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The Importance of Integrating the Halal Food and Beverage Value Chain

As a predominantly Muslim country, Indonesia should become a center for the development of Islamic economics in the world. The potential to get there already exists, ranging from halal certification, concern for Muslim-friendly products, services that make it easy for Muslims to carry out their beliefs, and more.

One strategy to achieve the vision of Indonesia as the world’s leading Islamic economic center is to strengthen the halal value chain. Inside there are a number of industries related to the needs of the Muslim community which are divided into several clusters, namely halal food and drinks, halal tourism, Muslim fashion, halal media and recreation, halal pharmaceuticals and cosmetics, and renewable energy.

In the first cluster, namely the development of the halal food and beverage industry in Indonesia requires a chain that can illustrate a map of opportunities and challenges in the industry. Some factors that play an important role in the integration of the halal food and beverage chains, are as follows:

1.      Food and drink halalism

In the context of the halal food and beverage industry, the halal value of a product must be maintained from raw materials to finished products that are ready for consumption.

The implementation of halal value chain management is needed to ensure the quality of halal products and services. Product handling must be different and separated between halal and non-halal. The process must take place from upstream to downstream, so that the community can easily distinguish the two.

2.      Meeting quality standards

With this halal value chain, the expectation of quality standards, quality, services of halal products and services becomes a reality. Everything is integrated starting from input, production, distribution, marketing, and consumption.

Food products in their inputs must be guaranteed halal from the moment they are bred, animal feed, fertilizers and chemicals used must be halal. The halal value of the product must also be maintained when processing raw materials to the final product.

3.      Distribution and marketing

The process and distribution of halal food and beverage products must also be guaranteed in warehousing, packing, cooling rooms, and processing. 

After that, marketing must show the value of sharia, starting to be taken to supermarkets, grocery stores, to the consumers in restaurants, hotels and restaurants. The product must not be mixed with non-halal food.

4.      Sharia finance

Furthermore, as a form of complete development in maintaining halal value and integrity, the financing must use Islamic finance. Insurance is also sharia to minimize business risk. (*)

Source: Sharia Economic Master Plan of the Republic of Indonesia 2019-2024

4. Islamic finance

Furthermore, as a form of complete development in maintaining halal value and integrity, the financing must use Islamic finance. The insurance is also sharia to minimize business risks. (*)

Source: Indonesia Sharia Economy Masterplan 2019-2024

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