub Through the Implementation of Halal Supply Chain

Halal supply chain management is one of the implementations that has been undertaken by several countries in the world, and even countries with a majority non-Muslim population. The halal sector in the world has developed quite rapidly. It has penetrated to all fields, one of which is Islamic banking and finance which has evolved quite well in helping the economy of a country. The research used in this research is descriptive qualitative research as an illustration in the Halal Supply Chain process that has been used by several states that have successfully implemented this system. Halal Supply Chain is a cycle that has been set by each country and has standards that guide the processing of a product, so it reaches the consumer. Indonesia is determined to become the centre of the halal world through the implementation of the halal supply chain in the form of Integrated Halal Zone (IHZ), IHZ is one of the functions to encourage the halal industry to develop and be able to compete with other countries quickly. Additionally, the Indonesian Ulema Council and the Ministry of Religion can easily oversee halal product standards from upstream to downstream. Hopefully the results of this research will contribute to the academic world and practitioners of Islamic economics.

Systematic Review of Halal Studies Adopting Theory of Planned Behaviour

Halal sector has emerged as one of the fastest growing markets in the world. Along with the increasing demand for halal products, researchers and experts have also produced a growing body of knowledge in the halal field. This paper aims to unveil the emergence and growth of halal studies using theory of planned behavior. Theory of Planned Behavior consists of three main variables: attitude toward the behavior, subjective norm, and perceived behavior. The method used is a systematic literature review, following Barbara Khitchenham. The authors found that 123 papers were qualified to be included in the study. There are 24 themes discussed in these halal studies, with the most significant contribution focused on consumption and products. Majority of studies are from Malaysia and Indonesia. Further research is necessary to examine several themes that are still not widely studied.

Analisis Kinerja Keuangan Bank Umum Syariah di Indonesia berdasarkan Islamicity Performance Index Periode 2015-2019

Islamic Commercial Banking in Indonesia generally has not fully carry out business activities in accordance with sharia provisions. Therefore, there is a need for a performance measurement tool that is able to express spiritual and social values embodied in Islamic banks. The purpose of this study is to describe the performance of Islamic banking based on Islamicity Performance Index. This research is a quantitative research using descriptive analysis. The data used in this research is secondary data. The study population was Islamic banks in Indonesia during the period 2015-2019, with a sample of twelve banks. Sampling was done by using purposive sampling method. The results showed Panin Dubai Sharia Bank was the best bank in the Profit Sharing Ratio (PSR) indicator. The value of Zakat Performance Ratio (ZPR) in Islamic banking in Indonesia is still low. BNI Sharia is the bank with the highest average value for the ZPR indicator. Equitable Distribution Ratio (EDR) indicates that Mandiri Sharia Bank has the highest average value. Directors-Employees Welfare Ratio (DEWR) shows that BTPN Sharia have fairly high levels of disparity between directors and employees. IIR and IsIR shows that in general Islamic commercial banks in Indonesia have carried out businesss performance in the halal sector. Meanwhile, overall, it received a satisfactory predicate. This research is expected to be taken into consideration for the related institutions to apply the performance measurement of Islamic Commercial Banking in accordance with the concept of Islamicity Performance Index, and be taken into consideration in taking policy measures in accordance with the concept of sharia that will be used in the future. 

Factors Affecting Islamic Social Reporting in the Halal Industry Sector

Islamic social reporting is a measure of Islamic-based social performance reporting in each company. Increased disclosure of Islamic social interpretation will influence investor decisions. This study aims to analyze what factors influence the declaration of Islamic corporate social responsibility. The data used is the annual report of companies registered in the halal industry sector from 2013 to 2018 with 44 selected companies. This study uses a random effect model (REM). The analysis results show that the halal lifestyle, profitability, and leverage are significant in disclosing Islamic corporate social responsibility. Implementation of ISR disclosure as a form of accountability is based on principles and philosophies following Islamic Sharia. Therefore, companies must improve their financial performance to enhance corporate social responsibility disclosure quality, which is very important for stakeholders in investing.

