Blockchain in the Halal food sector by Regi Wahyu, CEO, HARA | Halal Dining ASEAN Forum 2021

Hi. Thank you for the opportunity for me to be able to share our experience on implementing blockchain technology in the Halal value chain. And today I will talk about three major things based on our experience. First is about our belief about wellness evolution Second is more on what is the main functionality and characteristic of blockchain as a game changer technology. And the third one, I'll explain little bit details on how we really bring the blockchain technology into the real life businesses. So with that, I would like to share a couple of slides that I prepare for this event. Again, we heard about blockchain. We heard about the next trend coming up after all this pandemic happened and the question that I have and that we have when the pandemic hitting everywhere in the world is the wellness of the consumer, the wellness of the people.

The question with all these wellness revolution happening right now, people are more aware about their health. People are more aware on the food they consume because they need to make sure the immunity in terms of their body and well being. So the question that I have is actually, do you think these logos, like what we see in this light is actually the expiry date nutrition fact and Halal certificates are enough for the consumer decision to buy the food itself. So these are a lot of debates and a lot of discussion. How can we bring more value to the consumer in regards of building their trust toward the food quality that we are serving to them, toward the food quality that we are selling to them? And from the consumer side, I think they want to see and get an assurance whether the food that they are buying and they consume is really good for their wellbeing and their health.

So that's the question that we have at the beginning of early last year when the pandemic happened. And on the other side, when we did a lot of research about the Halal supply chain, there's a lot of cases around the world, not only in Indonesia or Southeast Asia, but around the world. There's a lot of issues regarding the fraud of the Halal quality or Halal certification or Halal logo itself because Indonesia is the largest Muslim population. We really need to pay attention into this kind of Halal food because the market is so huge and not only in Indonesia but around the world. Halal food are something that everyone looking at it and these kind of issues and these kind of risk if we are not building up our product with the right mindset as well as the right processes as well as the right technology that's available in the market nowadays to ensure that the consumer getting the best that they can get and gaining the trust from the consumer because otherwise, like you see on this slide, there's a lot of risks that you guys need to mitigate whenever you sell the product to the market.

And the question is actually what can blockchain bring to the table for building the trust on the consumer side? How can really this technology revolutionize the trust for the consumer not only online, but on the offline world, on the physical world? So if you look at the blockchain characteristic of the blockchain technology itself, there are four things that we need to understand. Blockchain is the open ledger is a system for us to record every transaction, every record on the decentralized system that's built within the protocol of the blockchain, which it has immotability. Nobody can change, nobody can hack the system that already written the data and information being posed on the blockchain system. And it's transparent that everyone who has access to the blockchain system will able to see every record that's available and being put on the blockchain system, then everyone can trace the history of all data transaction within the blockchain system. So with all those four characteristics that blockchain technology has, it will bring more and more trust because nobody can change it and it's so transparent and placeable. And that's what when we talk with a couple of different stakeholders, including the KNEKS, Central Bank and one project that we did last year with the Sreeya Tbk, which is the public listed company in Indonesia, they produce poultry.

And the CEO of Sreeya has ambition to do some digital transformation to deliver the best value that they can give to the consumer, which is trusted product, which they produce along the way, their supply chain as well as within their manufacturers. So they launch the system Jaminan Halal, which is Halal assurance for the consumer. And introduced together with us and some other stakeholders, like I mentioned earlier, is Halal Blockchain. This is the first in Indonesia for this kind of technology, which is blockchain technology applied in the Halal industry and Halal sectors in which we learn so much together with them about what are the key points within their supply chain that required and comply with the Halal certification, which the government institution doing it for many companies. So throughout the processes we identify, there are 17 processes that require to be compliant and those processes that we identify.

Every single step we capture the data, there's some mobile application being used and there's some sensors that we capture for those data. The goal is actually to make sure that all the seven lead processes recorded in the blockchain system that we built and make it transparent for the consumer who are going to purchase the product produced by Sreeya after we do a lot of work and especially the transformation itself, the change management applied in the organization to make sure that the discipline as well as the mindset to follow the new processes consumer, by the end, they are going to be the ones who get the most benefit out of this. Because if you go to the supermarket right now, you are able to see the product with the bar code or the QR code when you scan it, you will see when this chicken being slaughtered, where is the slaughterhouse, when the condition, the grade and including who are the person or who is the person who does the slaughtering, does the person who did that have a certificate from the government legally and when the certificate expired and so on.

And all those detail information are available within that QR code that provided in the product itself. So by having this is actually the consumer not only looking at the expiry date, but the consumer can see the freshness level and they get an assurance that this product being treated in the Halal way, which the system itself will assure that and guarantee that the way they do it really comply with the Halal certification which apply in the country like Indonesia, that's the benefit for the consumer.

And what is the upside benefit for the company like Sreeya for the first time in the history of the company as well as their clients like McDonald's. This is the first time the McDonald having a collaboration and having business transaction with Sreeya for food traceability, especially for Halal blockchain itself. So people, whoever buy the product in McDonald's, they are not only looking at the Halal certificate, but they can later on they can scan the chicken, where the chicken come from and how the chicken being treated in the Halal way produced by Sreeya. So that's kind of one of the implementation in the food safety using the blockchain technology to give more trust as well as other benefit that consumer can get, which is more confident, more comfortable and more confident to consume the product. At the same time, it's really driving the business growing more faster when they have unique value proposition compared with other competitors. So in a nutshell that I'm trying to summarize the key takeaways from very short presentation that I did. Number one is actually how we can see moving forward consumer demand more and more trust from the food producer because not only about wellness revolution, but with all the bad news happening in the market right now, it's required they have more diligently to decide which food that they are going to consume.

Number two, well this is the web 3 generation which is blockchain is the fundamental technology can be applied in many other sectors. Not only what we've been hearing about the bank transaction, but as much as you have a creativity, as much as you have mindset and efficient toward your company, you can leverage a blockchain in the Halal ecosystem and that's going to be beneficial for all the players within the ecosystem. And the third, blockchain, what do you call Halal certification and all those stuff are just the tools for the leadership within the company to use and leverage.

But the most important thing is actually their efficiency as well as their mindset to make sure that whenever they apply these tools. The technology approaches are really embedded into their operation and they embrace the value that they can create for their funding customer. So with that I would like to stop..

As found on YouTube

Blockchain in the Halal food sector by Regi Wahyu, CEO, HARA | Halal Dining ASEAN Forum 2021

In this session at the Halal Dining ASEAN Forum 2021, Regi Wahyu, the CEO of HARA, shares their experience on implementing blockchain technology in the Halal value chain. First about their belief in wellness evolution. Second, what are the main functionality and characteristic of blockchain as a game-changing technology. Third on how they bring the blockchain technology into the real-life businesses solutions

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