International Journal of Technology Management and Information System (IJTMIS) eISSN: 2710-6268 [Vol. 1 No. 1 September 2019]
Journal website: http://myjms.mohe.gov.my/index.php/ijtmis
HALAL LIFESTYLE IN A DIGITAL PLATFORM: ONE STOP SOLUTION APPLICATION CONCEPT
Caesar Pratama1*, Sunardi2, Ativa Hesti Agustina C3 and Sri Sundari4
1 3 4 Defense Management Faculty, Indonesia Defense University, Bogor, INDONESIA
2 Defense Strategy Faculty, Indonesia Defense University, Bogor, INDONESIA
*Corresponding author: [email protected]
Article Information:
Article history:
Received date : 12 July 2019 Revised date : 23 August 2019 Accepted date : 28 August 2019 Published date : 22 September 2019
To cite this document:
Pratama, C., Sunardi, S., Agustina C, A.,
& Sundari, S. (2019). HALAL LIFESTYLE IN A DIGITAL
PLATFORM: ONE STOP SOLUTION APPLICATION CONCEPT.
International Journal Of Technology Management And Information System, 1(1), 11-20.
Abstract: This research will focus on halal lifestyle as a market segment of various products to fulfill the needs of the Indonesian people. This is based on the fact that Indonesia currently has the potential with the large number of people who embrace with Islam, so that Indonesia is dominated by Muslim residents who are concerned about halal products. But in reality Indonesia is still ranked 10th out of 15 countries that have developed a halal ecosystem. In addition, the level of consumption of the Indonesian people towards internet usage tends to be high, especially for millennial generations. The utilization of halal lifestyle products will ultimately increase state revenues due to increased consumption. But now the situation and the potential for the development of halal lifestyle ecosystem have not been optimally empowered properly and they are required to be able to adjust increasingly advanced technological. This research was conducted using the SWOT approach to get answers the importance ofproviding products through the concept of halal lifestyle in Indonesian society. The results of the study shows that there are opportunities and a large market share for Indonesia by using communication technology, especially the internet, which can provide a one stop solution in the form of halal lifestyle applications to increase the resilience of the national economy.
Keywords: Halal Lifestyle, Halal Application, E- Commerce, SWOT.
1. Introduction
People's knowledge in understanding national cultural values tends to decrease, so that it will give result in weakening individual resilience as a bastion in facing global culture values. One of the cultural values is held firmly by the community related to the delivery of religion. Islam is one of the religion which widely adopted by the world's population. Islam is embraced by more than 1.6 billion people or 20% of the world's total population and the world Muslim consumer market reaches 2.7 trillion USD [1]. Indonesia, based on Pew Global Research in 2010 is the largest country in the world in the category of population and the majority of the Muslim population in the world, so that Indonesia is a potential market for various producers of halal goods and services. Halal lifestyle ecosystem consists of halal food, pharmaceuticals, cosmetics, halal travel, Islamic financial, and halal media.
Table 1: Muslim Communities Expenditures in Indonesian and in the world for Halal Life Style
Indonesia has potential to develop a halal product ecosystem, but it has not been well optimized.
The data below shows that Indonesia has not been able to make a significant contribution.
