Islamic Financial Services Research Articles

The effect of Islamic finance on trade in insurance services in selected countries in the Middle East region

Purpose Islamic finance is becoming a core part of the financial services economy in the Middle East countries. There is a strong likelihood that Islamic finance is also driving the expansion of trade in insurance services. However, research on Islamic finance’s effect on trade in insurance services is scant. This study aims to fill this gap by investigating if Islamic finance has promoted trade in insurance services. Design/methodology/approach This study adopts the gravity modelling framework and the panel data estimation procedure in understanding the effects of Islamic finance on trade in insurance. Findings The empirical results reveal a statistically significant positive correlation of Islamic finance with the exports and imports of insurance services. Economic sizes (domestic and trading partners), growth in trading partners, cost of doing business, legal rights and financial freedom are other statistically significant determinants. Research limitations/implications It makes a positive contribution to the Islamic financial services literature. Islamic finance is an integral part of the conventional banking and financial sector in the Middle East that actively fosters the expansion of insurance services that need support, given its essential role in services trade. Originality/value This study is unique as it directs attention to the role of Islamic finance in fostering trade in insurance services within an inclusive modelling framework that has been overlooked in the Islamic finance literature.

The Implementation of Regional Policies Related to Sharia Financial Institutions in Lhokseumawe

One of the advantages of the Province of Nanggroe Aceh Darussalam is the Shari'a legal framework included in Law No. 11 of 2006 governing Aceh's administration. This study examines the role of the Indonesian Islamic Bank Lhokseumawe Area in the implementation of Qanun Number 11 of 2018 concerning Islamic Financial Institutions. Bank Syariah Indonesia (BSI) Lhokseumawe Area contributed to applying the Qanun for Islamic Financial Institutions starting from account migration, socialization of sharia products, sharia services and also signing of cooperation agreements with partners to use products from sharia banking. One of the focuses of BSI Lhokseumawe Area in the process of integrating service operational systems in the Aceh region is the customer migration process from the original bank to Bank Syariah Indonesia. This migration process can be done online through BSI Mobile or face-to-face. ATM cards, mobile and internet banking. In this process, the convenience and security of customer data are prioritized. The implementation of the qanun does not necessarily go well, there are obstacles faced in the process of implementing the qanun. Implementing Islamic financial services requires the attention and hard work of all parties and not only the bank. Stakeholders and citizens can continue to be patient and continue to encourage, and provide support to these financial institutions in correcting the weaknesses that occur so that with the presence of the Indonesian Sharia Bank, they can improve sharia economic growth and also for the benefit of the people.

ANALYSIS OF THE USE OF SHARIA FINANCIAL TECHNOLOGY (FINTEK) SERVICES STUDY ON APPLICATION SERVICES AT PT. AMMANA FINTECH SHARI'AH ACCORDING TO THE FATWA OF DSN MUI AND ISLAMIC LAW

The birth of Islamic financial service technology innovation (Shari'ah Fintech) has provided a lot of convenience. In practice, the community can carry out the financing collaboration process without having to meet face-to-face. However, behind all these conveniences, it is not widely known to what extent this sharia fintech application service is in accordance with the provisions of the DSN MUI Fatwa No. 117/DSN-MUI/II/2018 and also Islamic law, or is not in accordance with the legal provisions stipulated apply. This study aims to analyze the provisions of the MUI DSN Fatwa and Islamic Law on the fintech application services of PT. Ammana Fintek Syari'ah. The research method used in this study is normative juridical using a qualitative descriptive approach, namely research that aims to analyze the provisions of the Fatwa of DSN MUI and Islamic Law in theory and practice in the field. Based on the results of the study, it was found that the fintech services at PT. Ammana Fintek Syari'ah as a whole has conformity, as stated in the DSN-MUI Fatwa No. 117/DSNMUI/II/2018, including for points of general provisions, legal provisions, legal subjects, provisions related to general service guidelines and provisions related to mechanisms. contract. Meanwhile, according to Islamic law, the presence of fintech services at PT. Ammana Fintech Syari'ah has provided benefits for many people. There are two things from the five points of maqashid sharia that are maintained by the existence of PT. Ammana Fintech Syari'ah, namely, hifz al-mal (protection of property), and hifz al-nafs (protection of the soul).

