Designing economic and environmental system dynamic model of halal supply chain on third-party logistic industry in Indonesia

The opportunity in the application of halal supply chain is considered to rise sharply in the future. Halal market is predicted to reach US$ 2,537 billion in 2019 globally. Meanwhile, Indonesia as a country with the largest islamic population in the world certainly does not want to lose momentum in maximizing this chance. For instance, Indonesian government has initiated infrastructure development and policy. Halal supply chain has become a critical aspect regarding this development of halal industry especially in the food sector. As the demand requirement evolving, many companies consider to outsource their logistic function with third-party logistic (3PL) company. However, research that leads to the sustainable application of halal supply chain in 3PL industry is still needed. Therefore, this study aims to reveal the economic and environmental perspectives from halal supply chain in 3PL industry. System dynamic approach is used because it gives better understanding of the whole system which change its behaviour over time. Moreover, this approach also addresses possible policy scenario for Indonesia (new market penetration in middle-east). The result shows that halal supply chain gives positive impact economically and effects the environment unsignificantly. Meanwhile, finding on new market penetration policy magnify the economic aspect.