International Journal of Halal Industry

Repositioning the Indonesian halal industry development strategy: SWOT and maqasid al-Sharia integration

2025-10-06T09:50:57+00:00

Purpose – This study aims to identify the strengths, weaknesses, opportunities, and threats that shape the development of the halal industry in Indonesia through the lens of maqasid al-Sharia. It also seeks to formulate strategic recommendations to reposition Indonesia’s halal industry for global competitiveness, while remaining grounded in Sharia values.
Methodology – A mixed-methods approach with an exploratory sequential design was employed, combining qualitative findings from expert interviews and policy documentation with quantitative analysis through IFAS–EFAS weighting and strategic mapping using the internal-external (IE) matrix.
Findings – The halal industry in Indonesia demonstrates major strengths, such as a vast domestic Muslim market, strong regulatory support, increasing halal awareness, abundant raw materials, and potential in halal tourism. However, it faces weaknesses, including inadequate infrastructure, limited human resource capacity, high certification costs, weak institutional coordination, and restricted global access. Externally, the industry benefits from rising global demand, digital transformation, and halal diplomacy but is challenged by intense competition, fragmented standards, and imported product penetration issues. Strategic mapping places Indonesia’s halal industry in a growth quadrant, requiring vertical integration strategies that cover halal supply assurance, human capital development, innovation, inclusive distribution, and global branding.
Implications – The results provide practical insights for policymakers and stakeholders to design integrated, sustainable strategies that strengthen the competitiveness and inclusivity of Indonesia’s halal ecosystem in line with maqasid al-Sharia.
Originality – This study uniquely integrates maqasid al-Sharia perspectives with strategic management tools to develop a holistic framework for sustainable and globally competitive halal industry development.

Muslim-friendly tourism experience and value creation: A study of service innovation in Lombok

2026-02-22T05:06:31+00:00

Purpose – This study aims to analyze how integrating Muslim-friendly tourism experiences contributes to value creation for tourists through service innovation in halal tourism destinations in Lombok. The primary focus of this research is to understand the mechanisms underlying the creation of functional, emotional, and spiritual value through halal-service innovation practices.
Methodology – This study employed a qualitative case study design. Data were collected through in-depth interviews with halal tourism industry actors, destination managers, policymakers, and Muslim tourists, supported by field observations and document analysis. Data were analyzed thematically through coding to identify patterns, meanings, and relationships among concepts relevant to Muslim-friendly tourism experiences and value creation.
Findings – The findings reveal that the availability of halal facilities does not solely determine the integration of Muslim-friendly tourism experiences but is also influenced by service innovations that emphasize interaction quality, service ethics, and the consistency of Sharia values. Service innovation creates functional value in the form of convenience, emotional value in the form of safety and satisfaction, and spiritual value in the form of inner peace and religious closeness for Muslim tourists.
Implications – These findings have practical implications for destination managers and halal tourism industry stakeholders in designing service innovation strategies that prioritize holistic-value creation. Theoretically, this study enriches the halal tourism literature by strengthening the link between Muslim-friendly tourism experiences and service-based value creation theory.
Originality – This research offers an integrative perspective, positioning service innovation as the primary mechanism for co-creating functional, emotional, and spiritual value in halal tourism.

Religiosity and fashion store patronage intention among Muslim consumers

2025-10-09T07:32:13+00:00

Purpose – This study investigates the influence of religiosity, perceived value, and customer satisfaction on patronage intention in the context of a Muslim fashion retail store in Yogyakarta, Indonesia.
Methodology – The research employed a quantitative approach using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. Data were collected using a structured questionnaire administered to 300 customers of Muslim fashion retail stores in Yogyakarta.
Findings – The results demonstrate that religiosity positively and significantly influences perceived value, customer satisfaction, and patronage intention. Perceived value further enhances customer satisfaction and patronage intention, while satisfaction plays a direct role in strengthening patronage intention. These findings highlight the central role of religiosity as a driver of consumer evaluations and behavioral outcomes in Muslim fashion retailing.
Implications – Theoretically, this study extends the application of consumer behavior theories by integrating religiosity into patronage intention models. Practically, the findings provide insights for Muslim fashion retailers to design marketing and service strategies that align with Islamic values, thereby improving perceived value, satisfaction, and loyalty.
Originality – This study contributes to the literature by contextualizing the role of religiosity in shaping patronage intention within the Muslim fashion retail sector in Yogyakarta.

Islamic finance and investment in the halal industry: A systematic literature review

2026-03-20T16:14:55+00:00

Purpose – This study aims to examine the role of Islamic finance and investment in supporting the halal industry’s development by synthesizing existing academic literature on financing instruments, economic impacts, and ecosystem development pathways.
Methodology – A systematic literature review (SLR) was conducted using structured search strategies and selection procedures. Relevant studies were identified from major academic databases and screened using defined inclusion and exclusion criteria. The selected literature was analyzed thematically to identify patterns in Islamic financial instruments, economic outcomes, governance mechanisms and ecosystem development within the halal industry.
Findings – The review reveals that Islamic finance contributes to halal industry development through multiple channels, including Shariah-compliant financing instruments, financial inclusion, regulatory governance, and innovation in fintech. Instruments such as Islamic banking, Sukuk, crowdfunding, and fintech platforms support halal business expansion by improving access to capital and strengthening the halal value chain.
Implications – The findings suggest that policymakers, financial institutions, and halal industry stakeholders should strengthen institutional coordination, improve financial literacy, and develop integrated halal ecosystem frameworks that link financing mechanisms with certification, governance, and market development to promote halal SMEs.
Originality – This study provides a comprehensive synthesis of the fragmented literature on Islamic finance and halal industry development by proposing an ecosystem-oriented perspective that integrates financing instruments, governance structures and halal value chain dynamics.

Indonesia’s halal industry: Opportunities, challenges, and strategic directions

2025-09-17T03:59:14+00:00

Purpose – This study aims to provide a comprehensive analysis of the opportunities, challenges, and strategic frameworks for developing Indonesia's halal industry. It aims to identify the key drivers of growth while simultaneously addressing the fundamental obstacles that hinder its potential.
Methodology – This research employs a descriptive-analytical qualitative approach, utilizing a literature review and content analysis of secondary data. The sources included academic articles, official reports, and policy documents. The data were analyzed to synthesize key themes and formulate a cohesive strategic framework for stakeholders.
Findings – The findings reveal that Indonesia's halal industry possesses significant opportunities, driven by its vast Muslim population, strong government support, and strategic geographical location. However, it faces major challenges, including fragmented inter-agency coordination, a complex halal certification process for MSMEs, and a lack of qualified human resources to implement the program.
Implications – This study offers a practical, integrated strategic model that provides clear policy recommendations for the government and actionable guidance for businesses. The findings are expected to contribute to the academic discourse on the Islamic economy and provide a roadmap for accelerating the growth of Indonesia’s halal industry, positioning the country as a key global player.
Originality – This paper provides a holistic and integrated analysis that bridges the gap in the existing literature by systematically connecting the interplay between regulatory, supply chain, and human resource challenges. It proposes a unique and comprehensive strategic model that offers practical and prescriptive solutions for all stakeholders.