Analysis Of Sharia Financial Literature Post Merger Of Sharia Commercial Bank Pekanbaru

Islamic financial literacy in Islamic financial institutions in the city of Pekanbaru, from the data revealed that the level of Islamic financial literacy of Indonesian Islamic bank customers, can be stated in good condition and high interest in using Islamic financial services, this is stated in the results of the study with an average the average level of Islamic financial literacy is in the good category (3.8). The data reveals that from Sharia financial literacy on knowledge, trust and skills, it reveals that the data reveals the level of public trust is also classified as good/high. This research was conducted on customers of Indonesian Islamic banks in Pekanbaru city. The type of this research is qualitative research. Keywords : Islamic Financial Literacy

The Effect of Sharia Financial Literacy on the Decision of the Use of Service Products in the Sharia Pawn in Yogyakarta

This study discusses to analyze the influence of Islamic financial literacy on the decision to use Islamic financial product services. The diverse educational backgrounds, ages, and occupations of students make them need literacy guidance to make decisions in choosing sharia pawn products that are suitable for the family’s financial needs. The population in this study is Sharia Pawn in Sariharjo, Yogyakarta. Data in the form of primary data using questionnaires and distributed as many as 111 results. The sampling technique was purposive sampling. This research is a quantitative study with data analysis methods using multiple linear regression. The results showed that Islamic finance affects decisions in the use of service products in Islamic pawn where the coefficient of determination (R2) is 83.4%, which means 83.4% of the variation in the decision to use products in sharia pawn following 3 supporting variables such as Knowledge and Understanding of Managing Finance (X1), Expertise and Skills in Managing Finance (X2), and Beliefs or Belief in Sharia Pawn (X3). While the remaining 16.6% was approved by other variables not approved in this study.
 Keywords: Sharia Financial Literacy; Sharia Pawn; Customer Decision

IFSB Standards Adoption and Its Impact on Islamic Banking Practices

The adoption of the Islamic Financial Services Board (IFSB) criteria for Islamic banks is more challenging for a bigger number of supervisory and regulatory authorities than for conventional banks.

The Shariah Compliance of Islamic Peer-to-Peer (P2P) Lending Practices in Indonesia: Identification of Issues and the Way Forward

Shariah compliance is an important aspect of all Islamic financial instruments and transactions. With the growth of innovation in the finance industry, Islamic fintech's presence has added players, such as digital platforms, which need to comply with shariah. Therefore, this study aims to examine Islamic Peer-to-Peer (P2P) financing activity implementation as part of the fintech business model. Through a descriptive qualitative approach, a thorough analysis was conducted of digital contract papers, prospectuses, and the positions of parties involved in six Indonesian Islamic fintech companies. This involved analysing the shariah compliant quantitative characteristics of a company's prospectus, with financial reports related to interest, debt, and non-permissible income screening. The shariah compliance implementation is not only the duty of Shariah Supervisory Boards, but also involved all interested parties, namely investors, providers, partners, and business owners/borrowers. The results of the study show that shariah compliance in Islamic P2P platforms has been well enforced, therefore avoiding usury (riba), uncertainty (gharar), and gambling (maysir), while ensuring that businesses are offering halal products. Also, the results are expected to provide insight into shariah compliant fintech and how it can continue to develop in terms of Islamic financial products and services. In addition, this study can become a benchmark in the implementation of shariah compliant fintech products.

Prospects of Sharia Governance in Islamic Finance Industry: Jurisdictions, Standards, and Implications

The paper aims to explore the establishment, organizational setup, and relevance of the international regulatory/standard setting institutions as Sharī‘ah governance platforms primarily AAOIFI (Accounting and Auditing Organization for Islamic Finance Institutions) and IFSB (Islamic Financial Services Board). The role of IIFA (International Islamic Fiqh Academy Jeddah) IFC (Islamic Fiqh Council of Muslim World League MWL) and ISRA (International Sharī‘ah Research Academy for Islamic Finance) and supportive Shari ‘ah compliance platforms for Islamic Finance Industry (IFI) in the corporate and academic dimensions. The study is qualitative analysis of related Guiding Principles, which enshrine the Sharī‘ah governance framework (SGF) in IFI. The discussion highlights that the (SGF) is the particular aspect in the Islamic Finance Industry (IFI), which embodies the legitimacy of instruments, and generates the trust of stakeholders and shareholders in Islamic finance. The paper shows that analysis will support the understanding of Sharī‘ah governance and jurisdiction of the Islamic finance industry in the contemporary Banking and finance sector. The outcome of the predicted hypothesis will enable to suggest and modify the ongoing banking practices in Islamic corporate with strict adherence to the sharīa standards.

