Analysis of the Structure, Behavior and Performance of Indonesia

Halal Food Industry with Digital Marketing Post Covid-19 Pandemic

Christianus Manihuruk

, Bachtiar Simamora

and Lily Leonita

Management Department, Binus Business School Bina Nusantara University Jakarta, Indonesia

Management Department, Binus Online Learning Bina Nusantara University Jakarta, Indonesia

Keywords: SCP, Growth, PCM, MES.

Abstract: Indonesia as a country with the largest Muslim population in the world has a comparative advantage of

tremendous opportunities to produce and export food and beverages with good and halal export quality. The

condition of the corona virus pandemic or Covid-19 has forced industry players to revise the targets they have

set for 2020. The aim of this study is to analyze the Structure, Behavior and Performance of Indonesia Halal

Food Industry with Digital Marketing Post Covid 19 Pandemic. Data analysis is carried out descriptively by

explaining the description of the analysis of halal food behavior in Indonesia and quantitatively by analyzing

the market structure of the halal food industry. The result shows the structure of the Halal Food Market in

Indonesia is a monopsony market, the largest company in Indonesia has an average market share of 2.72%,

and CR4 averages 3.85%, the growth of the domestic Indonesian Halal Food Industry is relatively stable with

an average of 15.68%, the trend tends to decline in 2018 to 3.74%, and the performance of the Indonesian

Halal Food Industry has a normal profit rate of 2.74% on average. It is expected that halal food and beverages

performance will improve significantly with digital marketing post Covid 19 pandemic with the right

government policy in place.

1 INTRODUCTION

The condition of the corona virus pandemic or Covid-

19 has forced industry players to revise the targets

they have set for 2020. The Association of Indonesian

Food and Beverage Entrepreneurs (Gummi) had

projected growth in the range of 8% -9% in 2020

KONTAN.CO.ID – JAKARTA. "If GDP is projected

to be minus 0.4% to 2.3%, then food and beverage

growth is predicted to only be at the level of 4% -

5%,".

Statistics 2018, the population of Indonesia is 252

million people, Gross Domestic Product (GDP) IDR

15,833,943 billion, Medium and Large Industry and

Manufacturing GDP 3,119,617 billion (19.70%), the

number of companies 29,554 with a total workforce

of 6,005,669 people, for medium and large companies

for Halal food, the number of businesses is 6,749 with

a workforce of 937,599 people. Small Halal Food

Industry Number of Businesses 1,741,779 with a

workforce of 3,612,058 people. Increasing sales and

business continuity of halal food products in addition

to traditional marketing and modern digital marketing

so that marketing distribution is spread to foreign

countries.

Indonesia as a country with the largest Muslim

population in the world has a comparative advantage

of tremendous opportunities to produce and export

food and beverages with good and halal export

quality (Ruangkanjanases, 2019). Imported products

are now starting to flood our homeland with various

types of attractive packaging. People need to be

careful in choosing these products, there could be

something hidden behind these food products that are

not suitable for consumption by Muslims. Interviews

were used in identifying the halal/halalan and

toyyib/toyyiban issues, and control points along in

storage, which are frequently interrelated (Omar,

2013). Halalan Toyyiban Issues along the Supply

Chain (Riaz and Chaudry, 2015) the Hazard Analysis

Critical Control Point (HACCP) is an application of

halalan toyyiban principles along the supply chain

from the source of supply to the customers, which

adhere to the halal toyyiban concept stipulated under

Islamic law. The halal products should not be mixed

with other nonhalal products during the supply chain

process as to sustain the products' halal status.

Manihuruk, C., Simamora, B. and Leonita, L.

Analysis of the Structure, Behavior and Performance of Indonesia Halal Food Industry with Digital Marketing Post Covid-19 Pandemic.

DOI: 10.5220/0011241900003376

In Proceedings of the 2nd International Conference on Recent Innovations (ICRI 2021), pages 61-69

ISBN: 978-989-758-602-6

Throughout these activities, various circumstances

could expose the food product into risks that would

affect the status of the halalan toyyiban of a product.

