The development of Information System through E-commerce in Halal Industry


By : Puspita Dewi (Department of Research and Development SEF UGM)
Information is an essential part of every activities that all people desire to do. Without information there will be no significant development of human behavior, technologies and business process. Now, the world have reached to a time when abundant of information is available to many people, largely and rapidly through computer and other device technologies. The occurrence of this era in Indonesia can be seen through the user of internet. Indonesian internet user in 2016 reach 132.7 million, which are 50.7% using smartphone and computer, 47.6% using smartphone only and 1.7% using computer only, from total population 256.2 million (APJII, 2016)That means more than half of the total population are using internet in their routine activities. The increasing of internet user lead to the increasing of e-commerce in Indonesia. In 2016, e-commerce in Indonesia have reached 26.2 million. There are 17% increase in e-commerce activities within these 10 years (BPS, 2016).

What is Information system?
Information system is a combination of people, hardware, software, communication networks, data resources, and policies and procedures that stores, retrieves, transforms, and disseminates information in an organization. The fundamental roles of information system in business are supporting business process and operations, supporting business decision making, and support strategies for competitive advantage. In most retail stores, Information system support business process and operation such as record sales, keep track of inventory, payment to employees, and record purchased. Information system aiding decision maker to make better decision for example decision about lines of merchandise should be added and what kinds of investment should be done after seeing an analysis provided by computer. To gain competitive advantage, enterprises require to be innovative. Information system help them to develop innovative strategies for example touch-screen kiosks at all stores which can link to e-commerce. (O’Brien, A, & M, 2013)

How Halal Industry react to the development Information System?
One fundamental role of information system is supporting innovative strategies through e-commerce. All kinds of product have been market through e-commerce including halal products. The halal product platform only provides products which are halal certified by each country authority. In response to the increasing rate of global Muslim markets which is estimated to reach $3.7 trillion in 2019, enterprises in halal industry try to make better use of e-commerce. Alladin Group Singapore launched as a platform that facilitate customer both acquiring halal premium products and facilitating e-marketplace for business-to-business (B2B) and business-to-customer (B2C) markets. For food product, help dinners in searching, booking and reviewing halal restaurant which are available in Singapore, England, Birmingham, Manchester and Bangkok. Moreover, have collaborated with online restaurant reservation service Quandoo to launch an app so that customer will get better access for suitable dining restaurant. Indonesia itself have agreed cooperating with Malaysia through This platform facilitates buyers to meet suppliers or other e-commerce partners by displaying halal products from both Malaysia and Indonesia.

The vast growing of internet user is a good opportunity for e-commerce to take place. Most enterprises especially halal industry are focusing to enhance their business competitive advantage through e-commerce nowadays. With the increasing rate of global Muslim market, the availability of halal products by e-commerce platform in all markets can benefit both customer for easier access and enterprises for gaining competitive advantage in the industry.

O’Brien, A, J., & M, M. G. (2013). Introduction to Information System 16 ed. Boston: McGraw-Hill Irwin.
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Hermansyah, A. (2016, August 2). Indonesia joins Malaysian halal e-commerce business. Retrieved from The Jakarta Post:
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