Digital Governance and Fraud Risk Management in Indonesia's SIHALAL-Based Halal Certification: A Shariah-Compliant Information Systems Framework

Abstract

This study examines digital governance gaps on the SIHALAL platform and investigates potential moral hazard and fraud risks in the self-declared halal certification scheme in Indonesia. This study employed an explanatory sequential mixed-methods design , analyzing survey data from 107 MSMEs assisted by the Halal Center, partners of BPJPH, and qualitative data from in-depth interviews with internal stakeholders, senior information technology auditors, and halal experts. Quantitative analysis was conducted using descriptive statistics and the Spearman correlation test, while qualitative data was analyzed using the Miles and Huberman interactive model. The results of the study indicate that information asymmetry and low digital literacy among facilitators indicated by the average MSME digital literacy score of 2.83 out of 5.00 and 55.1% of respondents who do not follow the development of advanced digitalization significantly increase system vulnerability, which triggers inaccurate verification processes and high risks of data manipulation, as confirmed by a strong Spearman correlation between low digital literacy and perceived fraud risk (? = 0.624; p < 0.001). The findings of this study indicate that the integration of Sharia-compliant digital governance principles, particularly through automated verification mechanisms such as geotagging , digital timestamps , and artificial intelligence (AI)-based image validation effectively mitigates internal fraud and ensures structural alignment with the values of Maqasid Sharia, especially in safeguarding religion ( hifz ad-din ) and public welfare ( hifz an-nafs ).