Lecturer, STIE YPUP Makassar
Keywords: Halal Economy, Maqasid al-Shariah, Sustainable Value Chain (SVC), Transformation Imperative.
WIN Media, Opinion – The introduction highlights the immense potential of Indonesia’s halal economy, valued at trillions of rupiah, yet hindered by a lack of sustainability in its Sharia supply chains. SVC which integrates economic, social, and environmental value, presents a strategic solution to fulfill maqasid syariah (the objectives of Islamic law) while supporting the SDGs. This opinion piece calls for immediate transformation to prevent Indonesia from falling behind in the global halal market.
Current Issues in Sharia Supply Chains
Sharia supply chains often focus solely on halal certification, overlooking critical sustainability aspects such as excessive waste and carbon emissions from halal logistics.
Key challenges include a lack of traceability, dependence on unsustainable raw materials, and the high cost of certification which burdens SMEs.
Consequently, a paradox emerges: halal products may end up harming the environment, contradicting Sharia principles on nature preservation.
The Concept of Sharia SVC Strategy
Sharia SVC integrates core halal principles (thaharah/purity, prohibition of riba/usury, transparency) with the three pillars of sustainability: economic (cost efficiency), social (worker welfare), and environmental (zero waste).
Core strategies include implementing blockchain for halal traceability, utilizing Sharia-compliant financing for green investment, and adopting integrated halal-green certification. This approach ensures sustainable added value from upstream to downstream.
Benefits and Practical Implementation
Adopting a Sharia SVC strategy can boost the competitiveness of Indonesia’s halal exports by up to 30%, while simultaneously reducing contamination risks and emissions. Implementation steps include: collaboration between the government, the Halal Product Assurance Agency (BPJPH), and industry players to develop an SVC roadmap; digital training for SMEs; and tax incentives for green supply chains.
Successful models from countries like Malaysia can be adapted for local contexts in sectors such as halal food and cosmetics.
Transformation Imperative
Sharia SVC is not merely a trend but a moral and economic imperative for future generations. The government, businesses, and religious scholars must synergize immediately; otherwise, Indonesia risks losing its momentum as a global halal hub. It is time to transform Sharia supply chains into a global model of sustainability.
Indonesia’s halal economy holds extraordinary potential, valued at trillions of rupiah, driven by global demand for Sharia-compliant products. However, the current Sharia supply chain often fixates solely on the aspect of halalness, neglecting the environmental and social sustainability that is core to maqasid syariah.
The Sharia Sustainable Value Chain (SVC) strategy emerges as a holistic solution, integrating principles of trust (amanah), justice (‘adl), and environmental preservation to create a supply chain that is not only halal but also sustainable in the long term (Minu et al., 2025).
Sharia supply chains in Indonesia face a striking paradox: halal products may contribute to environmental degradation through excessive waste, carbon emissions from inefficient logistics, and dependence on non-regenerative raw materials. A lack of traceability from upstream to downstream allows for the risk of haram contamination, while high certification costs burden the SMEs that dominate this sector.
This phenomenon contradicts Islamic teachings on hifz al-bi’ah (environmental preservation), where the exploitation of nature is considered a form of israf (wastefulness). As a result, the competitiveness of Indonesia’s halal exports is hampered amidst intense competition from countries like Malaysia and Turkey (Ali & Suleiman, 2024).
Sharia SVC offers an integrated framework that unites the three pillars of sustainability (economic, social, and environmental) with Sharia values such as thaharah, prohibition of riba, and full transparency. Unlike conventional value chains, SVC emphasizes maqasid al-shariah like hifz al-din (protection of religion) and hifz al-mal (protection of wealth) through technologies such as blockchain for real-time tracking and Sharia-compliant financing for green investment.
Every stage of the supply chain, from raw material sourcing to distribution, is designed to generate sustainable added value, ensuring halal integrity is maintained while reducing carbon footprints by up to 25% through logistics optimization (Minu et al., 2025; Kuncorosidi et al., 2024).
The benefits of Sharia SVC are unparalleled: a potential increase in operational efficiency of up to 30%, reduced contamination risk, and broader access to global markets thanks to integrated halal-green certification. On the ground, implementation can begin with supply chain mapping by BPJPH in collaboration with industry, followed by digital training for SMEs via IoT platforms for zero-waste monitoring.
Tax incentives for actors in green supply chains would accelerate adoption, while collaboration with religious scholars ensures Sharia compliance. Malaysia’s successful case in sustainable halal cosmetics proves this model can be replicated in Indonesia, especially in food and pharmaceuticals, generating a multiplier effect on employment and GDP (Talib et al., 2021).
Sharia SVC is not an option but a moral and economic imperative in an era of climate crisis and digitalization. The government, businesses, and the Muslim community must synergize immediately: formulate a national SVC roadmap within the Halal Bill, allocate sharia green funds, and campaign for transparency as a collective trust (amanah).
If delayed, Indonesia risks losing its potential supremacy in the global halal arena. It is time to transform Sharia supply chains into a beacon of global sustainability, realizing a true rahmatan lil ‘alamin (blessing for all creation).