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Digitalization of Halal Food Supply Chain Management Based on Blockchain Technology

In: Contemporary Business Research in the Islamic World

Author

Listed:
  • Mohd Heikal

    (Universitas Malikussaleh)

  • Abdul Rachman

    (Cendekia Abditama University)

  • Muizzudin

    (Cendekia Abditama University)

  • Falahuddin

    (Universitas Malikussaleh)

Abstract

Digital transformation in Indonesia has witnessed significant growth, evident in the increasing number of internet users nationwide. Digital transformation plays a role in accelerating connectivity within various sectors, including the halal industry. The government, through the Halal Certification Agency, known as BPJPH, has made a breakthrough in digitizing halal certification, both regular and self-declared. Digitalizing halal certification has brought several advantages, notably facilitating halal certification registration for micro and small enterprises (MSEs). This digital approach offers convenience as it removes constraints related to time and geographical limitations. However, it is essential to note that the current digitization of halal certification has not yet integrated a comprehensive halal tracking system for food products from upstream to downstream, making it challenging to trace the halal status of products from producers, distributors, and retailers to consumers. This study employed a descriptive qualitative research method, utilizing a literature study. Data was primarily derived from secondary sources, such as data, regulations, documents, articles, and others related to blockchain technology and its use in the halal food supply chain. This research found that digitizing the halal food supply chain using blockchain technology allows users to record every transaction and related information within a decentralized block secured by cryptography. This results in a unilaterally distributed and immutable system, enabling stakeholders, such as producers, distributors, retailers, and consumers, to track every step in the supply chain of halal products with accuracy. Furthermore, blockchain technology-based digitization in the halal food industry in Indonesia adheres to the principles of Halal Traceability, Halal Assets Specificity, Halal Quality Assurance, Halal Trust, and Halal Commitments involving multi-stakeholders.

Suggested Citation

  • Mohd Heikal & Abdul Rachman & Muizzudin & Falahuddin, 2024. "Digitalization of Halal Food Supply Chain Management Based on Blockchain Technology," Springer Proceedings in Business and Economics, in: John Fraedrich & Marina Pirtskalava & Tornike Khoshtaria & Hasan Terzi & Mehmet Bayirli & Baker Al S (ed.), Contemporary Business Research in the Islamic World, pages 103-121, Springer.
    • Handle: RePEc:spr:prbchp:978-981-97-5400-7_7
    DOI: 10.1007/978-981-97-5400-7_7
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