p–ISSN: 2723 - 6609 e-ISSN: 2745-5254
Vol. 5, No. 6 June 2024 http://jist.publikasiindonesia.id/
Doi: 10.36418/jist.xxxx.xxx 2886
Legal Effectiveness in the Application of Halal Product
Assurance Certification to MSME Business Actors According
to Law Number 33 of 2014 concerning Halal Product
Assurance
Wiwik Sri Widiarty
Universitas Kristen Indonesia
Email: [email protected]
*Correspondence
ABSTRACT
Keywords: Halal
Certification, Halal
Product Assurance,
MSMEs.
Law Number 33 of 2014 concerning Halal Product
Assurance (JPH Law) aims to protect consumers and
increase the competitive ability of Indonesian halal products
in the world market, which is included in the aspects listed
in the JPH Law, namely the obligation for business actors to
obtain halal certificates for goods that business actors
produce and trade. The focus of the study aims to evaluate
the extent of legal effectiveness in the application of halal
product assurance certification by MSME business actors.
The research method used is qualitative with techniques in
collecting data, namely literature studies. After the data is
collected, data analysis is carried out which includes the
stages of data simplification, data presentation and
conclusion making. The conclusion of the study explains
that the effectiveness of the law in implementing halal
product assurance certification for MSME business actors is
still at a low level. Several obstacles were identified, such as
lack of knowledge about the JPH Law and the halal
certification process, the relatively expensive cost of halal
certification, the halal certification process which is
considered complicated and convoluted and lack of
assistance and socialization from the government.
Introduction
Demographic data shows that the majority of Indonesia's population is Muslim,
with a total of 229.62 million people or 87.2% when compared to Indonesia's population
of 269.6 million people. When viewed in the context of the large global Muslim
population is calculated to reach a value of 2.2 billion in 2030, which is around 23% of
the total global population, the Indonesian Muslim population contributes 13.1% of the
total Muslim population in the world (Ministry of Religious Affairs, 2020).
The high number of Muslim population in Indonesia is in line with the need for the
availability of halal food in the country. So with the majority of the population practicing
Islamic religious principles, the demand for goods in the form of halal food and beverages
Legal Effectiveness in the Application of Halal Product Assurance Certification to MSME
Business Actors According to Law Number 33 of 2014 concerning Halal Product Assurance
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 2887
becomes very important, this includes not only meeting daily needs, but also for the needs
of the food industry, such as restaurants, catering, and food producers. Thus, urging the
government and producers to ensure that the halal product certification system runs
effectively to meet these needs widely and evenly throughout the country.
The government acts to meet the needs of halal food by implementing policies
through Law Number 33 of 2014 concerning Halal Product Assurance (JPH Law). The
regulation is designed to protect consumers and increase the competitive ability of
Indonesian halal products in the world market, which is included in the aspect of the JPH
Law, namely the responsibility of business actors to hold halal certificates for the products
they produce and sell. Thus, the implementation of the JPH Law is expected to ensure
that the products traded include the inaugurated halal standards, so that Muslim
consumers can be sure that the products are suitable for consumption in accordance with
the understanding of Islam.
According to Minister of Tourism and Creative Economy Sandiaga Uno is
optimistic that the goal for all micro, small and medium enterprises (MSMEs) in
Indonesia to get halal certificates before October 18, 2024 will be realized. He stated that
the state would later be able to provide support to MSMEs to obtain halal certification
through coordination with various relevant ministries, agencies, and institutions. There
are three categories of products that are required to have halal certification, such as goods
in the form of food and beverages, basic components, and additional components in food,
then goods or services in slaughter. Meanwhile, the Ministry of Cooperatives and SMEs
(Kemenkop UKM) has a different view, they are worried that the policy will provide
difficulties for MSME producers, therefore related parties expect a suspension of
activities in the policy (Ayudiana, 2024). Therefore, efforts to achieve this target require
effective legal implementation in the application of halal product assurance certification.
