Government Capacity to Guarantee Halal Product from Micro, Small, And Medium Enterprises in Kebumen

The purpose of this study is to determine the implementation of Aceh Qanun Number 8 of 2016 on the Halal Product Assurance System (The Aceh Qanun on Halal Label) on Micro, Small, and Medium Enterprises (MSMEs) and to understand the supervision of the implementation of the Aceh Qanun on Halal Label in West Aceh Regency. The study method used is empirical juridical, producing descriptive data regarding implementing the Aceh Qanun on Halal Label towards MSMEs in the West Aceh Regency. This study is important because data from the Health Office of West Aceh Regency shows that 30 MSMEs have obtained halal certificates. In comparison, 64 MSMEs do not have halal certificates for their marketed food products. Based on the data, this fact does not comply with the provisions of Article 4 of Law Number 33 of 2014 on Halal Product Assurance (hereinafter referred to as the Halal Product Guarantee Law 2014), which obliges all products traded in Indonesia to have halal certification. This provision is in line with Article 4 of the Aceh Qanun on Halal Label, which states that the Halal Product Assurance System aims to provide protection, peace of mind, and legal certainty to the community in consuming and using Halal and hygienic products for physical and spiritual health. The assurance of halal products refers to legal certainty regarding the halal status of products, proven by halal certificates, halal registration numbers, and halal labels. Many MSMEs in West Aceh do not have halal product certificates, so the objectives of the Aceh Qanun on Halal Label have yet to be well implemented. The suboptimal supervision also influences the suboptimal implementation of the Aceh Qanun on Halal Label. This supervision involves various West Aceh Regency Local Government institutions, such as the Ministry of Religious Affairs and the Health Office. The main constraint is the limited funds allocated for such supervision, resulting in suboptimal halal product supervision for MSMEs in West Aceh.

The Medan City Micro, Small and Medium Enterprises (MSME) and Cooperative Service in collaboration with the Halal Product Guarantee Agency (BPJPH) supports the existence of a halal certificate guarantee for MSME actors in the city of Medan. Currently, to implement all of business activity, there is a need for halal certification guarantee management so that MSME business actors can better understand how important a halal certificate is to a business. Indonesia's population is a Muslim-majority country and a potential market for various halal products. The percentage of the number of micro, small and medium enterprises is high. For example, micro businesses can be represented at 98,79%, small businesses 1,11%, while medium businesses 0,09%, and large businesses only 0,01%. This data is based on the 2013 Ministry of Cooperatives and Small and Medium Enterprises and from the total of these business units, micro, small and medium enterprises (MSMEs) act as business drivers in Indonesia. However, the guarantee of a halal certificate issued by the Ministry of Religion is considered to be very difficult for Medan City MSME actors to obtain due too many requirements that must be met by the business actors themselves. The guarantee of a halal certificate is expected to be a spirit to awaken and excite the development of the halal industry in the country, especially North Sumatra. Halal Product Assurance certification and supervision services also consistently apply the principles of integrity, transparency, and avoid all kinds of extortion and gratification.

This research aims to obtain data related to the perceptions of micro, small and medium enterprises around the UIN K.H. campus. Abdurrahman Wahid Pekalongan regarding the obligation to certify halal products. This type of research is field research with descriptive qualitative methods. The data obtained from this research was through interviews with 10 micro, small and medium enterprises located around the UIN K.H. Abdurrahman Wahid Pekalongan campus. Based on research results, it shows that only 10% of micro, small and medium enterprises already have a halal certificate, 80% of micro, small and medium enterprises already know about the existence of halal certificates, 90% of micro, small and medium enterprises consider that halal certification is important for products, and 40% Micro, small and medium enterprises have never received any socialization regarding halal product certification. Apart from that, there are several factors that influence the perceptions of micro, small and medium enterprises regarding halal product certification.. This research contributes to the importance of the role of authorised institutions to maximise the halal certification program for the development of the halal industry in society.

