Halal Products Assurance Policy Model and Its Impact on Sustainability Fish Ball SMI with Dynamic System Simulation Approach

Dwi Iryaning Handayani, Haryono Haryono, Tri Prihatiningsih

Abstract


Abstract

Indonesian government requires all products distributed and traded in Indonesian territory are halal certified. However, the ability of Small and Medium Industries (SMI) to implement this law of halal product assurance is relatively low. For this reason, it is crucial to review the application of halal assurance policy on the sustainability of fish ball SMI since fish ball grinding process is usually performed in public places, so that it is relatively risky to be contaminated with non-halal product. The objective of this research is to establish halal product assurance policy model and its impact on the sustainability of fish ball SMI. The approach used to review SMI policy and sustainability model was dynamic system simulation method supported by Vensim software. Dynamic system simulation generates two scenarios; the first scenario was fish ball SMI that applies halal assurance, and the second scenario was fish ball SMI that does not apply halal assurance and standard under the competitor. The simulation result showed that halal assurance gives better market share value that leads to the increasing operational cost variable, followed by the significant increase of business cash and better sustainability in the business. Therefore, the SMI actors will be able to comprehensively understand their obligation to comply with the government regulation which stated that all products distributed in Indonesia are required to have halal certification and it should be able to keep the sustainability of fish ball SMI.

Keywords: dynamic system, halal control point, model, policy, sustainability


Keywords


dynamic system; halal control point; model; policy; sustainability

Full Text:

PDF

References


Ahmed, W., Najmi, A., Faizan, H. M., & Ahmed, S. (2019). Consumer behaviour towards willingness to pay for Halal products. British Food Journal, 121(2), 492–504. https://doi.org/10.1108/BFJ-02-2018-0085

Ali, M. H., & Suleiman, N. (2016). Sustainable food production: Insights of Malaysian halal small and medium sized enterprises. International Journal of Production Economics, 181, 303–314. https://doi.org/10.1016/j.ijpe.2016.06.003

Ali, M. H., Tan, K. H., Pawar, K., & Makhbul, Z. M. (2014). Extenuating food integrity risk through supply chain integration: The case of halal food. Industrial Engineering and Management Systems, 13(2), 154–162. https://doi.org/10.7232/iems.2014.13.2.154

Alqudsi, S. G. (2014). Awareness and demand for 100% halal supply chain meat products. Procedia - Social and Behavioral Sciences, 130, 167–178. https://doi.org/10.1016/j.sbspro.2014.04.021

Ambali, A. R., & Bakar, A. N. (2014). People’s awareness on halal foods and products: Potential issues for policy-makers. Procedia - Social and Behavioral Sciences, 121, 3–25. https://doi.org/10.1016/j.sbspro.2014.01.1104

Ayuniyyah, Q., Hafidhuddin, D., & Hambari, H. (2016). Factors affecting consumers’ decision in purchasing MUI halal-certified food products. Tazkia Islamic Finance and Business Review, 10(2), 122–143. https://doi.org/10.30993/tifbr.v10i2.111

Barlas, Y. (1996). Formal aspects of model validity and validation in system dynamics. System Dynamics Review, 12(3), 183–210. https://doi.org/10.1002/(SICI)1099-1727(199623)12:3<183::AID-SDR103>3.0.CO;2-4

Bastan, M., Khorshid-Doust, R. R., Sisi, S. D., & Ahmadvand, A. (2018). Sustainable development of agriculture: a system dynamics model. Kybernetes, 47(1), 142–162. https://doi.org/10.1108/K-01-2017-0003

Bouloiz, H., Garbolino, E., Tkiouat, M., & Guarnieri, F. (2013). A system dynamics model for behavioral analysis of safety conditions in a chemical storage unit. Safety Science, 58, 32–40. https://doi.org/10.1016/j.ssci.2013.02.013

Capone, R., Bilali, H. El, Debs, P., Cardone, G., & Driouech, N. (2014). Food system sustainability and food security: Connecting the dots. Journal of Food Security, 2(1), 13–22.

Fathi, E., Zailani, S., Iranmanesh, M., & Kanapathy, K. (2016). Drivers of consumers’ willingness to pay for halal logistics. British Food Journal, 118(2), 464–479. https://doi.org/10.1108/BFJ-06-2015-0212

Gillani, S., Ijaz, F., & Khan, M. M. S. (2016). Role of islamic financial institutions in promotion of Pakistan halal food industry. Islamic Banking and Finance Review, 3(1), 29–49.

Halim, M. A. A., & Salleh, M. M. M. (2012). The possibility of uniformity on Halal standards in organization of Islamic Countries (OIC) country. World Applied Sciences Journal, 17, 6–10.

Handayani, D. I., & Haryono. (2018). Rancangan sistem traceability halal pada supply chain makanan untuk industri kecil menengah. In Prosiding Seminar Nasional Agrologistik (pp. 49–56). Bogor: Institut Pertanian Bogor.

Khalid, S. M. N. (2016). Food safety and quality management regulatory systems in Afghanistan: Policy gaps, governance and barriers to success. Food Control, 68, 192–199. https://doi.org/10.1016/j.foodcont.2016.03.022

Maryati, T., Syarief, R., & Hasbullah, R. (2016). Analisis faktor kendala dalam pengajuan sertifikat halal (Studi kasus: Pelaku usaha mikro, kecil dan menengah makanan beku di jabodetabek). Jurnal Ilmu Produksi Dan Teknologi Hasil Peternakan, 4(3), 364–371.

Masruroh, A., Luth, T., Rubai, M., & Sihabuddin. (2017). The state’s role in regulation of halal food product assurance (Comparative study of west and east paradigm). Journal of Law, Policy and Globalization, 66, 130–136.