Previous research by (Lusianti, 2024), explained that the first point of law
enforcement performance regarding the responsibility of halal certification for MSME
products in Pulung District, Ponorogo Regency has succeeded well. This phenomenon is
reflected in the ongoing responsibility, namely the extension program. In addition, there
are also trials of assistance for populations constrained by NIB, which are included in the
registration requirements for halal certification. The second point is that the application
of population understanding to meet the responsibility of halal certification for MSME
production in Pulung District, Ponorogo Regency is still unsuccessful. The obstacle that
causes the low level of public understanding to have halal certification is that producers
have not been actively or lack motivation from their own individuals to register halal
certification of their products, then there is still a lot of belief that the population does not
ignore the existence of halal certification.
Another study by (Hidarya & Badrudin, 2024) shows that the effectiveness of laws
related to halal product assurance, namely Law Number 33 of 2014 concerning Halal
Product Assurance and Law Number 6 of 2023 concerning Job Creation for MSME food
and beverages in Cilodong District, Depok City, has not run well, even though there has
been a program to make free halal certificates from the Depok City Government. And this
Wiwik Sri Widiarty
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2888
study found several factors that cause MSME actors not to have halal certificates are
producer trust in the halal production of their products, the lack of insight and views of
producers in halal certification, the lack of motivation from producers to register halal
certification, the many assumptions that making halal certification is so complicated, and
finally the lack of performance of the program carried out by the Depok City government.
These findings can be the basis for more effective policy formulation in
encouraging MSME participation in halal certification programs, as well as helping to
increase understanding of the implementation of related laws in the context of MSMEs.
Then the research contribution can provide studies on law and economics, through
describing how certain legal regulations affect business practices and the growth of
MSMEs in the halal industry. The research will focus on evaluating how far the
effectiveness of the law in the application of halal product assurance certification to
MSME business actors.
Method
The research utilizes qualitative research methods. Qualitative method is a method
used to understand events in life according to a holistic and deep view. This approach
allows researchers to explore and understand various aspects of complex social contexts,
such as human behavior, perception, motivation, and interaction, using narrative
description and language as the main tools of analysis (Hennink et al., 2020). Data
collection was carried out meticulously using literature studies. This process includes
tracing, reviewing, and synthesizing information relevant to the research objectives.
Researchers use a variety of reading materials with the aim of gaining deep insight into
the theme of the research, as well as to support the arguments and findings put forward in
the research. The type of data used in data collection is secondary data obtained through
Google Schoolar. After the data is collected, analysis is carried out in three main steps,
namely data simplification, data presentation and finally conclusions from the data.
Results and Discussion
The Micro, Small and Medium Enterprises (MSMEs) sector encourages productive
economic activity, emerging as part of individual efforts to meet the demands of life every
day. In addition to meeting individual needs, MSMEs also have an important role as
economic drivers for the communities and regions where these businesses operate
(Indrawati &; Rachmawati, 2021). In Indonesia, MSMEs are one of the most dominant
business fields, carried out by various producers. MSMEs include types of businesses that
are managed by both individuals and companies on a relatively small scale. This means
that MSMEs are economic activities that are carried out with limited capital and resources
(Karimah et al., 2022).
Currently, the business that occurs is in a very fast development, then contributes
to the increase in the number of MSMEs. The increasing number of MSMEs will directly
increase competition in the market. It should be recognized that globalization factors have
made the business environment for MSME players more stringent and competitive in an
Legal Effectiveness in the Application of Halal Product Assurance Certification to MSME
Business Actors According to Law Number 33 of 2014 concerning Halal Product Assurance
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 2889
effort to gain market share. In the midst of the challenges faced, MSME players tend to
want to strengthen their position in the increasingly fierce competition in the era of
globalization that is increasingly connected internationally. They realize the importance
of adapting to the rapidly changing and increasingly complex business environment to
remain relevant and competitive (Supriandi, 2022).
To have competitiveness in the global market, MSME producers must be asked to
improve the quality of the products they offer. This is because good product quality will
have a direct impact on consumer or customer satisfaction. When consumers feel satisfied
with the goods purchased, consumers tend to return to purchase those goods in the future
(Winasis et al., 2022). Especially in the food and beverage sector, compliance with
production standards is very important.