The Impact of Political Institutions on General Insurance/ Takaful Consumption: A Comparative Study Between OIC Countries and Non-OIC Developing Countries

Political institutions are part of the overall institutional matrix of a country and cover institutions that are responsible for establishing and maintaining a robust and reliable political system. The impact of an instable political system on general insurance/ Takaful services demand in OIC countries is an area that has not been sufficiently explored in the literature. This study is set to empirically test the impact of political institutions on general insurance/ Takaful consumption in OIC countries versus non-OIC developing countries. To address the research question, fixed effects and random effects models are applied on a strongly balanced dataset covering 36 OIC countries and 67 non-OIC developing countries for the years from 1994 till 2015. The study used two different indicators of political institutions. Namely, the control of corruption index and the government effectiveness index which are retrieved from the World Governance Indicators (WGI). The study utilises insurance density rate as a dependent variable. Further, for more robust findings, the researchers utilise general insurance penetration rate as well. The results suggest that better political institutional environment would play a role in promoting general insurance/ takaful consumption only in OIC countries but not necessarily in non-OIC developing countries. This finding further illustrates the unique institutional environment in OIC countries. This paper recommends that policy makers look into the potential of integrating takaful services in the insurance industry especially in OIC countries that still do not offer Islamic financial services.

The Role of Islamic Finance in Achieving the SDG Number 9: Build Resilient Infrastructure, Promote Sustainable Industrialization and Foster Innovation

<span>The purpose of this research is to investigate the role of Islamic financing in achieving the Sustainable Development Goals (SDGs), specifically Goal 9: develop resilient infrastructure, promote sustainable industrialization, and foster innovation</span><span lang="EN-US">. U</span><span>s</span><span lang="EN-US">ing</span><span> qualitative approaches to integrate data from secondary sources such as the Islamic Financial Services Industry Stability Report</span><span lang="EN-US">, t</span><span>his paper demonstrates how sukuk</span><span lang="EN-US"> can</span><span> be considered as one of the alternative strategies capable of mobilizing financial resources and encouraging investment in infrastructure development projects.</span><span lang="EN-US"> The finding shows that sukuk is a crucial factor in supporting the SGDs number 9 by financing infrastructure development projects that might result in sustainable industrialization and foster innovation that focuses on keeping up with technological advancement.</span>

Optimalisasi literasi halal pelaku UMKM terhadap penggunaan jasa keuangan syariah di Kota Tebing Tinggi

Halal literacy of MSME actors has not been optimal in encouraging MSME actors to use Islamic financial services. In recent years, the halal industry through the food, finance, clothing, tourism, media and recreation, medicine and cosmetic sectors has experienced rapid development. This study aims to increase the halal literacy of MSME actors towards the use of Islamic financial services in the City of Tebing Tinggi. This research is a research (field research) using a field approach to produce descriptive data. The data comes from interviews and observations of MSME actors who are members of the IPEMI (Indonesian Muslim Entrepreneurs Association) in Tebing Tinggi City as primary data, as well as secondary data obtained from research locations, journals, books, documents, and records related to research. It can be said that the halal literacy of MSME actors still has the food sector, such as raw materials, production processes, and packaging. Although MSME actors have not been able to describe the halal relationship with Islamic financial services, indirectly MSME actors have the awareness to use or are interested in Islamic financial services.

Kesesuaian Penerapan Prinsip-prinsip Perjanjian Akad Mudharabah Perspektif Hukum Islam

This study determined to found the principles of the mudharabah muqayyadah contract agreement in the Islamic Financial Services Cooperative were following Islamic law or not? This study used a combined doctrinal (normative) and empirical (non-doctrinal) approach, interviews, observations and literature studies used to collect data. It was found that the values ​​contained in the principles of the mudharabah contract agreement in the mudharabah financing product were in accordance with Islamic law based on (al-mabadi al-ammanah) a justice (al-Adalah), equality (al-Musawah), deliberation (al-Syura), mutual assistance (al-Ta'awun) and tolerance (at-Tasamuh). The factors that lead to breaking promises in mudharabah contracts were due to inadequate human resources, management of Islamic financial institutions, information systems and technology, and immorality in financing activities. The solution was to master the technical aspects, the philosophical law of Islamic economics and Islamic economic law. If there was a violation of the agreement, it would be resolved by a peace system (sulhu) then arbitration (tahkim) and by a judicial process (al-qadha).

