How is the Implementation of the Halal Supply Chain in Indonesia?

The halal supply chain has the potential to increase the competitiveness of Indonesia's national products. This opportunity is not only open to producers but also to logistics service providers in Indonesia. To encourage the halal supply chain, support from various parties is very important. These supporting factors include facilities and infrastructure, adequate information technology, quality human resources, collaborative cooperation between industrial stakeholders, and “good” regulations from the government. The role of the government is crucial in developing strategies, policies, and programs for implementing the halal supply chain, which can help the competitiveness of national products.

What is Halal Supply Chain?

The halal supply chain refers to a series of processes that ensure products or services related to food, cosmetics, pharmaceuticals, and other sectors comply with halal principles in Islam. The halal supply chain aims to ensure that products or services consumed by Muslims meet the halal standards.

The Halal supply chain requires collaboration between manufacturers, suppliers, distributors, and halal certifying bodies to ensure product halalness along the production and distribution lines.

Elements in the Halal Supply Chain

In the context of a halal supply chain, there are several important aspects that need to be considered to ensure a halal product or service. Some of the elements involved in the halal supply chain include:

1. Halal Raw Materials: All raw materials used in production must be halal. This means that the ingredients must be obtained, processed, and stored in accordance with halal requirements
2. Halal Facilities and Production Processes: Factories and production facilities must meet hygiene and halal standards, All equipment must be clean and free from contamination by non-halal materials, and the processes in production also must be in accordance with halal requirements.
3. Halal Certification: At each stage of the supply chain, it is necessary to carry out halal certification by a competent authority. This certification provides assurance that the product or service meets the established halal standards.

1. Halal Storage and Distribution: Halal products must be stored and distributed separately from non-halal products. The use of proper methods of storage and distribution must also be ensured to prevent contamination or changes to the product's halal status.
2. Labeling and Information: Halal products or services must be equipped with clear and informative labels to ensure consumers can identify halal products easily. Information regarding materials, production processes, and halal certification must also be clearly available.

Obstacles in the Implementation of Halal Supply Chain

In order to be optimal in implementing the concept of halal supply chain management, supervision and commitment from all stakeholders are required. Indonesia itself has not been fully able to apply this concept. This is related to several obstacles to implementing the concept of halal supply chain management, including:

1. In practice, halal certificates are limited to the production process and do not touch suppliers, retailers, or retail traders.
2. There are still several companies that do not have a halal certificate.

The Key to Success in the Implementation of the Halal Supply Chain

Quoting Talib, Hamid, and Zulfakar (2015), there are several key points of success for implementing halal supply chain management, which are as follows:

1. Government support, in the form of a joint commitment.
2. Special/dedicated assets, such as a special fleet for halal product transportation.
3. Information technology that integrates technology for tracking and tracing processes for measuring operational and supervisory performance.

1. Human resources, provide education in the form of training to help employees comprehend halal concepts and how to apply them more thoroughly.
2. Collaborative relationships vertically and horizontally between industry players, in the form of trust, transparency, and information disclosure between parties in the supply chain to increase mutual effectiveness and efficiency.
3. Halal certification, creation of halal standards and guidelines.

24 July 2023. Article By:

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