Halal certification paradox: legal inconsistency on pursuing innovation and halal correlation in Indonesia

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.

This study examines the sustainability and effectiveness of the Halal Self-Declare Certification Program (Business Actor Statement) for Micro, Small, and Medium Enterprises (MSMEs) in Lampung Province. The program aims to accelerate halal certification and improve MSME compliance with Halal Product Assurance (JPH) regulations. A mixed-methods approach was employed, combining surveys of certified MSMEs, in-depth interviews with Halal Product Process (PPH) facilitators, and regulatory document analysis. Sustainability was assessed across economic, social, and institutional dimensions. The findings indicate that while the program has significantly increased the number of halal-certified MSMEs, sustainability challenges persist, particularly in the consistent implementation of internal halal assurance systems, the capacity and quality of facilitation, and MSMEs’ understanding of critical halal requirements. To ensure long-term sustainability, the program requires strengthened capacity building for PPH facilitators and improved post-certification monitoring through simplified and digitalized systems. The novelty of this study lies in proposing an optimization model for the sustainability of the Sehati Self-Declare Program that integrates halal regulatory frameworks, MSME capacity, and institutional roles within the specific regional context of Lampung Province, offering a more comprehensive and practical approach than previous normative or partial evaluations.

Tujuan sertifikasi halal pada dasarnya untuk melindungi hak-hak konsumen dalam hal ini konsumen muslim. Adanya Undang-Undang Nomor 33 Tahun 2014 tentang Jaminan Produk Halal, tentunya mendorong para pelaku industri pangan dan usaha mikro, kecil dan menengah (UMKM) pangan untuk segera mendaftarkan produknya mendapatkan sertifikat halal. Desa Bilebante sebagai salah satu desa wisata yang sudah masuk kategori Maju dan berada di Kabupaten Lombok Tengah menunjukkan bahwa minat pelaku UMKM untuk mengajukan sertifikasi halal masih rendah. Pengabdian kepada masyarakat ini bertujuan untuk 1) Memberikan pendampingan bagi kelompok UMKM berdasarkan kriteria pengajuan sebagai akselerasi sertifikat halal produk di Desa Wisata Halal Bilebante. 2) Meningkatkan pengetahuan dan keterampilan pelaku umkm dengan memberikan edukasi pengisian SJPH melalui digitalisasi dan registrasi Sihalal. 3) Menyediakan materi KIE terkait pelaksaanaan praktek digitalisasi untuk pengembangan produk umkm baik dari segi legalitasi produk (menyusun SJPH) maupun kualitas produk terutama di bagian packaging dan branding. Hasil pengabdian ini menunjukkan 100% UMKM yang menjadi responden sudah memiliki legalitas usaha yaitu NIB dan sertifikat halal. Setiap pelaku UMKM diberikan fasilitasi kemasan yang menarik dan alat pemasaran berupa website UMKM Desa Bilebante sehingga memudahkan untuk melakukan pemasaran yang lebih luas. Selain itu, pemahaman UMKM terkait kehalalan produk meningkat dengan adanya kebijakan halal. Hal ini menunjukkan bahwa pengabdian dinyatakan efektif dalam proses pendampingan UMKM untuk mendapatkan sertifikat halal. Assistance in Filling Out SJPH Through Digitization and Sihalal Registration for SMEs in the Green Tourism Village of Bilebante, Central Lombok Regency Abstract The primary goal of halal certification is to protect the rights of consumers, particularly Muslim consumers. The enactment of Law No. 33 of 2014 concerning Halal Product Assurance encourages food industry players and small and medium enterprises (SMEs) in the food sector to promptly register their products for halal certification. Bilebante Village, recognized as an advanced tourism village in Central Lombok Regency, exhibits a low interest among SME operators in applying for halal certification. This community service program aims to: (1) Provide assistance to SME groups based on application criteria to accelerate halal product certification in the Halal Tourism Village of Bilebante. (2) Enhance the knowledge and skills of SME operators by providing education on filling out SJPH (Halal Product Assurance System) through digitization and Sihalal registration. (3) Provide communication, information, and education (CIE) materials related to the implementation of digitalization practices for SME product development, focusing on product legality (preparing SJPH) and product quality, particularly in packaging and branding. The results of this program indicate that 100% of SMEs involved as respondents have obtained business legality, including Business Identification Numbers (NIB) and halal certificates. Each SME operator received attractive packaging assistance and marketing tools in the form of a website for Bilebante Village SMEs, facilitating broader marketing opportunities. Additionally, SME understanding of product halalness improved with the implementation of halal policies. This demonstrates that the community service program was effective in assisting SMEs in obtaining halal certification.

