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A Historical Review On Halal Industry in The World: Challenge and Improvement Opportunities

This article reviews the growth and trends in halal industry research, highlighting the increasing demand for halal products driven by the global Muslim population. Utilizing bibliometric analysis of 214 publications, it identifies key contributors, topics, and gaps in the existing literature, emphasizing the industry's potential for economic growth and ethical consumption. The findings suggest a significant rise in halal research, with Malaysia being a leading contributor and various sectors like food, tourism, and finance being explored.

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0% found this document useful (0 votes)
11 views11 pages

A Historical Review On Halal Industry in The World: Challenge and Improvement Opportunities

This article reviews the growth and trends in halal industry research, highlighting the increasing demand for halal products driven by the global Muslim population. Utilizing bibliometric analysis of 214 publications, it identifies key contributors, topics, and gaps in the existing literature, emphasizing the industry's potential for economic growth and ethical consumption. The findings suggest a significant rise in halal research, with Malaysia being a leading contributor and various sectors like food, tourism, and finance being explored.

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REVIEW AETICLE

Published Online: November 18, 2023


https://doi.org/10.31893/multirev.2024020

A historical review on Halal industry in the world:


Challenge and improvement opportunities
Vira Auliaa | Nur Azizaha
aUnivesitas Muhammadiyah Yogyakarta, Master of International Relations, Bantul, Indonesia.

Abstract The expanding growth rate of the global Muslim population indicates a rise in halal product consumption.
Numerous stakeholders, including academics and researchers, accord the halal market with a great deal of importance.
Several scholars have conducted research on halal-related topics. However, these studies encompass a wide range of
topics, including ICT potential in the halal sector, the halal supply chain, Islamic law, and other natural science-related
halal studies. This article aims to determine and map research related to the development of halal industry research
trends published by leading journals worldwide. A qualitative method approach was used with descriptive statistics
literature study from 214 publications on the topic of Halal Industry and VOS viewer software to study information about
journals, articles, authors, citations, keywords, and countries. According to the findings, the number of publications on the
development of halal industry research increased dramatically. The greatest number of document types are journal
articles, in accordance with the results. Malaysia participated the most in halal industry research, while several non-
Muslim countries were also represented. The most prominent keyword topics were halal industry, halal, halal logistics,
and halal food. This study also exposes gaps in halal research and provides suggestions for future studies.
Keywords: Halal industry, bibliometric, VOS viewer

1. Introduction
The halal industry is a rapidly growing sector of the global economy that encompasses a wide range of products and
services that are deemed permissible under Islamic law (Hassan et al., 2011). The term "halal" refers to anything that is
lawful and permitted under Islamic guidelines and principles and includes not only food and beverages but also cosmetics,
pharmaceuticals, financial services, and tourism (Dewi et al., 2023). The halal industry has gained significant attention and
importance in recent years due to the growing global Muslim population, which is projected to reach 3 billion by 2060
(Religion et al., 2011). This has led to increased demand for halal products and services, particularly in Muslim-majority
countries and regions (Adnani et al., 2023).
Several countries are the most importers in the halal sector: Saudi Arabia, the Uni Arab Emirate, Turkey, Indonesia and
Malaysia (Dinar et al., 2022). However, the halal industry is not limited to Muslim consumers, as there is also a growing
demand for halal products and services from non-Muslim consumers who are interested in ethical and sustainable
consumption (Arifin et al., 2023). The halal industry is also seen as a potential driver of economic growth and development,
particularly in countries and regions with significant Muslim populations (Dinar et al., 2022). The industry provides
opportunities for job creation, investment, and innovation and has the potential to contribute to sustainable and inclusive
economic development (Hasan et al., 2022).
The halal industry has gained significant global attention and growth in recent years, driven by the increasing demand
for halal-certified products and services from Muslim consumers worldwide (Ab-Talib, Mohamed et al., 2016). The industry
has expanded beyond traditional halal markets, such as predominantly Muslim countries, and has reached a global scale,
catering to the needs and preferences of Muslim populations as well as non-Muslim consumers who value halal products for
their quality and ethical standards (Kadir et al., 2015). Key aspects of the halal industry include the following:
1. Halal Certification: Products and services in the halal industry often undergo certification processes to ensure
compliance with halal requirements. Halal certification is typically conducted by recognised certification
bodies that verify the halal status of products and issue halal certificates (Anggarkasih et al., 2022).
2. Food and Beverage: The halal food and beverage sector is one of the most prominent segments of the halal
industry. It covers a wide range of products, including meat, poultry, seafood, fruits, vegetables, processed
foods, and beverages, all prepared in accordance with halal principles (Alhariri et al., 2020).
3. Halal Tourism: Halal tourism caters to the needs of Muslim travellers, offering travel services and facilities
that comply with Islamic principles. This includes halal food options, prayer facilities, and family-friendly
accommodations that adhere to specific guidelines (Han et al., 2019).