Fatwa of the Indonesian Ulema Council (MUI)

Number 26 of 2013 concerning Halal Standards for

Products and Their Use. All articles in the document

apply not only to consumers, but also business actors.

Article 8 in Law Number 9 of 1999 concerning

Consumer Protection. The first paragraph in this

article states that business actors are not allowed to

produce goods and / or services that violate halal

provisions. From the two regulations, it is concluded

that all food and beverage products that are sold freely

in a mandatory manner must be good and halal. Food

and drinks that are halal Thyonian or halal and good

and nutritious are certainly very useful for us, both for

our physical and spiritual needs. MUI has been

granted a Halal certificate to ensure the nation's

access to food, beverages and halal materials (Nafis,

2019). MUI has also established the standards of halal

according to Islamic law. The examination and study

are then conducted to issue a fatwa and then a Halal

certificate is issued. Halal certification process was

not maximized in Indonesia because politics was not

integrated and facilities and infrastructure were

inadequate.

In SCP, the relationship between the three

components affects each other, including the

existence of other factors such as technology,

progressivity, strategies and efforts to encourage sales

(Martin, 1994). Specifically, the industrial economy

examines the structure, behavior and performance of

markets, companies and industries (Jaya, 2019).

Previous research StructureConduct-Performance

(SCP) Food and beverage products from 2009 to

2013, the market structure was monopolistic (Yuliati,

2017). Unlike the SCP of the beverage industry in

Indonesia during the period 2010 - 2014 (Kholik,

2015), the market structure is oligopoly. The

difference occurs that the first researchers are food

and beverages, the second is only drinks. In order for

the research to be different, the authors will examine

only halal eating in Indonesia (Pujadi et al., 2020).

PT CDMI Consulting 2018 research shows that

the rating of 4 big food companies that are well

known to the public in Indonesia, namely: PT

Indofood Sukses Makmur, PT Mayora Indah, PT

Ultrajaya Milk Industry, and PT. Nippon Indosari (all

of them have gone public) as well as being a

secondary data source in this study and a data source

for the Central Bureau of Statistics for 2020.

Companies can work with all Business to

Business, Business to Country companies across

industries and build brands, grow market share, and

increase loyalty and customers with the right digital

capabilities.

2 LITERATURE REVIEW

For more than half century, the researchers have been

analyzing human need sand the way their satisfaction

can contribute to increase the quality of life (QOL) or

the happiness of individual switch in a society.

Starting with the pyramid of need of Maslow (1954),

many studies have focused on how to rank needs

within a given hierarchy [14], [16], [20] (Max-Neef,

1992; Nussbaum and Glover, 1995; Sirgy et al.,

1995). The criteria to order needs is hard to establish;

any hierarchy of needs will always be subjective and

incomplete for a large number of reasons. Industrial

economists study various company policies (the

policy of the firm) in dealing with competitors and

consumers (including how to set prices for inputs and

products, advertising strategies and research and

development including how to set prices for inputs

and products, advertising strategies (Martin, 1994).

The Economics of Industry organization written by

Shepherd (1990). Denis W and the book Modern

Industrial Organization which states that the modern

approaches have three major advantages over the

Structure Conduct and Performance (SCP), First, they

estimate the market performance rather than use an

accounting proxy (Carlton and Perloff, 2005).

Second, they use changes in exogenous variables

(wage, taxes, demand growth) to explain variations in

performance rather than endogenous variables such

as concentration ratio and advertising. Third, they are

based on maximizing models for individual industries

so that hypotheses about behavior can be rested.

Porter proposes a five forces model as a tool for

analyzing the industrial competitive environment

(Porter, 1985). Among them are: (a). Competition

between competitors in the same industry. (b).

Threats to enter the market for new entrants. (c).

Threat of substituted goods (d). Bargaining power of

buyers, bargaining power of sellers (Kuncoro, 2007).