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 study aims to assess the contribution of halal certification policy in strengthening the legal status of Micro, Small, and Medium Enterprises (MSMEs), particularly in the culinary sector in Indonesia. Since the enactment of Law No. 33 of 2014 concerning Halal Product Assurance, halal certification has not only become a legal obligation but also serves as a strategic instrument to support the formalization of MSMEs. This research adopts a descriptive qualitative approach through literature review by analyzing various secondary sources such as academic journals, government regulations, and documents related to halal certification and MSME legality. The findings indicate that halal certification policy acts as a key driver in the legalization process of culinary MSMEs, whereby business actors are encouraged to complete other legal documents such as the Business Identification Number (NIB), Home Industry Food Permit (PIRT), and product distribution permits when applying for halal certification. Halal certification provides positive impacts including enhanced product reputation, improved market access, and increased opportunities to obtain formal financing. The Free Halal Certification Program (SEHATI) has proven effective in reducing bureaucratic and financial barriers faced by MSMEs. In conclusion, halal certification has transformed into a strategic asset that not only ensures product compliance with halal standards but also reinforces legal legitimacy and enhances the competitiveness of MSMEs at both national and international levels.

This community service activity was motivated by the challenges faced by Micro, Small, and Medium Enterprises (MSMEs) in fulfilling their halal certification obligations under the Halal Product Assurance (JPH) Law. Literacy and technical barriers in the certification process often hinder the potential for economic independence of MSMEs. Therefore, the Majelis Taklim Contact Body (BKMT) was identified as a strategic partner with a strong community base to reach home-based MSMEs and raise halal awareness at the family level. This community service program aims to increase the awareness and economic capacity of BKMT members and their mentored MSMEs. Specifically, this activity includes increasing understanding of JPH, technical training on developing a Halal Assurance System (SJH), and intensive mentoring to facilitate the acquisition of Halal Certification. The community service implementation method uses a participatory and educational-applicative approach, divided into four stages: preparation (needs identification), outreach (halal education and regulations), technical mentoring (SJH implementation and SiHalal registration), and evaluation and sustainability.The main outcomes of this program are increased literacy and public awareness of the importance of halal certification, the acquisition of Halal Certificates for MSME members of the BKMT, the provision of materials for socialization and assistance with halal certification, and the establishment of a Halal Task Force within the BKMT as a model for sustainability. Thus, this program is expected to achieve Sharia-based economic independence for the community by increasing the competitiveness of MSMEs and ensuring the right and awareness of halal product consumption for Muslim families.

Halal food has become a major concern in the modern era, not only for Muslims but also for non-Muslims due to its guarantees of cleanliness and health. Halal standardization, including halal certification, is an essential requirement regulated under Law No. 33 of 2014 on Halal Product Assurance. Halal certification plays a vital role in gaining consumer trust, expanding markets, and increasing company sales. Therefore, halal certification is crucial for Micro, Small, and Medium Enterprises (MSMEs), particularly for food stalls, as it not only maintains consumer trust but also impacts MSME revenue. This community service activity was conducted to assist MSMEs, specifically the Sweet Hony canteen, in obtaining halal certification. The methods used included socialization, interviews, and document preparation for the halal certification application. The assistance was provided by students with the support of Field Supervising Lecturers (FSL) and the Halal Research Center, Research and Community Service Institute,Mulawarman University. This assistance has resulted in the issuance of a Business Identification Number (BIN) and the ongoing process of applying for a halal certificate.

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%.