Business actors are obliged to ensure that the food produced complies with the
quality of food safety. This is necessary to prevent repercussions, in the event of medical
problems or death for consumers who use the product. Consumers also have the right to
obtain clear data about food production goods at the time before they obtain and consume
them. Product data may include product source, safety level, quality, nutritional value,
and other related information. Therefore, regulations on brands and information on food
products are needed so that consumers can make the right choice based on actual facts
(Hidayat & Siradj, 2015).
One of the information, namely about halal food and beverage products, is a very
crucial aspect, especially in countries that have a Muslim population such as Indonesia.
Due to the large number of Muslim communities in the world, Indonesia has opportunities
for potential trade areas for halal products. Certainty about halal products is very
important for Muslim consumers. For consumers who are Muslim, if you choose and
consume one of the food products, not only consider the usefulness or practicality of the
product, but also pay attention to its halal. This is because Muslim consumers perceive
that consuming halal food is included in adherence to religion and can provide spiritual
benefits (Ananda, 2016).
Paying attention to halal aspects in daily life is an obligation for every Muslim,
because this is a direct command from Allah as stated in the Quran. One of the verses that
affirms the importance of consuming halal is verse 88 of Surah Al-Maidah. This verse
emphasizes that humans should consume the sustenance that has been given by Allah
which is lawful and good, and reminds them to remain devoted to Him (Aliyudin, Abror,
Khairuddin, & Hilabi, 2022). Therefore, for Muslims, concerns about halal food and
beverage products remain a major concern. Ensuring that the products consumers
consume have been tested for halal quality is a crucial part of carrying out religious
observance. Related to this, the role of the state has an obligation to provide security for
its people, also including ensuring that the products that have been traded have met the
quality of halal that is expected by all Muslims (Hartati, 2019).
In this case, the Government enacted Law No. 33 of 2014 concerning Halal Product
Assurance (JPH Law) as a step to ensure legal justice in protecting users of food products,
originating from domestic producers or those from foreign imports. This JPH Law aims
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Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2890
to regulate product halal standards, certification processes, and supervision of the
production and distribution of food products. Thus, the JPH Law becomes the basis for
the government in monitoring the standards and halality of food products, then ensuring
trust for users in the safety of products consumed.
The JPH Law aims to ensure continuity in the halal production process by business
actors through the implementation of the Halal Assurance System. This means that every
business actor must be responsible if their food products produced or sold products have
halal certificates. Thus, it is mandatory for every business actor to have halal certification
for their products, in order to provide legal certainty for consumers who utilize these
products (Hartati, 2019). An important point in the JPH Law is the obligation for business
actors, including Micro, Small and Medium Enterprises (MSMEs), to have a halal
certificate for the results of products that business actors produce and sell. This confirms
that the provisions regarding halal certification are not only for large-scale companies,
but also for MSME business actors.
Food products including halal food and beverages, as defined in Article 1 point 2
of the JPH Law, are products that have been recognized as halal based on the provisions
of Islamic teachings. Halal products refer to goods that are permitted or allowed to be
consumed according to the teachings of Islam. Etymologically, the expression "halal" is
taken in Arabic i.e. it can be interpreted as "permitted" or "permissible". According to the
context of everyday life, the term "halal" tends to be used in designating food or drinks
that are allowed to be consumed in accordance with the principles of Islamic sharia
(GURNING, 2022).
From this understanding, it can be explained that halal products are products that
are produced, processed, or presented in accordance with Islamic religious provisions that
determine what Muslims can and cannot consume. This includes production processes
that do not violate the rules established in Islam, such as the use of ingredients that are
considered halal, manufacturing methods that do not contradict the Shari'a, and ensuring
that the product is not contaminated with substances that are considered haram.
According to the guidelines for the Ministry of Religious Affairs Halal Certificate
in 2003 (Chairunnisyah, 2017), halal products must meet the following aspects:
1. The ingredients used are free from pork content or food originating from pigs.
2. Free from the content of haram ingredients, namely ingredients derived from parts of
human organs, blood, feces, and other similar.
3. The materials used must be sourced from halal sources and must be processed in
accordance with the provisions of Islamic law.