The SCP relationship as above is also explained in

Perloff, Karp, and Golan (2007: 13) that, "In the SCP

paradigm, an industry's performance - the success of

an industry in producing benefits for consumers -

depends on the conduct - behavior - of sellers and

buyers, which depends on the structure of the market.

The structure, in turn, depends on basic conditions

such as technology and demand for a product.

Typically, researchers summarize the structure by the

number of firms or some other measures of the

distribution of firms, such as the relative market

ICRI 2021 - International Conference on Recent Innovations

shares of the largest firms." The essence of the SCP

approach to industrial organization analysis is the

existence of a hypothesis which states that the

performance or existence of the market (or industry)

is influenced by the behavior of companies in the

market, while the company is also influenced by

various variables that make up the market structure.

The following will describe each section.

2.1 Structure

A market structure consists of all firms and

individuals willing and able to buy or sell a particular

product at a given time and place (Hirschey and

Bentzen, 2016). Market Structure the number of firms

in a market and the ease of entry and exit by new

firms’ determinant the type of structure (Carlton and

Perloff, 2005). Strategic behavior a set of action a

firm takes to influence the market environment so as

to increase its profit (2205, p. 350). Structure are Size

Distribution of Firm, Market share, Concentration,

Entry Barriers and Lesser elements (W.G. Shepperd

(1990, p. 6). Some firms are horizontally integrated

dan vertical integrated (Pindyck and Rubinfeld,

2018).

Edward S. Manson (1939,1949) and Sutton

(1998) in Carlton and Perloff (2005) market structure

influences the behavior of companies that operate in

it. In general, it can be seen from the aspects of

efficiency, technological progress, market growth,

and balance in distribution.

Measurement of market concentration is

generally carried out by using the Hirschman-

Herfindahl Index (HHI) calculation using the

reference ratio of the 4 largest companies (CR4) in

the industry (Shepherd, 1990). The amount of HHI is

very sensitive to the largest share of the company,

because the smaller the share given by a company, the

less the square value of its market share. The

following is common model for testing the effects of

structure on firm’s profitability Rate of Profit = f

(Market share, Concentration, Entry barriers, Growth

rate) (Shepherd, 1990).

Based on these experts, it can be concluded that

what is meant by market structure shows the

characteristics of the market, such as the elements of

the number of buyers and sellers, the state of the

product, the state of knowledge of the seller and the

buyer, and the conditions of market entry barriers.

The market structure can also be defined as the

special environment of a company, with

characteristics that affect the determination of prices

and firm output. The elements of market structure

include: concentration, product differentiation, firm

size, growth and entry barriers, vertical integration

and diversification and government regulation.

2.2 Behaviour

According to Ferguson (1994), the term conduct

refers to the company's behavior towards the market

in determining prices (whether prices are determined

independently or by agreement), product and

advertising strategies, as well as research and

innovation. Strategic behavior is a set of action a firm

takes to influence the market environment to increase

its profit (Carlton and Perloff, 2005). Rational

behavior refers to a decision-making process that is

based on making choices that result in the optimal

level of benefit or utility for an individual. The

assumption of rational behavior implies that people

would rather take actions that benefit them versus

actions that are neutral or harm them. Most classical

economic theories are based on the assumption that

all individuals taking part in an activity are behaving

rationally (Church and Ware, 2000). The

relationships between technical organizations,

resource inputs, nature of the labor market and

product market, and variables such us as the wage

payment schema and supervisory system, all in

relation to their effect on the members of the

department and behavior with resulted (Warmington

et al., 1997). Conducts refer to the behavior (actions)

of the firms in a market; to the decisions these firms

make and also to the way in which these decisions are

taken. It thus focuses on how firms set prices, whether

independently or in collusion with others in the

market. How firms decide on their advertising and

research budgets, and how much expenditure is

devoted to these activities, (Paul R. Ferguson, 1988).

Conduct are collusion with rivals, strategies against

Rivals and Advertising activity (Shepherd. 1990).

From various opinions of experts, it can be concluded

that in industrial economics, behavior is defined as

the means by which companies gain market access.