This study aims to explore the role of halal certification in enhancing the value of Micro, Small, and Medium Enterprises (MSMEs) products through a review of existing literature and policy frameworks in Indonesia. The research adopts a qualitative systematic literature review method by analyzing national regulations, policy initiatives, and previous empirical studies relevant to halal certification and MSME development. A total of 41 publications from 2020 to 2024 were reviewed, encompassing government reports, scholarly articles, and institutional documents related to the implementation of halal assurance systems. The findings indicate that halal certification contributes significantly to increasing product value, market competitiveness, and consumer trust. The Indonesian government, through the Halal Product Assurance Organizing Agency (BPJPH) and the SEHATI program, has played an important role in facilitating certification processes and strengthening institutional collaboration. However, several challenges remain, including limited financial capacity, technical constraints, low awareness among MSME owners, and the complexity of administrative procedures. The study concludes that effective halal certification requires synergy between regulatory enforcement, financial and technical assistance, and continuous education to enhance MSME readiness. Strengthening digital infrastructure, simplifying verification mechanisms, and promoting stakeholder collaboration are essential for accelerating halal certification and ensuring sustainable MSME growth in Indonesia.

This article examines the challanges of the halal industrial ecosystem by studying halal certification for MSME (Micro, Small, and Medium Enterprises) in Lombok. Halal certification has a good impact on small and medium businesses in Indonesia. Although previous research indicates that the proportion of halal-certified micro, small, and medium enterprises (MSMEs) in Lombok is still under 20%, this figure is steadily increasing, allowing for open competition. This article employs a qualitative methodology with a socio-legal economic analysis approach. Data were gathered through interviews with MSME business owners, Muslim consumers, and halal policy makers in Lombok. The findings reveal that halal certification plays a crucial role in enhancing MSME operations and promoting the development of halal tourism in Lombok. However, the complexity of halal certification requirements and the obstacles MSME faces in Lombok must be ruled out effectively. By increasing knowledge, understanding, and awareness of MSME actors regarding halal certification rules and improving administrative processes related to halal certification, MSME in Lombok will better utilize the market potential for halal products. Keywords: Halal industry, halal certification, MSME, impact of certification

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.

IntroductionCurrently, halal certification is crucial for Micro, Small, and Medium Enterprises (MSMEs). Halal certification, issued by BPJPH based on a fatwa from the Indonesian Ulema Council, acknowledges a product's halal status. Despite high education levels, strong halal awareness, and affordable certification costs, only a few MSMEs in the Kudus Regency have obtained halal certification. This study aims to analyze the influence of education level, halal awareness, and halal certification costs on the halal certification decisions of MSMEs in the Kudus Regency, with religiosity as a moderating variable.ObjectivesThe objective of this research is to analyze the effects of education level, halal awareness, and halal certification costs on halal certification decisions and to examine the role of religiosity as a moderating variable in these relationships. MethodThis quantitative study utilized data from 144 MSMEs in the Kudus Regency, which have not yet obtained halal certification. The data were analyzed using multiple linear regression with moderating effects using EViews. This study tested hypotheses regarding the direct and moderating effects of education level, halal awareness, and certification costs on halal certification decisions.ResultsThe findings indicate that educational level, halal awareness, and halal certification costs significantly influence halal certification decisions. However, religiosity did not moderate the relationship between these variables and halal certification decisions. Higher education levels bring greater awareness of the importance of halal certification, while increased halal awareness positively affects certification decisions. Certification costs are also a significant factor, with lower costs encouraging MSMEs to seek certification. ImplicationsThese results suggest the need for broader educational campaigns focused on the importance of halal certification in increasing MSME awareness. Governments and related institutions should consider providing subsidies or financial assistance to reduce certification costs. Enhancing educational and training programs on halal certification can also drive market demand for halal products.Originality/NoveltyThis research contributes to the understanding of the factors influencing halal certification decisions among MSMEs, highlighting the roles of education, awareness, and cost, while questioning the moderating effect of religiosity. It provides practical recommendations for policymakers to support MSMEs in achieving halal certifications.