The COVID-19 pandemic has had a significant economic impact. The second Sustainable Development Goals are eliminating hunger, achieving food security and good nutrition. The Government of Indonesia has carried out and implemented Law Number 33 of 2014 concerning Guarantees for Halal Products, since 2019. Indonesia is targeting to become the Center for Halal Food Products in the world in 2024. Micro, Small and Medium Enterprises (MSMEs) have a very important role in the Indonesian economy given their great potential in increasing public welfare. The number of MSMEs in Indonesia reached 64.2 million with a contribution to the gross domestic product (GDP) of 61.07% or 8,573.89 trillion. MSMEs are able to absorb 97% of the total workforce and are able to collect up to 60.42% of total investment in Indonesia. To achieve the government's target to become the center of world halal products and continue to contribute to the Indonesian economy, MSMEs have problems in terms of halal certification. This requires intensive study. The Semarang City Government already has Regional Regulation Number 1 of 2021 concerning halal food products. Local governments have an obligation to protect the public from consuming food and beverages that are not guaranteed to be halal. This research is a qualitative research where the respondents used are MSME actors spread across the city of Semarang. The number of MSMEs in Seamarang City until March 2022 was recorded at 23,984 business actors. This study aims to identify problems related to halal certification for MSMEs, understanding, willingness and increasing understanding and willingness in halal certification. The results the profile of MSMEs in Semarang City is Micro Industry and do not have Business License Codes /Nomor Ijin Berusaha (NIB). The MSMEs do not understand about policy Halal Certificate Product about 84%. They don’t also understand about SIHALAL and self-declare / Sertifikasi Halal Gratis respectively 90% and 72%.

Halal certification on a product nowadays has become a necessity. Because society will be more selective and products that do not have halal certification will be abandoned. Based on the results of interviews with several Micro, Small and Medium Enterprises (MSMEs) in Dukuhdimoro village, especially the food sector, they do not yet have halal product certification, because many business actors in Dukuhdimoro Village have not registered their businesses for halal certification, Lack of dissemination of information about the requirement for halal certification so that there are several business actors who do not know about halal certification, Business actors in Dukuhdimoro Village do not understand the importance of products with halal certification, Business actors in Dukuhdimoro Village still do not know well how to register halal certification for their products and postpone registering it, and Business actors in Dukuhdimoro Village still think that the halal certification process is complicated. The solution to these problems includes socialization and assistance for halal product certification. MSME actors, especially in the food and beverage sector, are given information and assistance regarding halal certification registration. After the socialization and assistance of halal certification of MSME products, business actors, especially food and beverage businesses in Dukuhdimoro Village, understand the importance of products with halal certificates and how to register their products. The final result of this socialization and assistance of halal certification, these business actors registered their businesses to obtain halal certificates.