New Enhancement of Shariah Governance in Islamic Finance and Halal Sectors in Malaysia: Bridging a Gap towards Integration

New Enhancement of Shariah Governance in Islamic Finance and Halal Sectors in Malaysia: Bridging a Gap towards Integration

Determinants of Attitude and Intention towards Adoption of Islamic Finance among Small Businessmen of Rawalpindi and Islamabad

Halal and Islamic Finance business sectors are Shariah-compliant and the values, principles and market they share with each other are very similar. In spite of these significant similarities, the connection between Halal sectors and Islamic finance is not very healthy. We can quote an example of Malaysia here, where this poor connection is comprehendible as the people from Halal industry adopt Islamic Financing at a very low rate. In order to become a real Halal business operator, the venture must be conscious about the adequate and halal means of financing as well apart only focusing upon the Halal production. Nevertheless, this phenomenon does not seem to be properly addressed. In order words, we can say the Holistic Halal concept should be adopted by mandatory integration of the Halal production with Islamic financing. This research aims to find the determinants the attitude and intention towards adoption of Islamic finance among ‘Small Businessmen’ through survey instruments.

ANALISIS PERAN KEPUASAN WISATAWAN MEMEDIASI PENGARUH ATRIBUT WISATA HALAL TERHADAP MINAT BERKUNJUNG ULANG PANTAI SYARIAH BANYUWANGI

The growing consumer interest in the halal sector, especially tourism, is accompanied by the awareness of tourists in choosing tourist destinations that have implemented sharia principles. Opportunities like this should be immediately followed up by tourism managers because they relate to the marketing strategies they have to do. Travelers who have had a satisfying travel experience will voluntarily revisit these tourist destinations and will recommend them to friends, relatives, and colleagues. That way, the tourism manager must meet the needs of tourists so that they are satisfied and foster interest in revisiting these tourist destinations. This research is a quantitative research by conducting a survey using 180 samples, namely tourists on the Banyuwangi Syariah Beach. The analysis tool used is Warp-PLS 3.0. The results found are that it is known that tourist satisfaction mediates the full influence of the attributes of halal tourism on the interest in revisiting. Keywords : Islamic Attributes of Destination, Interest in Revisiting, Tourist Satisfaction, Halal Tourism.

Role of The Halal Industry in Recovering the National Economy in Covid-19 Pandemic

The outbreak of the Covid-19 pandemic in Indonesia is attacking not only public health but also the economy. The presence of Covid-19 has many important impacts on developed countries. There are at least four industries most impacted by this pandemic, including households, MSMEs, companies and the financial industry. However, the halal industry is believed to be more resilient to the Covid-19 pandemic. This durability is because of the principles attributed to the halal sector, namely the importance of fairness, balance and openness. The author’s goal is therefore to carry out more in-depth research on the role of the halal industry in supporting the national economy, which is under pressure because of the COVID-19 pandemic. This type of study is a literature review with a material analysis approach that explores the conditions of the halal industry in Indonesia in depth. The material received is as books, published information, and online news. The findings of this study reveal that there are three halal business sectors that are believed to be more vulnerable to the Covid-19 pandemic in order to facilitate national economic recovery. Halal finance, halal food and halal fashion industries are among them. Halal finance from both the banking sector and the Islamic stock market has proved to be more robust than the mainstream financial sector. Besides guaranteed halal food, its wellbeing is also guaranteed, and halal fashion is now on the rise as Muslim fashion is increasingly innovative and global. We believe the three of them to have experienced vigorous growth, and also to continue to draw customers. And also after the Covid-19 pandemic, these three sectors could survive. Thus the halal industry also contributes to Indonesian economy.