Peningkatan Literasi Keuangan Syariah Dalam UMKM Di Desa Kuta Parit Kecamatan Selesai Kabupaten Langkat

Community service activities in Kuta Parit Village, Selesai District, Langkat Regency aim to improve the financial literacy of local communities who have micro businesses so that they can understand the products of Islamic financial services institutions, financial institutions, especially banking, about the benefits and risks of using Islamic financial service institutions' products. The method used is to conduct Islamic financial education delivered by the presenters, as well as conduct evaluations in the form of pre-test and post-test to the participants who were present in the village office hall. The results of the PKM show that the literacy of PKM participants in Kuta Parit Village, Selesai District is quite good in understanding the material related to Islamic financial literacy presented a.) the difference between conventional banking and Islamic banking, b.) in addition to this, MSME actors also understand the products sharia banking service products.

Islamic financial literacy and Islamic banks selection: an exploratory study using multiple correspondence analysis on banks' small business customers

PurposeAlthough Islamic banks offer superior financial services than other interest-based conventional banks, they could not expand their share and dominate the markets in several Islamic countries. This problem could be attributed to some causes not addressed. The current study proposes Islamic financial literacy as an important factor that could help aggress this problem. Due to a wide variety of Islamic financial services and the lack of understanding of these services, the banks' small business customers are indifferent between Islamic and interested-based conventional services to finance their business.Design/methodology/approachThis study uses the exploratory technique of multiple correspondence analysis to detect any potential role of Islamic financial literacy in customers' preference for Islamic banks over conventional ones. The potential effect was tested with other essential factors, such as the customers' age, gender, and educational level. This analysis was conducted on a data set from 2061 banks' small businesses customers using the mall-intercept survey method.FindingsThe study shows a low level of Islamic financial literacy among Yemeni banks' small business owners' customers. Furthermore, despite integrating some critical factors that could influence the actual bank selection process among Yemini banks' customers, the authors found a decisive potential role of Islamic financial literacy as one of the key determinants of bank selection preferences.Originality/valueThis is the first paper to explore the potential role of Islamic financial literacy on the actual selection between Islamic Banks and their counterparts: the conventional banks in Yemen. The research results could build a more comprehensive theoretical model on Islamic banks' customer behavior.

RELATIONSHIP BETWEEN KPS AND BMT AT THE MODERN ISLAMIC BOARDING SCHOOL AL-RIFA'IE 2 MALANG

This study is a comparative analysis between savings and loan cooperatives and Islamic financial services cooperatives Baitul Maal wat Tamwil or BMT. This analysis was conducted to determine the relationship between cooperatives and BMT, so that they could provide real answers to the community, especially the public, that cooperatives and BMT are different entities. BMT is a microfinance institution that deals with middle- and lower-class entrepreneurs to help start up their business activities. BMT is intended to help the middle- and lower-class economies so that they can set up businesses without being caught up in loan sharks. Today, people often regard conventional cooperatives and BMT as financial institutions that are closely related to banks and interest. So they experience a deep dilemma when the need for business capital is not directly proportional to their mindset, they are in a dilemma if they have to pay interest and deal with moneylenders. This study is a field study (field research) with a qualitative approach conducted at Modern Islamic Boardng School al-Rifa'ie 2 Gondanglegi Malang Regency. Al-Rifa'ie has syari'ah cooperatives and BMTs that have won the trust of some people as financial service institutions that comply with Islamic law. The findings in the discussion resulted that cooperative and BMT in this case at Modern Islamic Boarding School al-Rifa'ie 2 have relations and differences. The relationship between the two lies in the legality of the institution, where BMT is under the auspices of the cooperative under its legal protection. The differences between the two are described in the comparative analysis table contained in the discussion chapter. This finding is expected to be able to provide a theoretical contribution to answer the community's doubts between conventional cooperatives and BMT.