Behavior is a pattern of responses and adjustments to

various companies in an industry to achieve its goals

and face competition, through product, price,

innovation and promotion strategies so that

companies can survive and continue to grow from

small to large.

2.3 Performance

Market performance is the success of the market in

producing benefits for consumer (Carlton and Perloff,

2005). Performance in an industry can be observed

through added value, productivity and efficiency. The

Analysis of the Structure, Behavior and Performance of Indonesia Halal Food Industry with Digital Marketing Post Covid-19 Pandemic

added value is the difference between the input value

and the output value. Productivity is the result

achieved per worker or unit of production factors in a

certain period of time. Shepheard (1990) One of the

calculations that can be used to measure performance

is the Price Cost Margin (PCM) for all industries,

namely the difference in price and marginal costs

calculated from the additional value minus labor costs

in the output section. The formula = Prize Cost

Margin = Value added - Payroll: Value of product =

Prize - Cost / Prize.

Shepheard (1990) The structure and behavior then

effect the market's performance, as reflected in the

firm's prices, cost cutting efficiency rates of

innovation, and so fa. Good performance is usually

promoted by a competitive structure and behavior.

That is, are they being productively efficient,

avoiding wasteful use of available factors of

production? Also, are they being allocative efficient

in producing the 'right' goods and in the 'right'

quantities? Light may be shed on these issues by

considering aspects of performance such as the

relationship between prices and costs, and the level of

profits earned (Carlton and Perloff, 2005). Innovation

in new technologies will support profit gains and

allow large companies to maintain maximum profit

(highly profitable positions) (Church and Ware,

2000). Performance is the final result of the overall

form of market structure and the impact of industry

behavior based on the Structural approach,Behavior

and Performance.

From the various opinions of these experts, it can

be concluded that industrial performance is the

result of work that is influenced by the structure and

behavior of the industry where the usual results are

identified with the size of market control or the

amount of profit of a company in an industry. In

more detail, performance can also be reflected in

efficiency, growth (including market expansion),

job opportunities, personnel welfare, and group

pride.

2.4 Digital Marketing

The internet brought changes in the way of marketing

products through the system of various new digital

marketing tactics, the marketing process (Olsona et

al., 2021): (1) prioritizes what company want to

produce (2) determines which marketing tactics will

be used. Variables considered strategy: prospects,

analysis and adoption of other companies that are

efficient and effective. The effect of supply chain on

new system or product innovation has been widely

studied and discussed very well in various literatures.

It is found that the integration of producers and buyers

of products has significant direct effect on marketing

performance, and the wider the marketing scope

through the mediation of manufacturing flexibility in

business.

Entrepreneurs must maximize the development

and use of technology today to make it easier for

people to carry out their daily routines. For example,

people easily shop by using internet technology if

they are busy with other routines. Buying and selling

transaction using two types of buying and selling

transaction in E-Commerce, namely marketspace and

marketplace.

Marketspace is a place buying and selling activity

wholesale and retail goods via the internet or

commonly referred to as an online store. Trading

facilities in the market only come from two

directions, namely the seller and the buyer. The

working concept is that the goods produced by the

seller are provided in this marketspace which are

addressed to the buyer.

Marketplace is a gathering place for sellers and

buyers in the transaction of selling production goods

using internet facilities. In other words, a marketplace

is a site in which there are several sellers, so buyers

can choose the goods they want to buy from various

sellers or shops on the site. Examples of marketplaces

in Indonesia include Bukalapak, Lazada, Toko

Marketing expansion and increasing turnover and

number of customers, companies need to undergo a

digital marketing transformation to increase sales and

brands, product, or solutions.

Companies can work with all Business to

Business, Business to Country companies across

industries and build brands, grow market share, and

increase loyalty and customers with the right digital

capabilities. Example Tokopedia, and others.

Marketing expansion and increasing turnover and

number of customers, companies need to undergo a

digital marketing transformation to increase sales and

brands, product, or solutions.