Multidiscip. Rev. (2024) 7:e2024020 Received: September, 4 2023 | Accepted: November 1, 2023
Aulia and Azizah (2024) 2

4. Halal Cosmetics and Personal Care: Halal cosmetics and personal care products are produced using
ingredients that are permissible according to Islamic principles. They are free from substances prohibited in
Islam and are not tested on animals (Abd Rahman et al., 2015).
5. Halal Pharmaceuticals and Healthcare: Halal pharmaceuticals and healthcare products aim to meet the needs
of Muslim consumers by adhering to halal requirements in their formulation, manufacturing, and distribution
(Hashim et al., 2013).
6. Halal Finance and Islamic Banking: Halal finance refers to financial services and products that comply with
Islamic principles, such as interest-free banking, profit-sharing, and investments in ethical and Sharia-
compliant ventures (Beck et al., 2013).
The halal industry presents significant opportunities for businesses to tap into the growing global Muslim consumer
market (Hassan et al., 2011). It also promotes ethical production and consumption practices, catering to consumers who seek
products that align with their religious and cultural values (Mohd et al., 2020). As the demand for halal products and services
continues to rise, the industry is expected to further expand and diversify in the coming years (Ag Majid et al., 2021).
As the halal industry expands, the need for new policies, regulations, and the expansion of knowledge becomes
increasingly crucial. Researchers must therefore contribute their ideas and research to the halal ecosystem. Over the past 14
years, halal research has gradually acquired a global foothold. Although the number of studies on the halal industry is
growing, to the best of the authors' knowledge, only a small number of studies have reviewed and evaluated the topic using
bibliometric and network analysis techniques. Consequently, this paper analyses the available literature in the broad field of
the halal industry dating back to 2009; the bibliometric analysis identifies the leading contributing authors, countries,
journals, and subject areas. It evaluates the quality of the studies, analyses the critical research areas, and predicts the
direction of future studies. Using this methodology, the current trend in halal research and prospective future research gaps
are analysed.
Before initiating any research project, a literature review is essential to determine the possible research gaps that
would help strengthen the body of knowledge. There have been multiple attempts to review halal industry research using
bibliometric and bibliographic analyses.
The halal industry is the main topic of study by the previous authors. There are a total of six published articles related
to the halal industry written by (Hasan et al., 2022; Mubarok et al., 2020; Siregar et al., 2022; Bidin et al., 2021; Adham et al.,
2020; Batubara et al., 2022). Other topics that the previous authors have reviewed are related to bibliometric analysis (Liao
et al., 2018; Moral-muñoz et al., 2020; Ellegaard et al., 2015). Meanwhile, Nazaruddin et al., (2023) took a different approach
to study halal literature review by focusing only on halal food.
From the previous literature reviews, it can be concluded that the halal industry has been discussed in many sectors;
however, no published study has hitherto examined the historical overview through publications worldwide. Together with
previous studies involving bibliometric analysis, this study considers future trends in the halal industry. This paper is
organised as follows: the methodology, results and discussion are covered, and the paper ends with a conclusion.
2. Materials and Methods
The methodology used in this study is a qualitative method approach with a descriptive statistics literature study from
214 publications on the topic of the halal industry. The primary focus of this study is to analyse and categorise the body of
literature published in halal industry research using bibliometric analysis. Bibliometric analysis is a common research
technique to determine the state of the art of a certain topic (Abbas et al., 2022). Bibliometrics includes two types of studies,
namely, descriptive studies and evaluative studies (Donthu et al., 2021). Descriptive studies analyse the productivity of
articles, books, and other formats by looking at authorship patterns such as the gender of the author, the type of work the
author does, the level of collaboration, and the author's productivity (Alalwan et al., 2017).
Evaluative studies analyse the use of literature by counting references or citations in research articles, books, or other
formats. The method can describe patterns of publications within a given period or body of literature by utilising quantitative
analysis and statistics. This research method is also used to gain a one-stop overview, identify knowledge gaps, derive novel
ideas for investigation, and position their intended contribution to the research field.