The impact of Tier 1 sukuk (Islamic bonds) on the profitability of UAE Islamic banks

PurposeThe choice between different financing sources is governed by a number of finance theories, particularly, trade-off theory and pecking order theory. However, the special characteristics of Islamic finance, which forces the exclusion of conventional bonds, leave Islamic banks with limited number of alternatives. Tier 1 sukuk are distinguished type of sukuk that combines the features of conventional bonds and stocks. This paper aims to answer the following question: Does the issuance of Tier 1 sukuk positively affect Islamic banks’ profitability or is their impact concentrated on enhancing Islamic banks’ capital adequacy ratios?Design/methodology/approachThe data set used in this study consists of all United Arab Emirates (UAE) Islamic banks that issued Tier 1 sukuk over the period 2010–2020. Pooled and fixed effects panel regressions of Tier 1 sukuk and other control variables on three proxies of Islamic banks’ profitability were run. The selection of fixed-effect model is based on Hausman test, redundant fixed effects and likelihood ratio test.FindingsThis study reveals novel findings. Tier 1 sukuk increases both earnings per share (EPS) and capital adequacy ratios. That is, this study finds that there is a positive significant impact of Tier 1 sukuk on EPS, which indicates that issuing more Tier 1 sukuk will generate more return to shareholders in terms of higher EPS because of the lower cost of Tier 1 sukuk compared to equity. However, this study finds that there is an insignificant impact of Tier on sukuk on both return on assets and return on equity. Hence, it is concluded that Tier 1 sukuk does not increase the risk appetite of UAE Islamic banks.Research limitations/implicationsTier 1 sukuk is a niche instrument that has been recently used by Islamic banks. Hence, there are a limited number of Islamic banks that have issued this type of sukuk and consequently limited number of observations. Therefore, with the increased use of this instrument, a larger set of data will be available for examination. In addition, future research could examine the relationship between issuing Tier 1 sukuk and profitability in other countries where such sukuk have loss absorption feature. The impact of other types of sukuk, such as liability sukuk, on Islamic banks’ profitability could also be an interesting field of study.Practical implicationsThis study recommends Islamic banks to issue more Tier 1 sukuk to enhance their profitability indicators while meeting Basel III accord. This study also recommends investors to purchase the stocks of Islamic banks that issue Tier 1 sukuk because they are able to offer them higher EPS. The authors advise the UAE regulators to allow Islamic banks to issue Tier 1 sukuk with loss absorption feature to enable Islamic banks engage in more risky activities that usually provide larger profits. This study also suggests that the Islamic Financial Services Board (IFSB) reclassifies Tier 1 sukuk, with loss absorption feature, within the highest quality of capital, common equity Tier 1, to encourage Islamic banks to issue this type of sukuk, especially Basel III accord and IFSB 15 require higher ratios of common equity Tier 1 to risk-weighted assets.Originality/valueThis research contributes to the existing literature in two ways. First, it adds to the existing literature on the impact of sukuk on Islamic banks profitability. That is, contrary to prior studies that merely investigate the impact of issuing ordinary sukuk on profitability, this study explores a distinguished type of sukuk, that is Tier 1 sukuk, that has been surprisingly ignored so far. Second, this study shows that it is not only capital adequacy ratios that have improved as a result of issuing Tier 1 sukuk but also Tier 1 sukuk reduce the cost of capital of UAE Islamic banks which has been reflected in a higher profitability proxied by EPS. Hence, these sukuk serve a dual function for Islamic banks by improving both capital adequacy and profitability ratios.

KEY CHALLENGES FACED BY ISLAMIC FINANCIAL INSTITUTIONS IN SRI LANKA IN OFFERING SHARIAH COMPLIANT PRODUCTS AND SERVICES

Islamic banking and finance industry is a speedily and widely-ranging growing sector globally since its structured business initiation in the late 20th century AD. It is actual fact that Islamic and non Islamic nations are seriously concerning their curiosity to implement this potential banking and finance system in their countries and states presently as a result of negative impacts of burdensome interest system on their economics. At the same time, Islamic banking industry started its functions few decades ago among the influence of well established conventional banking and finance sector in Sri Lanka and it is developing gradually among the Muslims and other community people. However, it is notable that in Sri Lanka where Muslims are living minority level, the Islamic banking and financial institutions have to confront a number of challenges in their daily functions and the development as well. Consequently, the main objective of this study is to clarify the major Challenges faced by Islamic financial institutions in Sri Lanka. Accordingly, the study is designed as qualitative method and personal direct interview with semi structured questionnaire is used in data collection. The questionnaire for interview is dealt with selected important matters relating to the particular study. Furthermore, the secondary data required is also collected and utilized from related literatures and sources. Descriptive statistic analytical techniques are used in data analyzing to carry out the study effectively. In this context, the findings reveal that there are many negative impacts faced by Islamic banking and financial institutions in Sri Lanka in the operations of offering Shariah compliant products and services by means of the major challenges. Consequently, it is much important to find proper solutions to overcome these challenges and in the development of the sector. KEY WORDS: Islamic Financial Institutions, Challenges, Shariah compliant, Sri Lanka, Finance Products and Financial Services

