The role of digitalization in enhancing the competitiveness of halal MSMEs in Indonesia

This study aims to analyze the level of digital technology utilization among halal MSMEs in Indonesia and the factors that influence the low adoption of certain digital platforms. This study uses a literature review method to analyze the role of digitalization in enhancing the competitiveness of halal MSMEs in Indonesia. The literature review process was carried out by exploring various scholarly sources such as national and international journals, conference proceedings, research articles, and official reports from government institutions. Based on survey findings, the use of digital technology among halal MSMEs shows considerable variation. Digital payment is the most widely used technology, with an adoption rate of 93%. This indicates that MSME actors have become increasingly accustomed to cashless transactions, in line with the digitalization programs promoted by Bank Indonesia and the Ministry of Cooperatives and SMEs in the post-pandemic period. Meanwhile, the utilization of marketplaces and social media shows the same percentage, namely 34%. These two channels serve as primary platforms for marketing halal products due to their ease of use, low cost, and broad market reach. On the other hand, the use of personal websites remains below 10%, and the utilization of the BPJPH SIHALAL system reaches only 5%. These low figures indicate that the digital literacy of MSMEs is still uneven, particularly for technologies that require higher technical skills or involve more complex administrative processes. These findings also reinforce government reports that highlight the need for enhanced digital assistance, particularly in the aspect of halal legality through the SIHALAL system. Overall, this study emphasizes the importance of more targeted assistance strategies so that halal MSMEs can optimally utilize digital technology to improve competitiveness and market access.