Running Business on Halal Concept

Halal business concept has been getting more traction, with more producers wanting to have their products halal-certified. Nowadays, it’s not only food, b
Halal
business concept has been getting more traction, with more producers wanting to
have their products halal-certified. Nowadays, it’s not only food, beverages,
cosmetics, and fashion producers that go after the halal label, but also
business players in tourism and entertainment sectors, and even digital
products.
This
is driven by the increase in popularity of halal lifestyle among the people.
The increasing number of digital contents from vloggers about halal lifestyle
also boosts this phenomenon.
“Furthermore,
products with halal concept attract many customers, regardless of their
religious background, for their transparency, processing safety, and service,”
Dr Jonathan AJ Wilson wrote in Marketeers
magazine July 2017 edition.
More
and more halal products of various categories enter the market, in connection
with each other. The halal standards are observed by businesses, from raw
materials, processing, service, to finance.
“Interestingly,
halal consumption by the people has spread to various countries, and the
inter-related (halal) industry sectors record value of up to trillions of
dollars,” Wilson continued.
Indonesia
has such a big market for halal products, but there are various challenges to
overcome still. Currently, according to Global Islamic Economic Report
2016/2017, in terms of sharia economy, Indonesia sits at number 10, after Qatar
and Jordan.
According
to Indonesia Halal Watch (IHW) Executive Director Ikhsan Abdullah, domestic
halal industry still has to overcome many challenges, including raising the
awareness and concern of the public towards halal products.
“Indonesians
tend to still have low awareness about halal products. Indonesians think that
all products in the market are halal,” Ikhsan told Republika.co.id, Monday (April 16).
Competition
in the halal industry also gets fiercer. Technology and free trade have opened
trade channels. Domestic halal products have to compete with foreign halal
products.
But
a challenge is not an obstacle. The big potential market can become a golden
opportunity for Indonesian business players. The market demand grows, creating
new opportunities, including the need for trusted halal transportation.
TRAC
is not willing to waste the opportunity. As a business unit of PT Serasi
Autoraya (SERA) operating in trusted vehicle rental, TRAC offers a
sharia-compliant car rental service for corporations.
TRAC Syariah is the first product in Indonesia that
legally provides ijarah service, vehicle rental activities that are compliant
to Islamic laws.
All
vehicles are procured in a halal way through a mudarabah mechanism in which the
profits generated through joint use of capital are shared according to mutual
agreement. The partnership is also protected by sharia-compliant insurance.
TRAC Syariah is also transparent about the fund used
for managing the vehicles, which can also be developed into a mudarabah product
with profit-sharing concept.
The new service itself has obtained a recommendation
from the National Sharia Council to run a sharia-compliant car rental service
business, as inked in a recommendation letter issued on November 7, 2016.
Thus,
the public can enjoy halal service from a trusted transportation company. For
further information on other SERA business units, please click this link.
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