Figure 1 “Halal Industry” Document Results.

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This review uses databases taken from Scopus (from a total of 214 result documents with keywords “Halal Industry”)
and dimensions that are extracted using statistical analysis by Microsoft Excel and bibliometric analysis by VOS viewer. VOS
viewer is a computer program usually used to create maps based on network data. The method of bibliometric analysis used
in this study follows the guidelines of (Donthu et al., 2021). The procedure for carrying out the analysis is structured in three
phases, as shown in Figure 2.

Figure 2 The developed method in this study.

In the first step, the techniques that need to be used in the bibliometric analysis are finalised. According to (Donthu et
al., 2021), two main techniques must be used in a bibliometric study: performance analysis and science mapping.
Performance analysis is used to examine the contributions of research constituents to a given field, and science mapping is
used to examine the relationship between research constituents.
Second, the keywords and criteria used to select the documents are identified. This study uses the keyword “halal
Industry” in the Scopus database because it is the largest bibliographic database of peer-reviewed articles. This article limited
the time research from 2009 to 2023. The results are refined by excluding conferences, short surveys, and magazine articles.
This study also evaluated scientific publications, articles, and reviews published in peer-reviewed journals because they are
also considered “certified knowledge”. The results led to 214 relevant documents after removing duplicate data.
In the next step, the data are analysed using Microsoft Excel for performance analysis and VOS viewer for science
mapping. Finally, the results are analysed by reviewing the growth pattern of halal industry research and the overview of
halal industry research topics since 2009. The gap in halal research is identified and presented.
3. Results and Discussion
The following table 1 shows the different types of documents used in this research. Within 214 documents, halal
industry publications are divided into seven types of documents, including journal articles (152), conference papers (29),
book chapters (16), reviews (8), books (4), short surveys (2), retracted articles (2), and editorials (1).

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Table 1 Documents by Type.


No Document type Number of articles
1. Article 152
2. Conference Paper 29
3. Book Chapter 16
4. Review 8
5. Book 4
6. Short Survey 2
7. Retracted 2
8. Editorial 1
Total 214

Based on the results of the grouping of document types above, the journal articles in Scopus data accounted for 71.9
percent; however, the lowest percentage of documents published stood only 0.5 percent. This shows that the references
used in this study are quite valid because most of them come from documents in the form of scientific articles.
3.1. Publication by Year
This section describes the changes in the total number of halal industry searches every year between 2009 and 2023.
Overall, despite some fluctuation, the chart increased over the year until 2022, whereas in 2023, the data provided are only
available until April (Figure 3).

Publication by Year

42

29 29

22
17 16
13
10 10 10
6
3 4
1 2
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Figure 3 Total Publication per Year.


Source: Database scopus.

First, halal industry studies started at 3 documents in 2009 and experienced a slight fluctuation, which means that this
study field was not an interesting subject to discuss in the first 5 years. Furthermore, the line continued to increase until 2017
between 2 and 22 publications. Nevertheless, the trend had witnessed a fall, it continued growing and reached a high of 42 in
2022. It is believed that the data will continue growing this year.
This indicates that the study of the halal industry is expanding and gaining popularity among scientists worldwide.
Several factors contribute to this: First and foremost, the demand for halal products has increased significantly over the past
few years, not only among Muslims but also among non-Muslims seeking safer, healthier, and more ethical products. The
rapid expansion of the halal market is creating thrilling and promising business opportunities, and scientists are eager to
comprehend the industry's potential and economic implications. Second, the halal industry has the potential to become a
significant and influential global market. Exporting halal products to countries with sizable Muslim populations is possible,
and it is essential for scientists to comprehend the requirements and standards applicable to international markets. In
addition to economic aspects, the halal industry also has significant social and cultural impacts, particularly within the
context of Muslim societies. Understanding how the halal industry influences consumption patterns, lifestyles, and cultural
values in society is facilitated by studying the halal industry. Last, Innovation and Technology: The halal industry is concerned
not only with meeting religious requirements but also with innovation and technology. Scientists are interested in identifying
innovative trends in the halal industry, such as the use of technologies, novel materials, and more efficient and
environmentally friendly production methods.

