The implementation of halal logistics in Indonesia still faces various challenges, especially for small- and medium-sized logistics companies. Halal certification is considered to incur additional costs because companies must segregate halal and non-halal goods. However, the main challenge to implementing halal logistics in Indonesia lies not only in high costs, but also in limited infrastructure and the lack of integrated digital systems that support transparency in the halal supply chain.
“Small and medium-sized companies often view halal logistics as an extra cost. Meanwhile, large companies view halal certification as added value,” said Dr. Liane Okdinawati, a lecturer at the School of Business and Management, Institut Teknologi Bandung (SBM ITB), when presenting her research findings in Bandung (May 25).
The research, entitled “From Policy to Practice: Enhancing Halal Compliance in the Logistics Sector,” secured international funding from The Asahi Glass Foundation Overseas Research Grant 2025. The research examined the implementation of halal logistics in Indonesia and compared it with practices in Malaysia, another country with a significant halal market. Liane chose this theme because halal compliance now applies not only to products but is also beginning to be mandated in the service sector, including logistics services.
“Halal certification was previously focused primarily on products, but the government is now beginning to require halal compliance for services as well, including logistics,” Liane said.
Liane’s research found a notable difference between Indonesia and Malaysia in the implementation of halal logistics. While Indonesia adopts a regulatory approach, Malaysia relies more on market demand and consumer awareness. The study revealed that Indonesian consumers generally have a high level of awareness of halal products, including the importance of halal-compliant logistics processes. However, public trust remains closely tied to government regulations and official certification schemes.
“We found a passive trust. Consumers trust the halal label issued by the government without seeking additional information,” she said.
Liane hopes the results of this research will help develop a more transparent, affordable, and efficient halal logistics certification system for both industry and the public. Going forward, this research is planned to be expanded to include more countries, including Australia, and to incorporate sustainability aspects through the concept of green logistics.
“We want to look not only at the halal aspect, but also at how halal logistics can go hand in hand with sustainable and green logistics,” she said.
Liane encouraged SBM ITB students to actively engage in research, as there are still many research opportunities in Indonesia that can be developed by learning from other countries.
“There are still numerous research opportunities in Indonesia. We can learn from other countries, take their strengths, and avoid their past failures,” she concluded.