4. Does not contain khamer or liquor.
This criterion is the basic standard that must be complied with by business actors
so that their products meet the requirements to obtain halal certification. According to
Article 1 of the JPH Law, it is explained that a halal certificate is an official statement of
halal from the production of business actors tested by the Halal Product Assurance
Organizing Agency, based on recorded guidelines according to the provisions of the
Indonesian Ulema Council (MUI). From this, it can be concluded that halal certification
Legal Effectiveness in the Application of Halal Product Assurance Certification to MSME
Business Actors According to Law Number 33 of 2014 concerning Halal Product Assurance
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 2891
is a guarantee for the Muslim community that the product meets officially recognized
halal standards. In addition, halal certificates also include requirements for producers to
obtain permits for the provision of halal marks printed on their products obtained from
authorized institutions (Faika & Ilyas, 2021).
Each product that wants to be sold and distributed must have halal information
obtained with the previous halal certification process. This means that every product must
go through an assessment process that ensures compliance with halal standards before
being traded or distributed to consumers. To obtain halal marks on their products,
producers can first go through several stages as follows, (Baihaki, Al Adawiah, &
Hermawati, 2022):
Entrepreneurs submit requests for halal certification to the Halal Product Assurance
Organizing Agency (BPJPH) while completing the completeness of the required data
such as entrepreneur information, profiles and categories of goods produced, other
product catalogs and the composition of materials used, as well as information about the
halal product assurance system.
BPJPH then checks the data on halal certification requirements. If the data has been
met, BPJPH appoints a Halal Inspection Agency (LPH) that will conduct further
inspection of the product. This process usually takes about 2 business days.
LPH conducts inspection and testing of halal products for 15 working days.
The evaluation and test results from LPH are reviewed by the Indonesian Ulema
Council (MUI) in order to determine the halalness of products using halal decision
hearings. The procedure for determining halal products at MUI takes a maximum of 3
days.
After MUI decides on the halal provisions of products through halal decisions,
BPJPH issues halal certificates based on the results of MUI fatwas. The process of issuing
halal certificates is usually completed within one working day.
The halal certificate that has been obtained can be valid within 4 years since it was
issued by BPJPH, but it is different if there is a modification in the materials used in the
product. Business actors can extend the halal certificate that is carried out no later than 3
months before the halal certificate has expired. To extend the halal information of the
product, business actors complete the renewal application by including a copy of the old
halal certificate and a certificate stating if the product has not changed in the composition
of ingredients (Murtius, Fithri, & Refdi, 2021).
According to (Aprilia & Priantina, 2022), halal certification has an important
function in gaining buyer trust, growing trade, and reaching wider marketing for products.
Then, the sign of halal products is also the main strategy in order to maintain customer
loyalty, develop business actors' competitive resilience, and add value to the product.
Halal information has a very useful impact on increasing profitability and helping
expansion in the international market to create export opportunities for producers,
especially for Micro, Small and Medium Enterprises (MSMEs).
Providing legal guarantees for all production products to be distributed and sold
will have an impact on profits for business actors. This is because products that have halal
Wiwik Sri Widiarty
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2892
certification have become a global habit that has good consequences for the business field.
Products labeled halal are not only preferred by Muslim buyers, but buyers from non-
Muslim circles are also looking because they consider it has been confirmed to have good
quality and is beneficial for consumer health (Baihaki et al., 2022). Ensuring the quality
of halal food is also not dangerous has promising business prospects, has a halal image
or certification, business actors are able to attract loyal consumers, not only from
Muslims, but from non-Muslim consumers as well. On the other hand, for business actors
who do not have products with halal information in the market located in Indonesia, which
in fact has a Muslim population, their products tend to be less preferred, which can then
cause losses to the business of these business actors (Hidayat & Siradj, 2015).
The findings show that halal label certification provides broader benefits than
simply providing consumers with assurance on the products they buy. Halal certification
also provides significant benefits for business actors in increasing competitiveness and
expanding their business. Halal certification is not only an act of adherence to religious
values, but also a strategic investment for companies to be able to improve their reputation
in the eyes of consumers, increase sales, and increase their competitiveness to face
increasingly fierce market conditions in competition.
