THE EFFECT OF PERCEIVED VALUE OF ECONOMIC BENEFITS TOWARDS SMES HALAL CERTIFICATION INTENTION MODERATED BY GOVERNMENT POLICY REGULATION

Abstract

The purpose of this research was to find out how far the impact of Government policy regulation towards halal certification intention on SMEs in Indonesia. This was underlined by the presence of halal certification in Indonesia that is still low namely around 0.11 percent. One of the Government policies in Omnibus Law is halal certification free for SMEs charge to cope the impact of Covid-19. This research brings out the novelty that is the government policy regulation variable of Omnibus Law as moderation from the value perception of economics benefit based on business operational side towards the halal certification intention of SMES entrepreneurs. This research was descriptive quantitative with purposive sampling method and the samples were 54 SMEs in Salatiga City, Central Java Province, Indonesia. The analysis instrument used SPSS ver. 25. The results of this research show that the government policy is not maximal yet in encouraging SMEs entrepreneurs in doing certification for their product. It is proven from the research results obtaining that moderation variable namely the government policy through Omnibus Law only increases determination coefficient number in the amount of 11.5 percent, so it is necessary to intensify the socialization of free halal certification for SMEs.