Industri dan Supply Chain Halal dilihat dari Aspek Keilmuan Teknik Industri

The potential for the Halal Industry is enormous, both for foreign and domestic needs in Indonesia. The need for commodities with halal guarantees for Muslim countries, even in non-Muslim majority countries, continues to increase from year to year, in the form of foodstuffs, medicines and cosmetics. From 2017 to 2018 it grew to 5.1%, reaching 1.37 trillion dollars in 2018. However, Indonesia is still a consumer and not a producer. Various challenges in the halal industry and supply chain as well as challenges in the Islamic economy as a support for the halal industry become an analysis of the causes of Industrial Engineering Science with its various scientific tools can be the answer to some problems. This research will explain about the Halal Industry and Supply Chain from the scientific aspects of Industrial Engineering which includes facts and data on the halal sector, regulations and sharia economics as a support for the halal industry, the halal food sector, halal operations, halal logistics (supply chain). ) and the potential of the halal industry in Indonesia.

Islamic Financial Institutions And Their Impact On The Development Of Halal SMEs In Nigeria

Islamic Financial Institution is considered Halal and Shariah-compliant institution that effectively developed and impacted the role of developing Small Medium Enterprises by sharing similar value, principle, and market activities under Shariah-compliant and business sector. Despite its similarities, there is still low penetration of Islamic financial institutions on the Halal business instrument. However, the business should not only concentrate on Halal business but also financing SMEs is essential. The purpose of the study is to investigate the impact of Islamic Financial Institutions on the development of Halal SMEs in Nigeria. A 350 survey questionnaire was distributed to the twenty (20) Halal Small Medium Enterprises using Structural Equation Modelling and random sampling as an essential investigation tool. The findings justified that the development of SMEs with a significant number of business units and financing from Islamic financial institutions indicates a positive direction and promotes the development of SMEs ' relatively and broader representation of the Halal industry. The study shows a general overview of the positive impact on Islamic financial institutions towards the financing Halal sector and addresses the rate of unemployment in Nigeria. The study recommends strategies for creating a partnership with Middle-East and Asian investors for more effective models and application techniques for financing SMEs and addresses the rate of poverty and unemployment in the country.

Knowledge, Acceptance and Application of Islamic Financial Management among Small and Medium Enterprises (SMEs) Halal Entrepreneurs in Peninsular of Malaysia

The Halal industry in Malaysia has created employment opportunities especially among Small and Medium Enterprises (SMEs). High demand for Halal products especially from Islamic countries has transformed the development of this sector into a national priority. In the Eleventh Malaysia Plan (11MP), the competitiveness of the Halal industry was given special emphasis by the Prime Minister. In Asia, Malaysia has long been considered as a leader in the development of the Halal sector. However, the Halal industry is not only about Halal food production, but also covers Islamic finance services which prohibit interest (riba), uncertainties (gharar) and gambling (maysir). Islamic financial management is one of the important parts of Islamic finance because it plays a big role in providing Shariah-compliant funds and investment opportunities especially for the SME Halal entrepreneur. The holistic approach to the Halal industry should also cover not only food production but also Islamic financial management which includes activities such as how to create, increase, purify and to protect wealth from an Islamic perspective. Therefore, this study examines the relationship between the knowledge and acceptance of Islamic finance, and the application of Islamic financial management among halal entrepreneurs in Peninsular Malaysia. The findings of this study reveal that the knowledge and acceptance of Islamic finance is significantly correlated with the application of Islamic financial management among halal operators of SMEs. This indicates that to integrate the Halal industry with Islamic financial management activities, Halal entrepreneurs should be able to know and accept the Islamic finance principles. This will, in turn, facilitate the promotion of Malaysia’s Halal industries on the global stage.
 Keywords: Halal Industry, SMEs Halal entrepreneur, Islamic Financial Management