Ni’mah, A. L., Nur, I., & Aibak, K. (2018). Implementasi Undang-Undang Nomor 33 Tahun 2014 Tentang Jaminan Produk Halal pada Produk Makanan Industri Kecil Menengah (IKM) di Tulungagung. Tesis. Program Studi Hukum Ekonomi Syari’ah. Institut Agama Islam Negeri Tulungagung. Tulungagung.

Nuhoğlu, H., & Nuhoğlu, M. (2007). System dynamics approach in science and technology education. Journal of Turkish Science Education, 4(2), 91–108.

Nurhasanah, S., Munandar, J. M., & Syamsun, M. (2017). Faktor-faktor yang mempengaruhi minat beli produk makanan olahan halal pada konsumen. Jurnal Manajemen Dan Organisasi, 8(3), 250–260.

Nuryati, S. (2008). Halalkah Makanan Anda? Awas, Produk Haram Mengepung Kita! Sukoharjo: Aqwamedika.

Nusran, M., & Jamaran, I. (2015). The Policy Model of Halal Certification Using Simulation Approach of System Dynamics. Tesis. Fakultas Teknologi Industri. Asia e University.

Omar, E. N., & Jaafar, H. S. (2011). Halal supply chain in the food industry - A conceptual model. In 2011 IEEE Symposium on Business, Engineering and Industrial Applications (ISBEIA) (pp. 384–389). IEEE. https://doi.org/10.1109/ISBEIA.2011.6088842

Orji, I. J., & Wei, S. (2015). Dynamic modeling of sustainable operation in green manufacturing environment. Journal of Manufacturing Technology Management, 26(8), 1201–1217. https://doi.org/10.1108/JMTM-11-2014-0120

Pujianto, T. (2014). Perancangan sistem informasi ketelusuran pada rantai pasok produk halal berbasis olahan daging sapi: Studi kasus pada rantai pasok bakso sapi kemasan. In Forum Tahunan Pengembangan Iptek dan Inovasi Nasional (pp. 33–39). Jakarta: Pusat Penelitian Perkembangan Ilmu Pengetahuan dan Teknologi Lembaga Ilmu Pengetahuan Indonesia.

Rahmat, S., Chew, B. C., & Hamid, S. R. (2014). Green and sustainability protocol development in halal food industries. In International Symposium on Research in Innovation and Sustainability (pp. 1–5). Malaka: Universiti Teknikal Malaysia.

Ramlan, & Nahrowi. (2014). Sertifikasi halal sebagai penerapan etika bisnis islami dalam upaya perlindungan bagi konsumen muslim. Ahkam: Jurnal Ilmu Syariah, 14(1), 145–154.

Rezai, G., Kit Teng, P., Mohamed, Z., & Shamsudin, M. N. (2013). Consumer Willingness to Pay for Green Food in Malaysia. Journal of International Food & Agribusiness Marketing, 25(sup1), 1–18. https://doi.org/10.1080/08974438.2013.798754

Riaz, M. N., & Chaudry, M. M. (2004). The value of halal food production. International News on Fats, Oils, and Related Materials, 15(11), 698–700.

Richardson, G. P., & Pugh, A. L. (1986). Introduction to system dynamics modeling with DYNAMO. London: MIT Press.

Shamsuddoha, M. (2015). Integrated Supply Chain Model for Sustainable Manufacturing: A System Dynamics Approach. In Sustaining Competitive Advantage Via Business Intelligence, Knowledge Management, and System Dynamics (pp. 155–399). Britania Raya: Emerald Group Publishing Limited. https://doi.org/10.1108/S1069-09642015000022B003

Sholichah, W., Vanany, I., Soeprijanto, A., Anwar, M. K., & Fatmawati, L. (2017). Analisis risiko makanan halal di restoran menggunakan metode failure mode and effect analysis. Jurnal Ilmiah Teknik Industri, 16(2), 150–156. https://doi.org/10.23917/jiti.v16i2.4941

Skandhakumar, N., Reid, J., Salim, F., & Dawson, E. (2018). A policy model for access control using building information models. International Journal of Critical Infrastructure Protection, 23, 1–10. https://doi.org/10.1016/j.ijcip.2018.08.005

Soon, J. M., Chandia, M., & Regenstein, J. Mac. (2017). Halal integrity in the food supply chain. British Food Journal, 119(1), 39–51. https://doi.org/10.1108/BFJ-04-2016-0150

Stitou, N., & Rezgui, H. (2012). The Muslim Consumer as the Key Player in Halal. Grenoble: ASIDCOM.

Waharini, F. M., & Purwantini, A. H. (2018). Model pengembangan industri halal food di Indonesia. Muqtasid: Jurnal Ekonomi Dan Perbankan Syariah, 9(1), 1–13. https://doi.org/10.18326/muqtasid.v9i1.1-13

Wahyuni, H., Vanany, I., & Ciptomulyono, U. (2019). Food safety and halal food in the supply chain: Review and bibliometric analysis. Journal of Industrial Engineering and Management, 12(2), 373–391. https://doi.org/10.3926/jiem.2803

Xu, Y., & Szmerekovsky, J. (2017). System dynamic modeling of energy savings in the US food industry. Journal of Cleaner Production, 165, 13–26. https://doi.org/10.1016/j.jclepro.2017.07.093

Yunos, R. M., Mahmood, C. F. C., & Mansor, N. H. A. (2014). Understanding mechanisms to promote halal industry-The stakeholders’ views. Procedia - Social and Behavioral Sciences, 130, 160–166. https://doi.org/10.1016/j.sbspro.2014.04.020




https://doi.org/10.21776/ub.industria.2020.009.01.6

Refbacks

  • There are currently no refbacks.