Indonesia still ranks 10th among 15 other countries. This rank is measured by the Global Islamic Economy Indicator (GIEI) which shows the latest conditions regarding the development of the Islamic economic ecosystem. GIEI is measured through indicators of halal ecosystem products
Sector Halal Life style
Indonesia’s Moslem
Global Moslem
Market Share (%)
Food US Dollar 190,4
Billion
US Dollar 1,292 Billion
14,7 Finance US Dollar 36 Billion US Dollar 1,214
Billion
3 Travel (Excl. Hajj &
Umrah)
US Dollar 7,5 Billion US Dollar 140 Billion
0,6 Fashion US Dollar 18,8 Billion US Dollar 266
Billion
7 Media & Recreation US Dollar 9,37 Billion US Dollar 185
Billion
5 Pharmaceuticals US Dollar 4,88 Billion US Dollar 72
Billion
6,7 Cosmetics US Dollar 3,44 Billion US Dollar 46
Billion
7,4
Table 2: Global Islamic Economy Indicator for Several Countries
Top15 countries
GIE indicator
score
Halal Food
Halal Travel
Islamic Finance
Modest Fashion
Halal Media and Recreation
Halal Cosmetics
Malaysia 121 55 70 139 25 38 61
UEA 86 92 81 92 67 137 78
Bahrain 66 90 30 90 26 68 36
Saudi Arabia
63 83 35 83 17 33 48
Oman 48 51 36 51 16 40 40
Pakistan 45 47 11 47 19 8 52
Kuwait 44 51 29 51 13 45 29
Qatar 43 47 35 47 15 46 32
Jordan 37 36 39 36 19 31 49
Indonesia 36 38 35 38 21 9 41
Singapore 32 22 44 22 26 75 56
Brunei 32 27 22 27 12 30 39
Sudan 28 30 23 30 5 17 23
Iran 28 30 36 30 10 20 27
Bangladesh 26 31 10 31 25 3 25
Source : State of the Global Economic Report (2018)
In 2020 until 2030 Indonesia will have a demographic bonus. In this period there will be a large number of young and productive population, the number of productive age population can penetrate 40 percent of the total population of Indonesia[2]. This fact causes Indonesia to be faced with the existence of a large number of millennials. Millennial is the first generation that holds digital native, which means that the use of technology is the most important thing in the millennial generation era. The development of halal products will certainly have an impact on increasing the country's income or GDP, it caused the level of public consumption will certainly increase which ultimately increases state revenues. This concept is also part of the concept of defense economics.
The higher state income, the greater the defense budget will be given.
Therefore, the development of halal-based products and services to fulfill individual needs by using digital platforms is an appropriate way to support the country's economy and defense. The problems found from the description above, formation and application of halal lifestyle ecosystems in Indonesia is still low. This is an evident from the Global Islamic Economic report, Indonesia ranks 10th, far below Malaysia which has fewer Muslim populations. Indonesia's large market share makes halal lifestyle opportunities wide open. Some examples are Indonesia has a lot of traditional food which is certainly in the form of halal food, which has a lot of bagged halal product certificates, and Islamic finance using a dual banking system. It is hoped that the Islamic electronic platform as a unifying tool for a halal ecosystem can be one of the models to provide opportunities for entrepreneurs, communities and the government to improve the market for halal products because in the era of globalization all information was easily obtained through technology, and high interaction through the internet by millennial generations also become an opportunity.
2. Literature Review 2.1 Halal – Haram Theory
The application of halal and haram principles in Indonesia is very important because Indonesia has market power for halal products. According to Al-Qardawi [3] (2001) that the only criterion for defining halal and haram is contained in the Al-Qur’an command which was revealed by Allah SWT. Besides that, there are several reasons for halal and haram such as: (i) a form of love for Allah SWT; (ii) so that prayer is not prohibited; (iii) prevent hellfire as contained in Qs. Tahrim 6;
(iv) not following Satan's steps; and (v) preventing the occurrence of disease, interpreted from Qs.
Nissa verse 4 [4]. Halal means everything that is permissible in Islam while haram means things that are prohibited in Islam. Halal and haram have been clearly mentioned by Allah SWT, in principle everything that is definitely good, however, there is still little knowledge and understanding of halal among Muslims, especially halal business entrepreneurs.