3 METHODOLOGY

The types and sources of data used in this study are

11 years of secondary data from 2008 to 2018

obtained from BPS, the Ministry of Industry and, the

Jakarta Stock Exchange. In principle, data analysis is

carried out descriptively by explaining the description

of the analysis of halal food behavior in Indonesia and

quantitatively by analysing the market structure of the

halal food industry in Indonesia with the following

variables:

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3.1 Minimum Efficiency Scale (MES)

At the edge of the market there may be barriers to

entry, which impede potential competitor from

entering the market to become actual competitor.

Anything that decreases the likelihood, scope, or

speed of their entry is a barrier to entry (Shepherd,

1990). Barriers to entry as measured by the Minimum

Efficiency Scale (MES) and on a larger economic

scale will be it is increasingly difficult to enter the

industry.

3.2 Growth (G)

Bain, Penrose and others have suggested that industry

growth tends to reduce concentration and entry

barrier. Growth may also destabilize the market,

making it easier for new and smaller firms to rise

(Shepherd, 1990) industrial growth (Growth) the rate

of industrial growth from one year to the next.

3.3 Price Cost Margin (CPM)

Profitability

In general, performance measurement with PCM. The

PCM value is used as the dependent variable because

PCM describes the profits of an industry and

represents the performance variable itself. There is

also internal efficiency (X-Eff) X-efficiency occurs in

two main forms (1) in buying more inputs than are

necessary, and (2) in low effort level by employees

(Shepherd, 1990) in this paper. PCM is selected.

4 RESEARCH AND DISCUSSION

4.1 MES

The market structure of the food and beverage

industry in Indonesia is seen from the barriers to entry

as measured by the Minimum Efficiency Scale (MES)

as shown in table 1.

Interpretation Related to Market Structure CR4 =

0Minimum Perfect competition 0 <CR4 <40 Low

Effective competition or monopolistic competition 40

≤ CR4 <60Medium to lower Monopolistic

competition or loose oligopoly 60 ≤ CR4 <90

Medium upward Tight oligopoly or competitive

dominant firm fringe CR4 ≥ 90 High Dominant firm

with competitive fringe or effective monopoly (near

monopoly) CR4 = 100 Maximum m Perfect

monopoly.

Table 1: Portion of each CR4 Large Company in 2008-

2018.

Year Indofoo

Mayora

Indah

Ultra

Jaya

Indosari MES

2008 0,83 0,65 0,32 0,07 1,90

2009 0,89 1,06 0,36 0,10 2,43

2010 4,66 1,62 0,76 0,13 7,19

2011 2,90 1,46 0,32 0,12 4,81

2012 4,02 1,46 0,39 0,16 6,04

2013 2,88 1,44 0,41 0,18 4,92

2014 3,24 0,12 0,03 0,17 3,57

2015 3,17 0,13 0,05 0,15 3,51

2016 2,12 0,14 0,05 0,15 2,47

2017 2,27 0,11 0,04 0,13 2,56

2018 2,36 0,12 0,05 0,13 2,67

Avg 2,72 0,75 0,25 0,13 3,85

Based on the data above, in the last 11 years the

number of CR4 Company's products was at least

1.90% in 2008, the highest was 7.19% in 2010 and in

2018 was 2.67%. The largest portion of each CR4 in

Indonesia is Indofood SM only with an average of

2.72, Mayora 0.75, Ultra Jaya 0.25 andI ndosari 0.13,

the average CR4 is only 3.85%.

The MES calculation above explains that during

2008 to 2018 the market structure of the halal food

industry in Indonesia was in the form of monopolistic

competition, because MES was carried 10%, the level

of competition was very sharp, barriers to market

entry were very small, only 3.75% or relatively

without significant obstacles.

Analysis of the Structure, Behavior and Performance of Indonesia Halal Food Industry with Digital Marketing Post Covid-19 Pandemic

4.2 Growth

Table 2: Growth of the Indonesian Halal Food Industry

2008- 2018 (Million Rupiah).