MODELING SUSTAINABILITY MODEL OF ISLAMIC MICROFINANCE INSTITUTIONS

Islamic microfinance institutions (IMFI) - such as the Baitul Maal wat Tamwil (with cooperative legal entities) that have been established in Indonesia - as part of the shariah-compliant financial industry sector (part of the halal sector) - need to be maintained their sustainability so as to encourage efforts to eradicate poverty and promote economic growth. In observing the sustainability of BMT, studies involving aspects of human quality that carry out internal activities are rarely examined in other studies. Therefore, the purpose of this stud is to create a model that is useful for predicting the sustainability of IMFI especially BMT based on variables that are considered important, namely; financing growth, Islamic human capital, fraud, and Islamic leadership. The model was analyzed using multiple regression analysis based on the stepwise method. Primary data (cross-sectional) taken in 2019 using questionnaires consisting of 105 respondents from the administrators and managers of BMTs in Semarang and Pekalongan Residency areas. We found that only two variables have a significant influence on the sustainability of Islamic microfinance institutions, these variables are financing growth and Islamic human capital. The results of the study can be used by practitioners to improve the performance of Islamic Micro Finance, especially BMT, through the distribution of funding in the context of economic improvement (especially micro-enterprise), spiritual strengthening for human resources owned, risk prevention, and appropriate leadership criteria. JEL Classification: G21, J24, Q01 Keywords: Islamic microfinance, Human capital, Sustainability, Model

The emergence of halal food industry in non-Muslim countries: a case study of Thailand

Purpose The paper aims to explore the development of the halal industry in Thailand. It endeavours to investigate the main factors behind the country’s success as one of the largest exporters of halal-certified foods and products in the Southeast Asian region, in spite of the fact that Thailand is a non-Muslim-majority country. Only 4.3 per cent of the 69-million population of Thailand is Muslims. Design/methodology/approach In articulating the issue objectively, qualitative research method was adopted. This paper used structured literature study by analysing various subjects of halal pertaining to Thailand’s halal sector. At the same time, several in-depth interviews with the corresponding halal authorities in Thailand, as well as site visits, were also conducted. We also undertook observations in several sites in Thailand to analyse the issue further. Findings Findings from the research show that the strong presence of Thailand in the global halal industry is because of its bustling tourism industry that helps to bolster the country’s halal branding, its uniformity of halal definition and standards and effective support to the local SMEs. Practical implications This research implies that the standardisation of halal in a country is imperative in the Muslim-majority or Muslim-minority countries. This study gives a benchmark for the non-Muslim-majority countries which endeavour to embark on the halal industry. Muslim-minority counties that envision to succeed in the global halal market could emulate Thailand’s approach in branding itself as a recognised non-Muslim-majority country in producing certified halal foods and products. Originality/value The paper provides guidelines and standards for Muslim-minority countries that envision success in the global halal market.

Challenges in halal food ecosystems: the case of the United Arab Emirates

PurposeThe purpose of this paper is to investigate challenges in balancing interoperability, food quality and customer satisfaction in halal food supply chains.Design/methodology/approachThe study employed ethnography and grounded theory research methodologies. Research methods were ethnographic content analysis and document content analysis. The research framework encompassed a range of stakeholder groups connected with the halal food supply chain in the United Arab Emirates (UAE), focussing on Islamic jurisprudence, halal food sector analysis, import regulation compliance, halal food certification (HFC), food production, retailing and consumption.FindingsThe research found that supply chain intermediaries are challenged in balancing interoperability issues around non-unified global certification standards. Consequent variability in customer confidence in halal standards was found.Research limitations/implicationsThis research focussed on the internal supply chain in the UAE, with future scope in HFC systems among external supplier nations and wider market research on customer perceptions of halal food integrity.Practical implicationsTransferability of the findings is high; to other halal food markets in particular, as well as supply chain systems for halal products across other Islamic economy sectors, notably halal pharmaceuticals and cosmetics. Aligning the halal ecosystem with trends in healthy eating and environmentalism is also considered.Originality/valueThe paper uniquely explores the halal food sector from the perspective of variant stakeholder disciplines in halal sector governance and operation. It exposes vulnerabilities in halal supply chains in a nation with one of the most demanding and diverse agri-food supply systems in the world.

The relationship between halal and technology, an approach to consider Halal techniques in the robot revolution and artificial intelligence

The relationship between technology and Halal has existed since the Halal concept linked with the industry and the production by the halal products. This marriage increasing dramatically with the technological developments, especially through robotics and artificial intelligence, which led the researcher to highlight this relationship and employing it supporting the Halal sector. To strengthen this relationship the researcher has back to the beginning of it that was in the auto slaughtering and has shown the gap that made by the technology and its effect on halal standards, which was due to the unconsidered the principles of halal in the technology which has made already in the auto slaughtering, that led the researcher to discover the relationship's features between robot development and halal techniques, and supports this relationship to guarantee the Islāmic principle in halal products and be away from the Islāmic justification to the technology.