2.2 Halal Lifestyle Theory
Lifestyle is a patterned way of using, understanding, and rewarding material cultural artifacts in social contexts [5]. Lifestyle can be interpreted as a symbol of these artifacts with the intention of being seen to present the identity existence of a lifestyle. Thus, lifestyle is patterned ways to invest in certain aspects of life. Several components of Halal Lifestyle are including fashion, food and beverage, tourism, pharmaceuticals, cosmetics, Islamic financial, and halal media and etc. Halal lifestyle is a pattern that prioritizes halal products toused, because it is related to the needs of human life. Some definitions of halal lifestyle are:
a. Muslim consumption, halal lifestyle is defined as the needs and beliefs of Islam to fulfill homogeneous needs [6]
b. Wisdom (wisdom). In Islam, the halal lifestyle concept is part of the strategy to be achieved [7]
c. Halal "tayyibat" products that are useful, pure, safe, lawful, and useful (Qs. 2; 172, and 2:
168)
d. Welfare to achieve falah, success and prosperity (Qur'an 2: 201) 2.3 Maqashid Syariah Theory
Maqashid al-Syarî‘ah is consist of two words, Maqâshid and al-Syarî‘ah. Based on etymologically, Maqshid is the plural form of the word maqshid, which is formed from the letters qâf, shâd and dâl, which means intention or purpose. Whereas the word al-shariah is etymologically derived from the word syara'a, yasyra'u syar'an which means making the shari'a or law, explaining and declaring. According to al-Syathibi[8], this goal can be achieved by humans through two things, first fulfilling the demands of sharia (taklif), namely in the form of efforts to create it (form) by carrying out the command (awamir) and nurturing (ibqa) from its destruction by avoiding watching. in the Shari'ah. Basically the purpose of the sharia (law) of maqashid sharia is the benefit of maslahah.
3. Research Methodology
This study used qualitative research methods. Qualitative research is a type of research who produces discoveries that cannot be achieved using statistical producers or other methods of quantification. Qualitative research aims to understand social reality, which is to see a phenomenon. One of the qualitative studies can be defined with the SWOT Approach (Strength, Weakness, Opportunity and Threats). The SWOT approach is an approach that emphasizes evaluating projects by understanding existing situations and information, and the oriented towards internal and external factors that aim to find the right solution by knowing strengths, weaknesses, opportunities and threats. If a SWOT approach has been analyzed, strength will be formed to give the best solution.
4. Results and Discussion
Based on the background and previous problems which stated, Indonesian population is dominated by millennial generation and internet usage is quite high, it can provide opportunities to create large market segments to fulfill the needs of halal lifestyles which will ultimately increase consumption and national income. SWOT analysis is useful for giving important priority to selected halal lifestyles segment and gives priority in achieving maqashid sharia and increasing national income.
Table 3. SWOT Approach
Internal Factors
External Factors
Strength :
- Large population of teenagers and children
- Big potential of High halal lifestyle market share - High internet usage
Weakness :
- Resources are not explored properly
-The Internet not using properly - There are not many halal lifestyle
users
Opportunities : - The largest Muslim population in Southeast Asia and the world
- Millennials tend to use the Internet intensively
- Increasing public consumption will increase national income
SO :
Creating a new halal lifestyle market segment for young people through digital platforms that can increase public
consumption and national income.
OW :
Creating a market share of education in the millennial generation through the use of the internet as a means of promotion
Threats :
- Threat of national security
- misuse of internet use
- Teenagers are
unproductive and tend to be consumptive
TS :
Creating a halal lifestyle ecosystem for the younger generation by utilizing internet use
TW :
Creating digital based education for understanding lifestyle halal-based (sharia)
The SWOT analysis shows a direction for the importance of digital platforms in developing a halal lifestyle ecosystem with a standard approach (Table 3). Some strengths are identified through the SWOT table above. Internal factors that influence the existence of halal lifestyle in the strenght
Creating a new market segment of halal lifestyles in an ecosystem for millennial youth through the internet and gadgets is very important to provide benefits for the attainment of Islamic law, besides being able to fulfill sharia principles in everyday life, young people use the internet in developing this halal lifestyle ecosystem also become part of the needs in the era of globalization.
A significant opportunity and a major contribution is the potential for increasing state revenues through the development of halal ecosystem digital platform.