Years Sales Growth %Growth

2008 438.044 19.180 1,23

2009 446.558 8.514 1,94

2010 444.762 -1.796 -0,40

2011 647.344 202.582 45,54

2012 718.677 71.333 11,01

2013 830.050 111.373 15,49

2014 1.096.695 266.645 32,12

2015 1.212.638 115.943 10,57

2016 1.623.948 411.310 33,91

2017 1.905.191 281.243 17,31

2018 1.976.531 71.340 3,74

Average 1.030.948 141.606 15,68

Based on the data above, the growth rate of the halal

food industry in Indonesia in the last 11 years was

IDR 438,044 million in 2008, which continued to

increase to IDR 1,976,531 million, in 2010 minus

0.40% and the highest growth in 2011 was 45.54%.

The growth of the halal food industry in Indonesia has

fluctuated, with an average growth of 15.68%. The

trend of the growth of the halal food industry tends to

decline.

4.3 PCM

Table 3: PCM of the Indonesian Halal Food Industry 2008-

2018 (Million Rupiah).

Years Sales Growth %Growth

2008 438.044 10.456 2,38

2009 446.558 11.457 2,56

2010 444.762 11.952 2,68

2011 647.344 24.284 3,75

2012 718.677 24.167 3,36

2013 830.050 23.338 2,81

2014 1.096.695 29.001 2,64

2015 1.212.638 30.748 2,53

2016 1.623.948 44.908 2,76

2017 1.905.191 47.728 2,50

2018 1.976.531 43.201 2,18

Average 1.030.948 27.385 2,74

Industry performance is analyzed by looking at the

Price Cost Margin (PCM) profitability indicator, the

Halal Food Industry in the last 11 years 2.38% in

2008 was relatively stable until 2018 at 2.18%. The

lowest PCM was 2.18% in 2018 and the highest was

3.75 in 2011 with an average rate of 2.74%.

Analysis of the relationship between structures

and other factors that affect performance can be

analyzed using the Ordinary Least Squares (OLS)

method, Best Linear Unbiased Estimation (BLU)

(unbiased and good estimator (BLU) is usually done

with classical tests and feasibility tests of minimal

correlation models. 50% This is done because the use

of the OLS method is considered the most appropriate

to describe the relationship between variables and its

use is also easier than other methods in describing the

regression results.

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4.4 Classic Text

4.4.1 Data Normality

Table 4: PCM, MES and Growth Data Normality Test.

Information Jerque-Bera P > 0,05 χ2

(chi square)

B.P

Godfrey

pχ2 >pJB

PCM 2.733977 0.254873 0,6738 Norma l

MES 3.140401 5 0.207628 0,6738 Norma l

Growth 1.240525 0.537803 0,6738 Norma l

PCM, MES and Growth of the three variables p> 0.05

and χ2> pJB, it can be concluded that the three

residual variables are normally distributed then it can

be analyzed using the normal distribution.

4.4.2 Autocorrelation Test

Autocorrelation test produced by Durbin Watson

(DW) 1.527812 and between 0.758> 1.527812

<1.604 it can be said that there is no autocorrelation

problem.

4.4.3 Heteroskedasticity Test

Heteroskedasticity of the Brush Pagan Godfrey Test

model χ2 (chi square) 0.6738 greater than 0.5 means

that there is no heteroskedasticity problem.

4.4.4 Multicollinearity Test

Variance Inflating Factor (VIF) Cantered VIF

variable MES = 1,004 and, G = 1,004 all of them are

taken 10, then the two variables are said to have no

multicollinearity problem (Gujarati and Porter,

2013).

4.4.5 Regression Test

T test and F test

Partially MES to PCM t count (2.292) t table (1.96) it

can be concluded that MES and G variables partially

probity, 0.05 means a significant effect on CMP. The

effect of MES and G simultaneously has a significant

and positive effect on PCM. The results of

Table 5: The Influence of MES and Growth on the PCM of

the Indonesian Halal Eating Industry 2008-2018.

Variable Coefficient

Std.