Nowadays, there are many Micro, Small and Medium Enterprises (MSMEs) products that include a halal logo from MUI but they actually do not have a halal certificate. Whereas the applicable procedure in granting this label permit is based on an officially issued halal certificate whose products must be examined first from how to make to the materials used for production by MUI. The government through MUI in an effort to answer existing problems in accordance with Islamic religious principles, in relation to products from MSMEs by issuing regulations and laws regarding halal product certification sees a clear goal for the economic development of a more advanced Indonesian society. The focus of discussion in this study is on how the objectives and benefits of halal product certification from MUI for MSME products when viewed with the development theory of Mochtar Kusumaatmadja. The research method used in this research is normative which is sourced from literature and sourced from Indonesian laws and regulations. The results of this study indicate that the objectives of halal product certification synergize with the current state of Indonesian society where this is evidenced by the existence of legislative policies and applications where the objectives for halal product certification are for the needs and interests of the Indonesian people, especially Muslims. In addition to the interests of Muslim consumption which is guaranteed to be halal by the MUI fatwa, another goal that the government wants to achieve is as an economic development strategy for the Indonesian people so that it can advance MSMEs as producers of halal products whose products are currently more in demand and sought after, especially by Muslim Indonesians so that the halal certification can give confidence to the public with a guarantee that the product is halal through research conducted by MUI and MUI's official determination so that in the end it can increase the purchasing power of the Indonesian people towards domestic MSME products. In addition, with the export of products made by MSMEs that have carried out international / global halal certification of their products, it can increase the number of exports of domestic products where this clearly affects the increase in foreign exchange and reflects the development and development of the Indonesian economy. Keywords: Halal, Certification, Legal Development. Abstrak Dewasa ini banyak produk Usaha Mikro Kecil dan Menengah (UMKM) yang mencantumkan logo halal dari MUI tapi sebenarnya mereka belum memiliki sertifikat halal. Padahal prosedur yang berlaku dalam pemberian izin label ini adalah berdasarkan sertifikat halal yang dikeluarkan secara resmi yang produknya harus diteliti terlebih dahulu dari cara membuat hingga bahan yang digunakan untuk produksi oleh MUI. Pemerintah melalui MUI dalam usaha menjawab persoalan-persoalan yang ada sesuai dengan kaidah agama Islam, kaitannya dengan produk dari UMKM dengan mengeluarkan pengaturan dan peraturan perundang-undangan mengenai sertifikasi produk halal melihat tujuannya yang jelas demi pembangunan ekonomi masyarakat Indonesia yang lebih maju. Fokus pembahasan pada penelitian ini ialah mengenai bagaimana tujuan dan manfaat sertifikasi produk halal dari MUI terhadap produk UMKM apabila dilihat dengan teori pembangunan Mochtar Kusumaatmadja. Metode penelitian yang digunakan dalam penelitian ini ialah normatif yang bersumber pada literatur kepustakaan serta bersumber pada peraturan perundang-undangan Indonesia. Hasil penelitian ini menunjukkan bahwa tujuan sertifikasi produk halal bersinergi dengan keadaan masyarakat Indonesia saat ini dimana hal tersebut dibuktikan dengan adanya kebijakan legislasi dan aplikasi dimana tujuan untuk sertifikasi produk halal itu untuk kebutuhan dan kepentingan masyarakat Indonesia khususnya umat Muslim. Selain kepentingan konsumsi umat muslim yang terjamin kehalalannya dengan adanya fatwa MUI tersebut, tujuan lain yang ingin dicapai oleh pemerintah ialah sebagai strategi pembangunan ekonomi masyarakat Indonesia sehingga dapat memajukan UMKM sebagai produsen produk halal yang saat ini produknya lebih banyak diminati dan dicari khususnya oleh masyarakat Indonesia yang beragama Islam sehingga dari adanya sertifikasi halal tersebut dapat memberikan kepercayaan pada masyarakat dengan adanya jaminan bahwa produk itu halal melalui penelitian yang dilakukan MUI dan penetapan resmi MUI sehingga pada akhirnya dapat meningkatkan daya beli masyarakat Indonesia terhadap produk UMKM dalam negeri. Selain itu, dengan adanya ekspor produk yang dilakukan oleh UMKM yang sudah melakukan sertifikasi halal bertaraf internasional/global produknya, dapat meningkatkan jumlah ekspor produk dalam negeri dimana hal tersebut jelas berpengaruh pada peningkatan devisa negara dan mencerminkan adanya perkembangan dan pembangunan ekonomi Indonesia. Kata kunci: Halal, Sertifikasi, Pembangunan Hukum.

Halal Product Guarantee is legal certainty regarding the halalness of a product as evidenced by a halal certificate. Regulations regarding halal certificates are carried out based on Law Number 33 of 2014 concerning Halal Product Assurance (“Law 33/2014”). This provision requires all products to have a halal certificate. This certificate is hoped to add the value of the product to be absorbed by the market more. However, the problem is that not all business actors or industries can implement halal guarantees. Micro, small, and medium enterprises (MSMEs) have weaknesses in the documentation and halal traceability. These two things become one of the criteria for the halal assurance system to get a halal certificate. We need a computerised information system that can help SMEs document and trace. Meanwhile, blockchain technology is needed for documentation transparency, which effectively keeps track of information and transactions. The system is proven to be safe and transparent. Because when the transaction takes place, all parties can see public access.