The implementation of halal product assurance certification is very important for
MSMEs, but the effectiveness of the law in its implementation is still relatively low.
According to data from the Institute for the Assessment of Food, Drugs and Cosmetics of
the Indonesian Ulema Council (LPPOM MUI) in December 2023, as many as 31,754
companies have obtained halal certificates for a total of 1,063,851 products. However,
data from the Central Statistics Agency shows that the number of Slaughterhouses / Ungas
(RPH / U) that have been certified halal by the LPPOM MUI Halal Inspection Agency
(LPH) has only reached 900 RPH / U, out of a total of 1,690 RPH / U that are still active
in 34 provinces in Indonesia. In addition, there are 49 logistics service companies,
including distribution and storage, and 10 packaging service companies that have been
certified halal. Then there are many other products that must have halal information,
including raw materials, additives to food products, and additional ingredients as
complements. For example, flavors are used to create taste and fragrance sensations for
food and beverage products that are classified as chemical types, but need to be certified
halal because they are ingredients needed in making products (LPPOM MUI, 2023).
The identified factors cause the low effectiveness of halal certification such as, first
according to (Ananda, 2016), the number of producers who do not carry out halal
certification on their products due to lack of knowledge or insight into the Halal Product
Assurance Law (JPH Law). Then also most of the businesses undertaken by business
actors are included in the small scale, which makes them tend not to pay attention to the
halal certification process. Furthermore, lack of knowledge about halal certification
registration procedures is also a significant factor. Finally, the assumption that raw
materials used in production are automatically considered sacred and halal materials also
play a role in causing business actors to be reluctant to carry out halal certification.
Legal Effectiveness in the Application of Halal Product Assurance Certification to MSME
Business Actors According to Law Number 33 of 2014 concerning Halal Product Assurance
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, Juny 2024 2893
Meanwhile, according to Wijayanti et al. (2024), the obstacles faced by food
MSMEs to obtain halal certification are the cost and complexity of the certification
procedure. The halal certification procedure requires tariffs for the review, check, and
monitoring process carried out by the authorized certification body. This can make it
difficult for food MSMEs to obtain halal certification due to limited financial resources.
The findings in the article (Alfarik et al., 2023) also note several challenges related
to halal certification. One of them is the lack of insight of business actors in the
community about the role of halal certification. In addition, the view of expensive tariffs
as well as the complexity of the process of applying for certification is also an obstacle in
encouraging business actors to obtain halal certification. According to (Soemitra &
Nawawi, 2022), not all entrepreneurs, especially SMEs, can easily get halal product
guarantees. This is due to a number of reasons, including lack of assistance from related
parties, lack of socialization about the halal certification process, and requirements that
are considered complicated for entrepreneurs.
The findings show that the implementation of halal certification for MSME
business actors is still experiencing obstacles in terms of legal effectiveness. The
obstacles that cause such low effectiveness include a lack of understanding of the JPH
Law and the halal certification process, the high cost of obtaining halal certification, and
the complexity and complexity of the halal certification process. In addition, the lack of
assistance and socialization from the government is also an influential factor.
This shows the need for further efforts to improve understanding, accessibility, and
support for MSME actors so that they can be more effective in implementing halal
product assurance certification. When the guarantee exists and is applied optimally, it will
increase public confidence in MSME products, which ultimately has a broad impact on
the development of MSME profits and the country's economic progress. This means that
strengthening the halal certification system for MSME actors will not only provide
benefits for them individually, but will also contribute to economic growth and state
welfare.
Conclusion
Legal effectiveness in implementing halal product assurance certification for
MSME business actors is still at a low level. Obstacles identified as factors of low
effectiveness include lack of understanding of the Halal Product Assurance Law (JPH
Law) and the halal certification process, high costs to obtain halal certification,
complexity and complexity of the halal certification process, and lack of assistance and
socialization provided by the government in this regard. This shows that further efforts
are still needed to improve understanding, accessibility, and support for MSME actors so
that they can be more effective in implementing halal product assurance certification.
Wiwik Sri Widiarty
Jurnal Indonesia Sosial Teknologi, Vol. 5, No. 6, June 2024 2894
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