The Importance of Halal Certification for the Processed Food by SMEs to Increase Export Opportunities

Abstract

As the largest Muslim population country, Indonesia potentially becomes the largest exporter of halal food products globally, especially to OIC countries with demands for the fulfillment of halal product guarantees and food safety. Currently, BPJPH is assigned as the organizer of halal product guarantees in Indonesia, and MUI remains the party authorized to issue a fatwa on the determination of halalness. This fatwa will be submitted to BPJPH as the basis for issuing halal certificates. The halal certification and assurance systems designed and implemented by MUI have also been recognized and even adopted by halal certifier bodies abroad. Until 2019, only 0.11% of SMEs had halal certificates. Promoting halal certification for SMEs is an important strategy in increasing food exports. In addition, to the obligation to comply with Law number 33 of 2014 on Halal Products Guarantee (Law of JPH). Halal certification significantly enhances the marketability of SMEs products. This paper describes the importance of halal certification of processed foods to increase export opportunities and reviews the government's concrete steps in implementing the Halal Certification for SMEs.