Halal Industry: Are The Businesses Fully Awake?

Nowadays, organisations are involved in intense competition to sell their products and services globally. The current target market covers nearly every country in the world, including Islamic countries. For example, Japan and Australia are putting great effort into catering to a rising number of Muslim clients by increasing their investment and expertise in halal products and services. Their aim is to attract the attention of the growing Muslim population to add a billion by 2050. Halal products include food and beverages, personal care, cosmetics, pharmaceuticals and health products. Meanwhile, halal services comprise areas such as Islamic finance, takaful, travel, education and healthcare. Subsectors such as media, consulting, events, online services, software development, logical services and lab testing can also benefit from the growth of the halal sector as a whole. The authors will attempt to achieve two objectives in this paper: (i) to examine current literature and (ii) to determine the success factors of and issues faced by halal businesses. The Malaysian government’s intention is not only to support the halal industry in terms of complying with regulations set by the authorities and obtaining the relevant certification; the output must also meet international standards to supply consistently high-quality products and services to win customers’ hearts.

EVALUATION OF THE BUSINESS EXCELLENT IMPLEMENTATION AMONG HALAL CERTIFIED FOOD MANUFACTURERS IN MALAYSIA

Purpose of the study: The aim of this study is to highlight the strongest and the weakest aspects of Halal food manufacturing industries in Malaysia based on AT&T criteria. Methodology: This research used survey strategy. Based on this research choice, the data was collected through questionnaire. Main findings: Achievement of the halal certified food manufacturers is 823.7. Halal certified food manufacturers’ performance is at the silver level. Applications of this study: Top management of the halal sector will be able to grasp their strongest point and set goals and strategic plans to improve the key elements that need attention. Use of a self-reported questionnaire in the study can serve as a benchmark for future research in other countries of the world. Novelty/Originality of this study: The study provides new insights in the area of Business Excellence, especially related to halal manufacturing.

دور البيئة التشريعية في تطبيق معايير الحلال في المنتجات والخدمات وملائمة النظام القانوني الليبي استرشادا ʪلمعايير الماليزية

Halal standards are based on religious values that are unique to other legal systems. Consequently, the legislation of the surrounding environment may have direct effects on the application of these standards, and that these effects become more complex the more the environment embodied in the contents clash with the Shariah-based Halal. In order to show the importance of the Halal sector in both religious and investment aspects, this paper examined the contribution of the legislative environment to Halalization and how Halal standards could be adopted in the products and services by the existing legal systems of the countries that have not adopted them, through comparison between legal systems. The paper used the Libyan legal system as a case study because its system is less concerned about Halalization. After analyzing the laws related to Halal products and services, it was found that the Libyan legislative environment is rich with the contents of Halalization; even if the Halalization is not codified in the contemporary concept just as stated in the Malaysian standards that the paper adopts as a criterion for the comparison, it implicitly includes most of the contents of these standards. The paper recommends that the Libyan system should adopt the Halal standards to benefit from this sector.

Strategi Perbankan Syariah Sebagai Solusi Pengembangan Halal Industry di Indonesia

This study aims to improve halal industry through the role of sharia banking with financing channeled by the Islamic banks to finance customers. The method used in this research is qualitative and quantitative research. The qualitative data processing technique is sourced from the analysis of the interviews conducted by the syariah bank and the financing customer, while the quantitative analysis uses secondary time series data derived from publication reports from OJK and BPS from 2005 to 2017 with Eviews software tool. The variables of this research are halal sectors (Halal GDP) as dependent variable; total sharia bank financing; inflation, and export of halal industry as an independent variable. The results of this study proves that sharia banking can encourage the increase and development of halal industrial sector through financing customers in Islamic banks. The econometric results also prove that research variables such as the number of halal industrial sectors will increase with the increase in the business of customers who get halal certification. Despite the inflationary conditions, it does not slow the growth of halal industrial sector.