Understanding Concept of Halal Industry
Introduction
Economic growth is understood as the ability of the state to continue
to maintain or increase capacity to meet the economic needs of the people and
the state. One indicator of economic growth is the high production of goods
and services produced by a region.
The current global market conditions when based on the needs and
preferences of many Muslim around the world have given rise to strong
competition in the industry. This creates opportunities for companies,
especially in emerging markets to take advantage of the halal product market.
The halal industry sector is increasingly attracting the attention of policy
makers and entrepreneurs as an industry with increasing growth potential. This
fact shows that the halal industry has attracted many countries such as
Thailand, Singapore, and the Philippines who are aware of the development
of halal products. Other countries such as Australia and the Unites States are
also scrambling to take this opportunity to become producers of halal products.
Data on the population and purchasing power of Muslims around the
world today show an increase and strengthening of halal lifestyle trends
among them. For the 1,6 billion Muslim population, halal lifestyle is becoming
a new pattern. This is reinforced by the State of the Global Islamic Economy
2022 which reports that current halal business and industry trends continue to
show progress, including businesses in the halal food sector, halal tourism,
halal media and recreation, halal pharmaceuticals and cosmetics. Currently,
halal coverage is not only the food aspect, but the entire aspect of daily human
life. Included in the Islamic financial industry. Bank the halal industry in
global trade continues to increase, both on the demand and supply sides. This
development is actually based on the increasingly selective muslims in sorting
products that clearly must be in accordance with their teachings so that halal
can be better maintained. Because as a muslim, before consuming anything he
is obliged to ascertain the legal status of the food or drink he consumes and
the services he uses.
Halal is a term that refers to objects or actions that are allowed to use
or engage under Islamic law. Halal in Arabic means permitted. Generally, the
term halal is used in relation to food, but the concept of halal applies to all
aspects of life. No longer just a religious obligation or observance for muslims,
halal has become a powerfull market force, becoming an increasingly
worldwide phenomenon for both muslims and non-muslims. The addition of
“halal” to a product is not only a guarantee that it is permissible for muslims,
but also a global symbol for quality assurance and lifestyle choices. This is
evident by the participation and involvement of non-muslim countries. Many
western countries have recognized the growing global trend in consumerism
towards halal products and services, and have now been vying for a foothold
in the halal industry. The sizable and growing muslim consumers market
worldwide will continue to drive the growth of the halal industry and create a
plethora of opportunities in the market for halal products and services.
Industry it self is an economic activity that processes raw goods, raw materials,
semi-finished goods or finished goods to be used as goods of higher use. So
the Halal Industry is an industrial activity that starts from the acquisition of
raw materials, processing, to producing halal products must use resources and
in a way permitted by Islamic law. Currently, the government has also required
business actors to have halal certification for their processed products
(Regulation of the Minister of Religious Affairs of the Republic of Indonesia
Number 20 of 2021).
The demographics of Muslims have undergone significant changes in
recent years. The growing Islamic consumerism among urban middle-class
muslims in countries with large muslim populations such as Indonesia,
Pakistan, and Turkey has set a new trend in the halal market. This is reflected
in the proliferation of increasing religious-themed products and services
including banking, tourism, and fashion. Therefore, modern muslims using
halal products are not only acceptable from a religious point of view, but also
they instill a sense of pride and confidence. The halal industry in Indonesia
has become one of the most competitive industries and has promising business
industry prospects. The factors are internal social and political forces in
Indonesia with the largest muslim population in the world and the obligation
to issue halal certification to producers.
That’s why this paper is compiled in order to find out more about the
concept of the halal industry and how the development of the halal industry
today. Book writing is also a form of disseminating information to the public
in the academic environment, as well as in the wider community. For this
reason, we as part of the academic community present a bookchapter as a form
of implementation of the Tri Dharma of Higher Education. “Economic
Bookchapter Volume 1” consist of eight chapters written by Lidia Desiana,
S.E., M.SI; Aryanti, S.E., M.M; Fernando Africano, S.E.I, M.SI; Muhamad
Rahman Bayumi, S.E., M.E; Sri Delasmi Jayanti, S.E., M.Si; Aziz Septiatin,
S.E., M.Si; Rachmania, S.E., M.Si; Bunga Mar’atushalihah, S.E., M.A; Alvin
Laili Qomariyah; Muhammad Tegar Pratama; Amelia's partner; Popi Marsela;
Desti Fitri Hotimah; Wardatul Ummi Weka Putri; Vinka Cindy Meidelin;
Afifah Nuraisyah; and Della Delvia.
The presence of a book chapter entitled Understanding Concept Of
Halal Industry compiled by several students and lecturers of UIN Raden Fatah
Palembang is very important to read and apply. This Book Chapter explains
the concept of halal industry in the fields of Islamic finance, halal food and
beverages, halal fashion, sharia pharmaceuticals and cosmetics, Muslim-
friendly tourism, sharia media and entertainment and halal certification. The
author realizes that this bookchapter is still not perfect, so the author accepts
constructive suggestions. Hopefully this bookchapter will be usefull for
readers.
Conclusion
Regardless of religious background, the world has witnessed the
growth potential of Halal Economy. The concept of halal is no longer just
limited to the food sector but has reached various other sectors such as the
fashion industry, pharmaceuticals, cosmetics, tourism, media and
entertainment both muslim and non-muslim. There is also the development of
the Islamic financial industry and the existence of halal certification. Increased
awareness and product quality are the main reasons behind the development
of the halal industry.
The halal industry has now evolved from food products to a holistic
halal concept that encompasses all values that have commercial value. It has
become a global symbol of quality assurance as well as lifestyle choices for
muslims and non-muslims alike. Halal products are gaining wider recognition
not only because they meet the requirements of sharia, but also aspects of
hygiene, sanitation and safety. Currently halal is a global trend, many countries
are competing to become the center of the world’s halal industry. The concept
of the halal industry in global trade is that the halal context is not only limited
to consumption, but also the entire production process and services connected
in the supply chain. The halal industry must include all lines of operation such
as packaging, marketing, manufacturing, logistics, supply, maintenance,
slaughter, and various other activities from beginning to end. Halal
certification also provides assurance to all muslims that the product complies
with sharia law and for non-muslims that halal products are quality products
based on the concept of Halalan Toyyiban.
Each country has special institutions and regulations that deal with
halal certification of a product. Currently, the halal industry in global trade has
developed significantly in every muslim country, even in non-muslim
countries. The concept of Islamic values which is a fundamental aspect in the
halal industry is not only associated with products and services, but also
becomes a new style of human life. Therefore, the halal industry as a new
phenomenon of the world economy should be used as a new paradigm,
especially in world production and consumption practices.