The Role and Potential of Blockchain Technology in Islamic Finance

Blockchain is the underlying technology upon which cryptocurrencies such as bitcoin are built. Cryptocurrencies have received significant attention in recent years. This focus has obscured the real technical innovation in data storage and retention – that of the so-called ‘blockchain’ digital architecture. Blockchain – also known as ‘distributed ledger technology’ (DLT) – has the potential to change much more than the realm of conventional financial services. The ability to transfer, store and record non-fungible bits of information is an important technical accomplishment that brings the economic dynamics of supply and demand to the digital sphere. This article examines how DLT is (and may in the future) influence the world of Islamic finance. We argue that blockchain has the ability to mediate and harmonise differing shariacompliance regimes thus opening up a single digital market for Islamic financial products and services. Fintech, Blockchain, Distributed Ledger Technology, Islamic Finance, Shariah-compliance, Cryptocurrency, Bitcoin, OneGram, Financial inclusion, Sustainable Development Goals (SDG).

Pengaruh Edukasi Masyarakat, Promosi Produk, Dan Pelayanan Terhadap Kepercayaan Nasabah Untuk Menabung Di BMT (KJKS) Al – Falah Batanghari

Lack of knowledge or education makes people less understanding about Islamic financial services. Coupled with a modest promotion, and less extensive. Services that are also not improved will hinder the development of business progress. The success of a service production, will depend on how the customer assesses it, namely from the sense of trust that has been formed. If the customer has put his trust in a company, it is difficult for the customer to move to another financial institution, so that it can be mutually beneficial for both parties, namely the financial institution and its customers.
 Thus, this study aims to determine the effect of public education on customer confidence in saving at BMT KJKS Al - Falah Batanghari, (2) Knowing the effect of product promotion on customer confidence in saving at BMT KJKS Al - Falah Batanghari, (3) Knowing the effect of service on customer trust to save at BMT KJKS Al – Falah Batanghari.
 This type of research is quantitative research, with a sample or questionnaire method. The sample obtained by accidental sampling obtained as many as 50 respondents. While the data analysis technique of this research is using multiple linear regression through parial t test, simultaneous f test and the determinant coefficient R2.
 The results of this study indicate that (1) public education on customer trust in saving at BMT (KJKS) Al - Falah Batanghari has a positive and significant effect, from the results of the t-test to get a t-value ofcount 3.159 > ttable 1.679, (2) product promotion towards customer trust to save at BMT (KJKS) Al - Falah Batanghari has a positive and significant influence, from the results of the t test to get a value and tcount of 3,869 > ttable 1,679, (3) service on trust has a positive and significant effect, from the results of the t test get the value of tcount 4,589 > ttable 1,679.
 The conclusion, simultaneously that the three independent variables have a good role on customer confidence to save at BMT (KJKS) Al - Falah Batanghari by obtaining aF value ofcalculated 176,430 > Ftable 2.810, and the magnitude of the coefficient of determination is 0.920 or 92.0% which means 8% is influenced by other variables. It is recommended to BMT (KJKS) Al - Falah Batanghari to provide education to the community, increase promotions, and better services so that the public or customers are more interested, enthusiastic, and believe in saving.

The Impact of Halal Label in Halal Food Buying Decisions

The current development of the halal industry in the world has experienced a very significant increase to attract the attention of various groups. Trend indicators from the halal business can be seen in seven industrial sectors that continue to show an increase, including Islamic financial services, Halal food and beverages, Halal tourism, fashion, halal media and recreation, and well as halal pharmaceuticals and cosmetics. This study will raise the halal label on halal food and beverages in Indonesia. The quantitative research method used in this research is to apply Partial Least Square-Structural Equation Modeling (PLS-SEM) through Smart-PLS software. The sample of this research is 100, with the sampling technique used being non-probability sampling with the purposive sampling method. The results of this study are the significant influence of the halal label variable on purchase intention, purchase intention on buying decision, and the halal label variable on buying decision on halal food products in Indonesia. Alternatively, on product packaging, awareness of halal Indonesian society has begun to increase and make halal a lifestyle.