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Thus, research on the halal industry is of interest to scientists, as it encompasses numerous economic, social, cultural,
and technologically significant aspects. This industry's rapid market expansion and global potential generate a strong desire
to learn more about it, as it becomes increasingly significant and pertinent to the global economy.
3.2. Publication by Authors
In the proposed field of research, 160 authors are presented. The figure shows the top 10 influential authors based on
their occurrence in the number of documents (Figure 4) and several citations during the 2009 to 2023. According to the
number of scientific documents, Ab Thalib, Abdullah, and Azmi have similar total documents published, with 4 articles,
followed by the six authors – Adham, Bojei, Dube, Hassan, Lijun, and Musa with 3 documents. From the 214 documents
analysed, the line in the graph below shows the total citations of every author. Overall, Abdullah’s journal was the most cited
author, with approximately 1000 citations.

Publication by Authors
Author's publications Total citations

5 1200
4 1000
800
3
600
2
400
1 200
0 0

Figure 4 Publication by Authors.


Source: Database scopus.

3.3. Publication by Country


The map below depicts the top ten countries conducting research on the halal industry (Figure 5). Overall, it can be
seen that Malaysia had the largest proportion of publications in the world, while Bangladesh, China, and the Russia
Federation had the least.

Figure 5 Top 10 Publication by Country.


Source: https://www.mapchart.net/

In the beginning, Malaysia published 138 articles, followed by Indonesia with 41 items. Interestingly, several non-
Muslim countries, including the United Kingdom, Australia, India, China, and Russia, contribute to halal industry research. In
countries with a Muslim minority population, there is a significant amount of research on the halal industry. This indicates an

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opportunity to connect halal norms with industries such as halal food, halal tourism, halal cosmetics, halal fashion, halal
banking, and others with promising futures.
Furthermore, several non-Muslim nations study the halal industry for a variety of factors, including economic, social,
cultural, and strategic considerations. Non-Muslim nations are interested in and pay close attention to the halal industry for
the following reasons. The study of the halal industry has a large market potential not only among Muslims but also among
non-Muslims, similar to the previous explanation. This industry presents an opportunity for a country. In addition, non-
Muslim countries pay close attention to export requirements; in this instance, non-Muslim nations that are interested in
exporting their products to Muslim markets must adhere to stringent halal requirements. Halal certification is essential for
accessing large and potentially lucrative Muslim markets. Non-Muslim nations are therefore concerned with comprehending
halal standards and ensuring that their products meet these requirements. In addition, international trade, tourism, and
investment are bringing the world closer together today. Halal industry research enables non-Muslim nations to comprehend
the halal requirements and standards applicable to the global market, allowing them to engage in international commerce
and expand their market reach. Research on the halal industry can also contribute to the improvement of diplomatic
relations between Muslim and non-Muslim nations. Understanding and respecting the halal requirements of the Muslim
community can strengthen mutual understanding and cooperation between these nations.
Numerous non-Muslim nations pay direct attention to the study of the halal industry due to a number of economic,
social, and strategic advantages associated with it. Non-Muslim countries recognise the significance of participating in the
halal ecosystem to achieve economic success and promote values of tolerance and diversity in light of the halal market's
rapid expansion and development.
3.4. Publication by Subject Area
Out of 214 documents analysed, 114 are published within the business, management, and accounting subject area
(Figure 6). Approximately 58 documents are listed in the social sciences and 57 in the arts and humanities.

Figure 6 Total Publication by Subject Area.


Source: Database scopus.

