Digitalization of Halal Food Supply Chain Management Based on Blockchain Technology

Mohd Heikal (), Abdul Rachman (), Muizzudin () and Falahuddin ()
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Mohd Heikal: Universitas Malikussaleh
Abdul Rachman: Cendekia Abditama University
Muizzudin: Cendekia Abditama University
Falahuddin: Universitas Malikussaleh

A chapter in Contemporary Business Research in the Islamic World, 2024, pp 103-121 from Springer

Abstract: 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.

Keywords: Digitalization; Chain; Halal; Blockchain; Technology (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/978-981-97-5400-7_7

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