This study aims to analyze the opportunities and challenges faced by Micro, Small and Medium Enterprises (MSMEs) actors in the halal product certification process in Sidoarjo Regency. Halal certification is an important instrument in ensuring the halalness and safety of products, especially in the food and beverage sector, which is mostly consumed by the Muslim community. This research uses a descriptive qualitative approach with data collection techniques in the form of semi-structured interviews, field observations, and documentation studies. The main informants consist of MSME players, representatives of the Cooperative and SME Office, and related institutions such as MUI/LPPOM. The results show that the main opportunities for halal certification for MSMEs lie in increasing product competitiveness, wider market access, and policy support from local governments. However, the certification process still faces various challenges, such as lack of understanding of procedures, financial limitations, lack of human resources, and limited access to information and assistance. In addition, not all businesses are able to trace the halalness of raw materials thoroughly. This study recommends strengthening the synergy between the government, certification bodies, and businesses through integrated facilitation programs, simplifying procedures, and increasing halal literacy. Inclusive and efficient halal certification is expected to encourage the growth of competitive and sustainable MSMEs.

AIM: The purpose of the study was to know the regulation on halal and health guarantee of Indonesian snacks such as cilok (tapioca balls), grilled meatballs, meatball and chicken noodles, dawet drink (traditional drink from rice flour and coconut milk), crackers, and grass jelly drink. Such snacks and drinks are loved by all levels of society in Indonesia and are often sold by street vendors in various places. METHOD: This research uses a juridical-sociological approach, by analyzing the primary source of data, which is by directly observing, interviewing, and educating the society and the small-scale sellers on the important sense of the halal product and the halal product certification. Apart from that, the primary data are the Law No. 8 of 1999 on the Consumer Protection, the Law No. 33 of 2014 on the Halal Product Guarantee, and the Governmental Decree No. 31 of 2019 on the Halal Product Certification. RESULTS: The realization of consumer protection requires good coordination between the government and/or regional governments, business actors, and the community as consumers. The need for halal and healthy products is not only for Muslim communities but also for non-Muslim communities, because halal products are certainly guaranteed of the products’ hygiene and safety. CONCLUSION: There is still a lack of understanding and compliance by the small business owners on the halal and healthy products from the manufacturing process up to the distribution of the products to the public.

This study aims to examine the legal policy on halal products for micro, small, and medium enterprises (MSMEs) after the enactment of Government Regulations in lieu of Law No. 2 of 2022 concerning Job Creation. To meet the demand for halal products, government policy is needed to simplify the halal product submission system while maintaining its production by MSMEs in Indonesia. Based on data from the Indonesian Statistics Agency, Indonesia is a Muslim country with 237.53 million Muslims, accounting for 86.9% of the total population. This indicates a significant need for halal products. MSMEs are one of the sources of halal products; hence, the government needs to enact laws that facilitate their production procedures. Objectively, the requirement to have halal certification, as mentioned in Article 4A of Government Regulation in Lieu of Law No. 2 of 2022 concerning Job Creation, is based on halal declarations from MSME actors. These actors make halal declarations based on the guidelines set by the Halal Product Guarantee Agency (BPJPH). The ratification of this regulation aims to strengthen MSMEs and support the increase in halal products. Therefore, a legal approach based on primary legal materials related to legislation and secondary legal materials based on documents that support this study was adopted. In addition, data from the Ministry of Cooperation, Micro, Small, and Medium Enterprises reveal that there are 8.71 million MSMEs in Indonesia. This potential needs to be facilitated by policies to simplify the production of halal products with a measurable process based on statutory provisions.

With its diverse nature and supported by thousands of delicious foods and beverages, East Java Province, Indonesia has the potential to be promoted as a center of tourism and culture. The East Java Governor targets all food products to have halal certification by 2024. Therefore, the East Java government targets that 1.5 million Micro, Small, and Medium enterprises (MSMEs) must have halal certification. Unfortunately, the halal certification achievement is still currently far from the target. Thus, how to increase the legal awareness of business owners and the population of East Java to care for Indonesian halal products? And what are the strategies carried out to achieve these targets? This was qualitative research with an empirical approach. It employed the descriptive-explorative analysis of the researched issues. From this research, it was shown that the legal awareness of business owners on halal product certification and labeling from the aspects of legal knowledge, understanding, and compliance is already relatively good, although 42% of them are still in the process of registering for halal certification. Meanwhile, the East Java residents’ legal awareness of using halal products is still 45%, which is quite low. In achieving the target of increasing legal awareness of halal products, the provincial and city/regency governments and campus halal institutions carried out some efforts by facilitating the registration of halal certification, providing free halal certification, as well as establishing socialization, seminars, and guiding.

