Economic analysis of halal certification by the Halal Product Assurance Administration Agency

Abstract

This study analyzes the economics of halal certification by the Halal Product Assurance Administration Agency (HPAAA). This research aims to make it easier for MSEs to manage the business certification process for their business. The ease of obtaining halal certification for business actors provides economic benefits. The economic side of the analysis is to provide convenience and simplification of submitting applications for halal certification so that business actors and economic actors will provide comfort in marketing their products that have been certified halal. Another advantage of halal certification is that the product is known in the national market. Product sales are increasing with a halal certification logo and guaranteeing halal certainty on products that business actors have produced. The method in this research is qualitative. This research is sharpened through data analysis by categorizing various data and arguments to explain the policy model for halal product assurance certification. The data obtained will also be mapped based on the sequence of time, events, subject, and place determination. The point is to chronologically describe what happened in the political economy of halal certification. The next step that needs to be done is to understand the background of the emergence of the halal certification policy to digest the various problems that exist in it and further understand whether or not there is a tendency for certain political motives and interests. The last step is to construct the existing policy model precisely by describing it appropriately. The conclusion in this study is that halal certification seen from economic factors will increase the profits of business actors because people from various economic strata, if they want to buy food, drinks, and the like, are required to see the halal certification logo with the aim that the food and beverages consumed are guaranteed halal. Meanwhile, from an economic perspective, the goods or services offered by producers to the public will be profitable if business actors have halal certification compared to business actors who do not have halal certification, and have an impact on increasing sales of halal products, so with this impact. These business actors do not have halal certification. The halal certificate will take care of the halal certificate to the local HPAAA.