Error

Statistic

Prob

MES

2.009365

0.109762

0.018823

0.240838

0.047873

0.006336

8.343238

2.292784

2.970807

0.0000

0.0490

0.0178

R-Squared

Adjusted

0.622892

Mean

dependent

var

2.745618

squared

S.E. of

0.528615

S.D.

dependent

var

0.445769

regression

Sum

0.306054

Akaike

info

criterion

0.696889

squared

residual 0.749352

Schwarz

criterion

0.805406

Log

Hannan-

Quinn

Likelihood -0.832892 critter. 0.628485

F-statistics

Prob(F-

6.607033

Durbin

Watson

stat

1.627812

statistic) 0.020224

the F probability test are 0.020, smaller <0.05. R

0.6228 and Adjusted R-squared 52.86. The MES and

G variables together have an effect on 53% of PCM,

the remaining 47% by other variables. The results of

this test indicate that the combination of the MES and

G variables contributes significantly to PCM.

The established of the regression model, the

reliability test R is greater than 0.50. Calculation of R

obtained R 0.622892 R Squared 0.528615 there is a

significant correlation 53% and both variables can

explain 43% of Y and the remaining 47% by other

variables.

Regression

PCM = β0 + β1MES + β3G+ εi

Where:

PCM (Y)= 2.009365 + 0.109762 + 0.018823 +e

Constance (a) 2.0093 MES (x1) = 0.109762

Growth (x2) = 0.018823

Analysis of the Structure, Behavior and Performance of Indonesia Halal Food Industry with Digital Marketing Post Covid-19 Pandemic

From the multiple regression equation, it can be

described as follows:

a. If there are no additional MES and G variables

(equal to 0), then the total PCM = IDR 2,009,365

million.

b. If MES increases by Rp. 1 billion, the number of

PCMs increases by Rp. 11 billion 3). If G

increases by Rp. 1 billion, the PCM will increase

by 1.8 billion.

5 CONCLUSIONS

5.1 Conclusion

a. The structure of the Halal Food Market in

Indonesia is a monopsony market, the largest

company in Indonesia has an average market

share of 2.72%, and CR4 averages 3.85%.

b. The growth of the domestic Indonesian Halal

Food Industry is relatively stable with an average

of 15.68%, the trend tends to decline in 2018 to

3.74%.

c. The performance of the Indonesian Halal Food

Industry has a normal profit rate of 2.74% on

average.

d. Buying and selling transaction using two types of

buying and selling transaction in E-Commerce,

namely marketspace and marketplace. The

internet brought changes in the way of marketing

products through the system of various new

digital marketing tactics, the marketing process.

e. Companies can work with all Business to

Business, Business to Country companies across

industries and build brands, grow market share,

and increase loyalty and customers with the right

digital capabilities. Determines which marketing

tactics will be used. Variables considered

strategy: prospects, analysis and adoption of other

companies that are efficient and effective.

5.2 Recommendations

a. Monopsony market structure, the number of

companies is too many, newcomers easily enter

the market so that the level of competition is very

high, it is advisable to the Government, especially

the Ministry of Industry and Trade, to make

regulations for the Indonesian Food Industry

which makes it easy for export-oriented good and

halal products.

b. As the largest Muslim country in the world, and

various types of halal food available today, it has

comparative advantages selling good and halal

food products to various countries, one way or

another, the food producers are relatively small

companies, the government advises in trade fair

events, and the industry provides the widest

possible for the Indonesian halal food industry.

c. There are many companies in Indonesia, even

though they have gone public but all of them are

small, so that the company's performance is not

optimal, it is suggested that several large

companies including those that have gone public

mergers, innovation and the use of high

technology so that the cost efficiency can

ultimately compete with other food companies in

other countries in the international world. d.

Indonesia as the most populous Islamic country in

the world has the potential to become a halal food

producer not limited to exports and imports but

can promote marketing expansion in various

countries of the world by undergoing digital

marketing transformation to increase sales and

branding, products or solutions.

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Analysis of the Structure, Behavior and Performance of Indonesia Halal Food Industry with Digital Marketing Post Covid-19 Pandemic