Certification education is an effort to increase business actors' knowledge about halal products. MSME actors are given an understanding of the product halal certification process. Halal certification is a series of processes that must be passed by business actors, both individuals and business entities in the form of legal entities or not legal entities to obtain halal certificates. Halal certificates are obtained through several stages of examination to prove that the raw materials, production process, and product halal assurance system at a company are in accordance with the standards set by LPPOM MUI.
 According to Law Number 20 of 2008 concerning Micro, Small and Medium Enterprises, it emphasizes that micro, small and medium enterprises (MSMEs) are productive economic businesses.
 Indonesia requires halal certification since October 17, 2019 with a maximum timeline of October 17, 2024 for food and beverage products. this means that after that date food products that do not have halal certification are prohibited from being traded. there are more than 7 MSMEs in bantarsari village, rancabungur subdistrict, bogor regency and the potential for business development. the types of businesses are generally micro, small and medium enterprises, including rengginang, renggining, guava sponge, guava dodol, banana chips, cassava chips, pickled guava and others. The target of this MSME is generally residents of RT. 005/006 and the people of bantarsari village.

Many local products produced by SMEs in Jember circulating without halal labeling makes the authors compelled to do community service about literacy of halal certification products. Some MSME actors have made changes by managing the halal certification process for their products, so as to increase public confidence in making purchases, which has an impact on increasing product sales turnover. However, the number of business actors who carry out the certification is not comparable to the number of products produced by MSMEs circulating without halal certification. This paper describes the literacy assistance program carried out by the author in its function to provide understanding and knowledge related to halal certification in several MSMEs in Sumbersari District, Jember Regency. Our service program through literacy workshops carried out in two sessions, namely the first session providing theoretical exposure about the meaning of halal products and halal certification, then the next session providing stages of the process of obtaining halal product certification and examples of MSME actors who have implemented it. The results of this community service program have a positive impact on MSME actors, namely understanding the importance of obtaining halal certification and its effect on sales volume. In addition, MSME actors also understand how the stages of managing halal product certification are.

Halal product certification plays a crucial role in ensuring product safety, enhancing consumer trust, and expanding market opportunities, particularly for Micro, Small, and Medium Enterprises (MSMEs). However, many MSME owners lack awareness of its importance and face challenges in the certification process due to limited knowledge and resources. This community service program, conducted in Bujung Buring Village, Tanjung Raya District, Mesuji Regency, Lampung Province, aims to address these issues by increasing MSMEs' understanding of halal certification and assisting them in obtaining certification. The study employs the Participatory Action Research (PAR) method, integrating research with social change by involving MSMEs throughout the planning, implementation, and evaluation stages. The program includes potential and problem mapping, certification awareness campaigns, and direct assistance in the halal certification registration process. The results indicate a significant improvement in MSME owners’ understanding of halal certification. Additionally, MSMEs reported increased confidence in marketing their products to a broader consumer base. This initiative demonstrates the effectiveness of community-based interventions in promoting halal certification and can serve as a model for similar programs in other regions. Further research and policy support are recommended to sustain and expand halal certification initiatives for MSMEs, ensuring wider adoption and compliance with halal product regulations.

This community engagement program aims to enhance the village’s economic self-reliance and social resilience through a participatory and collaborative approach involving women-led micro, small, and medium enterprises (MSMEs), youth, children, and the village government as key partners. The implementation stages began with village potential mapping through focus group discussions, followed by business legalization assistance including the issuance of Business Identification Numbers (NIB) and halal product certification along with training in business management, product innovation, and digital marketing. The results demonstrate a significant increase in local capacity and competitiveness: several women-owned MSMEs successfully obtained NIB and halal certificates, the process of establishing a culinary and souvenir center (Pujasera) as a hub for local product promotion was successfully initiated, and a digital marketing network was developed to expand market access, while a more child-friendly and gender-equitable village environment was fostered. These achievements confirm that a participatory and collaborative model can effectively create an inclusive, competitive, and sustainable village ecosystem, while also making a tangible contribution to the advancement of knowledge.