Obligatory Halal Certification for Mses in Indonesia: the Need for Sustainable Funding Support
Year: 2024
Type: article
Abstract: This research explores the critical need for sustainable funding to support the obligatory halal certification of Micro and Small Enterprises (MSEs) in Indonesia. Mandatory halal certification, which ensures products meet Islamic dietary laws, was introduced to promote consumer trust and expand market opportunities. However, MSEs often face significant challenges due to limited financial resources, hindering their ability to comply with certification requirements. The study aims to understand the financial challenges faced by MSEs in meeting halal certification requirements and to propose viable solutions. Data were collected through in-depth interviews with key stakeholders, including MSE owners, certification bodies, and financial institutions. A content analysis of the interview data was conducted to identify common themes and insights. The findings reveal significant barriers to obtaining halal certification, primarily due to the high costs involved and the limited financial resources of MSEs. The study underscores the necessity for a comprehensive funding strategy to ensure that halal certification is accessible and sustainable for all MSEs, ultimately contributing to their growth and the broader economic development of Indonesia. Recommendations include the implementation of government subsidies, financial incentives, and partnerships with private sectors to alleviate the financial burden on MSEs.
Source: iBAF e-Proceedings
DOI: 10.33102/r0790423
Institutions: Universitas Tazkia, Universiti Sains Islam Malaysia
Language: English
Subfield: Sociology and Political Science
Field: Social Sciences
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4404772461