The pie chart illustrates statistical data on the various subject categories of halal industry research in the Scopus
database. According to all available data, business and management are the most researched disciplines in the halal industry,
while environmental studies are the least researched field, with only 2% of all data. The topic of the halal industry has been
extensively studied in the context of management and business for a number of factors that make the halal industry a
fascinating and pertinent research field in the context of management and business. First, due to economic development, the
halal industry plays a significant role in contributing to the economic growth of a country. Business and investment in the
halal sector generate employment, boost income, and contribute to the overall economy. Additionally, it is connected to
certification and standardisation. Certification and standardisation in the halal industry are crucial management and business
issues. The production, marketing, and distribution of halal products are impacted by the development and implementation
of rigorous halal standards. Companies must study halal certification and its implementation to ensure compliance with
applicable requirements.
Additionally, there is a study on the exploration of new markets in management and business studies. The halal
industry provides opportunities for companies to enter new markets in Muslim-majority countries or Muslim communities in
non-Muslim countries, allowing them to expand their markets and their global footprint. Studies of the halal market and
consumer behaviour aid businesses in identifying and comprehending the preferences and requirements of this prospective
market. In addition, the management and business aspects of the halal industry require knowledge of government

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regulations and policies concerning halal certification, industrial governance, and consumer protection. This research aids
businesses in adhering to regulations and comprehending the applicable legal environment.
The halal industry offers a variety of attractive business and economic growth opportunities and is relevant to issues
of sustainability, ethics, and corporate social responsibility. Studies on the halal industry also address certification,
standardisation, branding, regulation, and market expansion, all of which are pertinent to management and business in the
present global era.
The primary concentration of the halal industry is on the halal and hygienic aspects of the products and services it
produces, as opposed to environmental issues. In the production, refining, and distribution of goods, the halal industry
emphasises adherence to Islamic requirements and regulations. The primary objective of halal certification is to ensure that
the product is free of ingredients forbidden by Islamic teachings and that the production process adheres to sharia principles.
In this instance, halal and product cleanliness take precedence. Environmental Science, on the other hand, focuses more on
comprehending the natural environment and the influence of humans on that environment. The scope of environmental
studies includes natural resource conservation, environmental impact assessment, waste management, climate change, and
efforts to attain environmental sustainability.
Nevertheless, the halal industry is involved in a number of environmental concerns. Some halal producers, for
instance, can consider environmental factors in their production processes, such as the use of eco-friendly materials, energy
efficiency, and sustainable refuse management. This connection is not always the primary focus of halal certification, which
emphasises halal from a religious standpoint. In the meantime, environmental concerns can be an additional consideration
for producers, including halal product manufacturers, who wish to achieve holistic business sustainability. Since ensuring the
halalness and purity of the product is the top priority of the halal industry, its connection to Environmental Science is
typically less prominent.
3.5. Science Mapping
For scientific mappings, software applications such as Gephi, Graph Maker, Hist Cite, Pajek, and VOS viewer are
available. This free application allows users to generate and view bibliometric maps. VOSviewer devotes particular attention
to the graphical representation of bibliometric maps, unlike SPSS and Pajek, which are commonly used for bibliometric
mapping. The functionality of the VOS viewer is advantageous for displaying large bibliometric maps in an understandable
manner (van Eck et al., 2010). The upcoming subsection presents the co-occurrence analysis of keywords, author cocitation
analysis, and analysis of themes and topics.
3.5.1. Clustering of Themes in the Halal Industry
This article used VOS viewer software to understand the most frequently discovered bibliometric keyword in the
theme of the halal industry. The bibliometric mapping keywords can be seen in Figure 7.

Figure 7 Clustering of Themes in Halal Industry.


Source: Using VOS viewer.