The SWOT approach, in addition to providing an overview of the strengths and opportunities faced, also illustrate a high Muslim population and high ability to use the internet can pose a threat in the form of improper use of internet services. However, the negative impact of internet usage can be minimized by creating a major internet education or education, as well as special socialization of the development of a digital platform for halal lifestyle ecosystems, so that strengthening the establishment of halal lifestyle applications is important to implement.
4.1 Halal Lifestyle Platform Implementation (One Stop Solution Concept)
The establishment of a halal ecosystem digital platform is inseparable from the marketing aspect, which can also be focused on creating a marketing system that complies with sharia rules.
Marketing can be defined as a social process when individuals or groups get what they need and want, through the creation, provision and exchange of goods and services that have certain values with other individuals or groups freely, Halal Marketing can be defined as a social process in which individuals or groups can obtain what they need and want through the creation, provision and exchange of goods and services that have certain values with other individuals or groups in accordance with the rules and guidelines established by Islamic Sharia Compliance. Halal products are ready on the market today, but they are need to require unique and different marketing methods while maintaining marketing aspects in accordance with sharia principles. However, currently there is no halal product platform to include various e-commerce companies that sell halal products. This is led to a lack of integrated halal products that made consumers hesitant in fulfilling their daily needs for products with halal certification.
The use of halal products is important because this is one way to maintain Islamic maqashid for Muslims. These needs are generally the needs of all people, but in the context of halal products in this specification it is very close to millennial, as we can see from many influencers and community leaders who began campaigning for halal lifestyles, especially on social media. So the marketing method must use methods that are familiar with the millennial generation, such as social media and gadget.
Figure 1. Halal Ecosystem Application
This application uses the concept of one stop solution based on product categorization. it means that with this one application people can access the needs of various halal-certified products. This application also combines several e-commerces that provide halal products which are often used as halal lifestyles. In addition to daily needs, this application also provides needs such as home, car, Hajj, Umrah, and travel, if people need financing for these needs, this application will be linked to Islamic financial institutions, so this application is not only integrated with E- commerce, but also other part that support the concept of one-stop solutions such as Islamic financial institutions such as banks and insurance.
5. Conclusions
The Creation of halal lifestyle ecosystem concept based on digital platforms is closely related to the millennial generation, it caused by the tendency to use technology, especially internet usage which is quite high. It is going to be a challenge and opportunity. The internet will be a challenge if it is misused and plunged into negative things, and becomes an opportunity when used properly.
Legal exposure to lifestyle with internet use is a solution to wise internet use. The halal lifestyle is related to the part of the Muslim community and it must be upheld to achieve maqashid sharia.
Halal lifestyle need to be developed on a platform given that lifestyle needs are increasingly important.
The halal lifestyle platform is one of the best solutions to provide all the halal lifestyles which every Muslim must have. The halal ecosystem application platform makes it easy to support the halal lifestyle that is currently truly considered important because of the industry 4.0 everything can be oriented to the internet of things. In the end, increasing public consumption of halal products through the digital platform will increase national income.
Acknowledgement
The researchers express highest gratitude to our God, Allah SWT for blessing and mercy to complete this research. This research entitled “Halal Life Style in a Digital Platform: One Stop Solution Application Concept to Encourage National Defense Economy” is submitted Penang International Conference on Multi-Disciplinary Research (PICM 2019).
In arranging this research, a lot of people have provided motivation, advice, and support for researchers. In this valuable chance, the researchers intended to express the gratitude and appreciation to all of them. First of all, deepest appreciation goes to our Dept Head of Defense Economics study, Mr Supandi Halim for all support. Second, the researchers present his sincere appreciation to all of part Indonesia Defense University, especially for the lecturer in faculty of Defense Management, for the supervision, advice, guidance from the very early stage of this research, as well as giving me extraordinary experience.
Finally, I would like to thank to everybody who was important to the successful realization of this research. This research is far from perfect, but it is expected that it will be useful, not only for the researcher, but also for the readers. For this reason, constructive thought full suggestion and critics are welcomed.
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