The Role of Stakeholders in Accelerating Halal Certification for SMEs

Abstract

In today’s business landscape, sustainability is imperative for all companies, including Small and Medium-sized Enterprises (SMEs) operating in the food and beverage sector. Specifically, businesses in this sector in Indonesia face the imminent deadline of October 17, 2024, stipulated by Law Number 33 of 2014 concerning Halal Product Guarantees and its derivative regulations. Compliance with these regulations requires SMEs to obtain halal certification, failure of which could jeopardize their business continuity. Despite the significance of halal certification, the number of certified SMEs in Indonesia remains limited. This research endeavors to identify alternative solutions to encourage more SMEs to register their products for halal certification. Employing a qualitative research approach with Interpretative Phenomenological Analysis (IPA), the study involved seven informants, including representatives from SMEs, government officials, a Halal Auditor, and individuals from Sharia Banking. The findings underscore the necessity for comprehensive support to facilitate SMEs in obtaining halal certification. This includes streamlining bureaucratic processes, offering financial assistance, and providing human resources. Collaboration among the government, academic institutions, and the community is crucial in this regard. The study reveals that SMEs require assistance in navigating bureaucratic hurdles, financial support, and human resources. To expedite the halal certification process, it is essential for the government to enact regulations that simplify the certification requirements for SMEs, ensuring compliance without compromising consumer trust. Given the financial constraints faced by SMEs during the certification process, financial aid from the government, academic institutions, and the community is pivotal. Additionally, the provision of competent human resources poses a significant challenge for SMEs, necessitating collaborative efforts from the government, academic institutions, and the community to address this hurdle effectively. In conclusion, this research not only highlights the challenges faced by food and beverage SMEs in obtaining halal certification but also underscores the need for coordinated efforts to support these businesses in their sustainability endeavors. Keywords: SMEs, sustainable business, halal certification, interpretative phenomenological analysis (IPA)