Micro, Small, and Medium Enterprises (MSMEs) are obtaining halal certification through self-declared halal certification. The utilization has not reached the maximum potential even though this form of certification is available in Indonesia. Out of 349,834 free halal self-declared certification offered by the government, only 119,662 have been used (BPJPH 2022). Despite the benefits, there are several issues related to the implementation. Only a small percentage of MSMEs have obtained halal certification in developing a strategy to address the issue. Therefore, this research aimed to identify strengths, weaknesses, opportunities, and threats (SWOT) associated with self-declared halal certification as well as propose strategy to increase the use from a stakeholder perspective. SWOT analysis was used to evaluate the potential development strategies of self-declared stakeholders, such as Indonesian Ulema Council (MUI), Halal Product Process (PPH) Assistants, and Halal Product Guarantee Organization (BPJPH). Meanwhile, Analytic Network Process (ANP) method prioritized the four aspects and determined the best strategy for developing halal self-declaration policies. An assertive strategy providing fair information dissemination and optimizing support for PPH assistants was needed to address the issue of low self-declared certification. Based on this research, the government provided a reasonable honorarium for PPH assistants. BPJPH used AI and blockchain technologies to expedite the document collection process for MSMEs and PPH assistants. Additionally, PPH adopted more proactive and creative methods for assistance.

MSMEs (Micro, Small and Medium Enterprises) are the foundation of the Indonesian economy. Indonesia is unique in its economic system, namely an economic system that is based on economic democracy or people's economy. It can be interpreted that the Indonesian economic system has unique characteristics that differentiate it from the economic systems of other countries. MSMEs have a very important role in the economy in Banda Aceh City and MSMEs also absorb a lot of labor. The city of Banda Aceh also still has homework (homework), namely to reduce the poverty rate, the existence of MSMEs can be one solution in alleviating unemployment and poverty in the city of Banda Aceh. One of the MSME locations that is currently developing is in Gampong Lampulo, Kuta Alam District, Banda Aceh City, where local residents are starting to develop MSME businesses such as wooden fish processing businesses (Keumamah), spice processing, food processing, and several other businesses. As we all know, the existence of Gampong Lampulo, which is located on the coast, is a place where fishing boats dock and is also a place for fish auctions, so that fresh fish as a basic ingredient for public affairs is always available. Bookkeeping of financial transactions is one of the important tasks in carrying out or recording business transactions. This bookkeeping is often rarely carried out by Micro, Small and Medium Enterprises (MSMEs) because of limited information in the field of accounting and Micro, Small and Medium Enterprises (MSMEs) focus only on how to do marketing. The MUI Halal Certificate is a written fatwa from the Indonesian Ulema Council which states that a product is halal in accordance with Islamic law. Keywords: Simple Bookkeeping, Halal Certification, MSMEs

The Indonesian government's role in optimizing the halal economy includes initiatives such as the Free Halal Certification Program (SEHATI) for Micro, Small, and Medium Enterprises (MSMEs), which has demonstrated a substantial impact on income levels. Halal certification has been shown to positively affect revenue growth among MSMEs. In Mataram City, in particular, MSMEs experienced significant increases in income following the acquisition of halal certification. The SEHATI program for MSMEs in Mataram is coordinated by various institutions, including the Halal Center at UIN Mataram, the Ministry of Religious Affairs, the Department of Cooperatives and MSMEs, and the Department of Industry and Trade. The aim of this study is to implement and analyze the impact of the SEHATI Free Halal Certification Program on the income growth of MSMEs in Mataram City. This research employs a qualitative methodology, utilizing field research techniques such as observation, interviews, and data collection through documentation. The findings indicate that the SEHATI program has had a significant impact on the income levels of MSMEs in Mataram City. The implementation of the SEHATI program involves several key elements: first, effective communication; second, human resource development; third, the role and attitude of program implementers; and fourth, the organizational structure, emphasizing the importance of collaboration among implementing bodies. The provision of free halal certification through the SEHATI program has notably increased the income of MSMEs in Mataram City, empowering business owners to market their products with enhanced confidence.