Halal Supply Chain Management
The demand for halal products in Indonesia tend increasingly both from domestics and foreign. In another hand, halal supply chain management in Indonesia is very low for example distributing halal products. Regulation about Halal Supply Chain Management is not arranged clearly. Indonesia Ulama Council (MUI) also didn’t give a formal instruction. Certifications about halal supply chain are required by considering Indonesia as the largest country with the Muslim population in the world, so these regulations need to be calculated clearly in order that UMKM (Micro, Small, Medium Enterprises) couldn’t collapse. Regulation of special transport can be included to regulate halal supply chain management.
Now, small business already has halal certification from MUI so few, approximately 3.000 small business. While, a total of small business and home industry approximately 1,2 million, added medium business as much as 6.000. Law of Halal Product Guarantee (UU JPH), will be implemented in 2019, so this regulation will useless to the small industry because it’s not already to fulfil halal certification. Halal certification of company and logistics supplier in Indonesia is very low. To ensure halal of products until consumer must be started from upstream and downstream, as described by the figure bellow.
The figure shown a representation of Logistics, the supply chain is viewed as a single entity consists a series of fragmented elements such as procurement, manufacturing, distribution. In this area, there are many strategies about the planning process, with a particular emphasis on strategic decision making rather than on the operational cost. Halal Supply Chain Management consists of product, model transport and warehouse. Each of parts from suppliers, logistics, and distributes to customers must be kept not be interfered with forbidden products (haram), to ensure that the products are halal and getting a certificate from the authority in Indonesia (MUI). It still has a great opportunity because the awareness of Indonesia society about halal product tend increasingly, each company which is targeted expanding to Indonesia can get opportunity and profit if they are aware of halal certification. Central to the success of effective halal supply chain management is the use of integrated information system and fully supported from the stakeholder.
