Strategies for Strengthening Halal Industries towards Integrated Islamic Economic System in Indonesia: Analytical Network Process Approach

Author : Euis Amalia (Universitas Islam Negeri Syarif Hidayatullah Jakarta), Nur Hidayah (Universitas Islam Negeri Syarif Hidayatullah Jakarta)

Abstract : The halal economy has become a crucial issue in the context of the development of the global Sharia economy. The halal economy is a holistic concept and integral to Sharia values. One of the problems facing the halal economy is the absence of an integrated system between the halal industries and Islamic finance in Indonesia.

This research aims to investigate the problems contributing to the divergence of the halal industries from Islamic finance in Indonesia and find solutions in the form of strategic priorities. Data obtained through in-depth interviews and focused discussions with ten experts. It reveals that the main problems are regulation, human resources, institutional building, services and information technology (IT), sharia issues and public awareness.

By using the analytical network process (ANP) approach, it finds that the rater agreement value of W = 0.5514, meaning that 55.14% of respondents agree the problems are, based on the order of priority, regulations (17.4%), services and IT (17.0%), institutional building (16.6%), human resources (16.4%), Sharia Issues (16.4%) and public awareness (16.3%).

As for alternative priority strategies, the rater agreement shows the value of W = 0.5754, meaning that 57.54% of respondents agree the three main alternative strategies for building the integrated halal industries in Indonesia, namely, strengthening regulations and policies (13.8%), building halal lifestyle (13.3 %) and strengthening human resource capacity (12.7%).

It concludes that the regulatory and policy aspects rank first and foremost priority for the development of an integrated Sharia economic system. All stakeholders need to strengthen regulatory and policy aspects so that they are responsive for the development of the halal industries in Indonesia to be able to compete at the national and global levels.

Keywords: ANP, halal industries, integrated Islamic economic system, strategy alternatives, Indonesia.

Journal : Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah, Volume 12 Issue 1 2020

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