Keywords that have larger forms indicate that the word is more commonly used in journals related to the halal
industry. The map above can be used to determine the trend of keywords in the last few years. Bibliometric analysis reveals
several keywords that are widely used in papers that become the object of research. The more keywords appeared, the

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better the area of the largest circle indication. The line relationship between keywords indicates how closely they are related
to one another. Based on the results of the VOS viewer analysis, the halal industry contains numerous clusters and is
interconnected with other keywords. Similar-coloured keywords indicate an extremely tight relationship. "Halal Industry" is
the most frequently used journal keyword, followed by "Halal" as the second largest portion, while "halal certification and
label" is the most distant and smallest portion in these issues.
3.5.2. Study Field Relating to the Halal Industry Over the Period of Time
Figure 8 In the overlay visualisation, the novelty year of publication for each published article is based on the
keywords or terms represented by colour gradations from dark blue to bright yellow; in other words, it displays traces of
research history over time. As an illustration of research using vibrant yellow terms and keywords, "Islamic economics, food
industry, and digital economy" is provided. It can be concluded that articles containing these keywords were published in
2023, making them relatively recent. By conducting an in-depth analysis of each yellow keyword or term on the visualisation
overlay, it will track global research developments in the halal industry.

Figure 8 Study field over the Period.


Source: Using VOS viewer.

Furthermore, figure 9 shows density visualisation of the clustering theme using VOS viewer. According to Van Eck et
al., (2013), density visualisation describes the emphasis on the research group. Density can be used as a basis for examining
infrequently researched topics. The faded the colour describes the terms/keywords/topics, the less research has been
conducted on them; conversely, the brighter the yellow colour is, the more research has been undertaken on it.

Figure 9 Density visualisation of the clustering theme.


Source: Using VOS viewer.

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Aulia and Azizah (2024) 9

Figure 9 depicts examples of topics that are infrequently studied, such as "digital economy", "marketing strategy", and
"supply chain". In these topics, the underlying colours are extremely diminished and nearly invisible. It can be concluded that
these topics have the potential to produce high novelty if further research is conducted, whereas topics containing the
keywords "halal industry" and "halal" have become crowded with research, as indicated by the vibrant yellow colour.
Figure 10 displays the theme in the halal industry and the relations among other topics. Overall, it can be seen that the
halal industry extensively engages in discourse surrounding halal food due to its significant role in the daily lives of individuals
and Muslim communities. The comprehension of halal cuisine is derived from the principles and teachings of Islam. Halal
food refers to food items that are deemed permissible or not prohibited according to the teachings of Islam. Halal cuisine
holds significant spiritual meaning within the Islamic faith. Hence, several deliberations within the halal sector revolve around
matters pertaining to food. cuisine is an essential requirement for human sustenance, and individuals adhering to the Islamic
faith globally rely on halal cuisine to fulfil their dietary requirements. Consequently, there exists a substantial global demand
for halal food, thereby driving the growth and advancement of the halal food industry.
Subsequent to that, the further areas of investigation encompassed in this study are the domain of halal fashion
products, the Islamic banking sector, the halal cosmetics industry, the halal tourism industry, and the subject of market
demand for halal products. The exploration of these topics is of significant relevance, as it directly impacts the growth and
advancement of the halal industry.

Figure 10 The Theme of Studies of Halal Industry.

4. Final Considerations
Bibliometric analysis is used to evaluate 214 articles in halal industry research. The outcome yields valuable insights.
Research on the halal industry can be divided into five major categories: halal industry, Islamic law (halal, haram,
certification), halal logistics, halal cuisine, and halal tourism. It is also a prominent topic of discussion among Muslim and non-
Muslim authors, and Malaysia is the leading contributor to this research field. This field has been expanding since 2020 as the
number of publications has increased over time. This study is limited by the fact that it utilises Scopus as its primary research
database, and it is not confined to a particular field. The keyword is too generic, as only 1 phrase, “halal industry”, was used
in this study. As a consequence, an excessive number of articles are extracted and must be analysed. Future research can
adopt specific keywords to extract fewer articles, enabling researchers to comprehensively examine all relevant articles.
Although halal industry research has been conducted for more than two decades, the quantity of research in this
discipline is still insufficient. Various issues and problems within the halal industry require investigation and resolution.
Therefore, additional research is needed in this area to cover the void and contribute to the growth of the halal industry.

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Acknowledgment
Acknowledgments to the master program in international relations and the University of Muhammadiyah Yogyakarta for
facilitating the author so that this article can be completed. Furthermore, thanks to Ahmad Sahide and Nur Azizah who have
guided the author.
Ethical considerations
Not applicable
Conflict of Interest
The authors declare no conflicts of interest.
Funding
This research did not receive any financial support.
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