Introduction

The food and beverage industry is experiencing rapid growth, driven by intense competition and supported by advances in efficient production technology. The determination of product halal status now relies on scientific methods and modern technology. The Indonesian government supports strengthening the domestic halal industry through understanding certification and halal assurance; however, increased food imports pose a challenge amid high demand from the Muslim market (1). Halal certification plays a critical role for MSMEs, serving not only as a means of religious compliance but also as a business strategy to reach consumers who prioritize product quality and sustainability (2). Awareness campaigns on halal certification and business licensing processes for MSMEs are highly relevant. The halal status reflects product quality, integrity, and social responsibility, offering broad market potential among both Muslim and general consumers (3).

Despite its significant potential, MSME participation in the halal food and beverage sector remains limited due to capital constraints, competition, technological limitations, inadequate business networks, and limited marketing experience. Understanding halal standards and enhancing product branding are essential factors for business development (4). MSME operators exhibit limited awareness regarding the halal status of their products. Insufficient knowledge, combined with advanced technology, places consumers at risk of purchasing products that lack halal certification. Business practices prioritizing profit without ensuring product halal clarity may harm consumers (5). Due to consumers’ limited capacity to verify the authenticity of halal certificates on food products, the government has enacted regulations addressing this issue. Article 1 paragraph (1) of Government Regulation No. 31 of 2019, implementing Law No. 33 of 2014, defines Halal Product Assurance (JPH) as legal certainty regarding product halal status evidenced by a Halal Certificate (6). According to Law No. 33 of 2014 and its implementing regulations, the initial phase of mandatory halal certification applies to three product categories: food and beverages; raw materials, food additives, and auxiliary materials for food and beverages; and slaughtered products and slaughtering services (7).

The existence of halal certification regulations provides a legal framework to ensure the halal status of food products in the market, thereby reducing uncertainty for Muslim consumers. Halal certification is defined as the official submission and assessment process of food products conducted by authorized institutions to verify their halal status (8). Data from the Halal Product Assurance Organizing Agency (BPJPH) indicates that as of February 2024, fewer than 6% of the 64.4 million MSMEs had obtained halal certification, and only 14% of the 28 million MSMEs in the food sector were certified (9). In Iringmulyo, East Metro, a subdistrict with a significant concentration of food-based MSMEs, only 5 out of 10 interviewed businesses had secured halal certification, and the rest had either not applied or were unaware of the process. This suggests that structural, informational, and administrative barriers continue to hinder the participation of MSMEs in the halal assurance system.

Existing literature highlights multiple factors that influence the uptake of halal certification, including limited access to information, high perceived complexity of the process, low awareness, and minimal institutional support (10-12). However, few studies have explored this issue at the grassroots level in specific communities, such as Iringmulyo. This study aims to fill that gap by examining the knowledge, perceptions, and practices of local MSME actors regarding halal certification.

Methodology

Research Design

This study adopts a qualitative descriptive research design. It aims to explore the level of awareness among Micro, Small, and Medium Enterprises (MSMEs) regarding halal certification in Iringmulyo, East Metro. The research is grounded in field data, gathered directly from key actors in the halal certification process (13).

Data Sources and Sampling

Primary data were collected through semi-structured interviews with 13 informants: 10 MSME actors, one local government official, one Halal Certification Facilitator from the Religious Affairs Office (KUA), and one policymaker. Secondary data were sourced from government publications, journal articles, and institutional documents.

Sampling combined purposive and snowball techniques. The policymaker, local official, and KUA staff were selected purposively based on relevance and expertise. The MSME actors were recruited via snowball sampling, starting with known business owners who then referred others in the community. This approach was used because MSMEs engaged in halal certification are a relatively dispersed and informally networked group.

Data Collection Techniques

This study employed three main data collection techniques: interviews, observations, and documentation. First, semi-structured interviews were conducted, allowing flexible question delivery without predefined structures (14). This approach facilitated the collection of data from 13 informants, including food and beverage MSME operators, local government representatives, halal certification facilitators, and policy stakeholders. Second, systematic observations were conducted to examine the actual conditions regarding halal awareness among micro, small, and medium enterprises (MSMEs) regarding halal certification ownership in Iringmulyo, East Metro District. Third, documentation was utilized as a supplementary data source (15). This included official records, such as lists of MSMEs without halal certification obtained from the local government, as well as those with certification provided by a certification facilitator. Documentation also included photographic evidence of the interview process and monographic records of the research area.

Data Validity

To ensure the validity of the data collected from the research site, this study employed triangulation techniques to validate the findings. This approach aims to verify data accuracy by comparing information obtained from various sources, methods, or informants, thereby enhancing the reliability of the research findings (16). Source triangulation involves comparing data obtained from multiple sources to assess consistency and derive more accurate conclusions.

Data Analysis

Data were analyzed using Miles and Huberman’s interactive model, which involves four key stages (17). The first stage, data collection, involved compiling field notes and transcriptions from interviews, observations, and document reviews. In the second stage, data reduction, relevant information was selected and condensed to focus on key issues aligned with the research objectives. The third stage, data display, organized emerging patterns and themes into clear narrative descriptions and tables to facilitate interpretation. Finally, in the conclusion drawing stage, the data were interpreted iteratively throughout the research process, allowing conclusions to be grounded firmly in field evidence.

Result and Discussion

Halal Awareness of Micro, Small, and Medium Enterprises Related to Halal Certification Ownership

Application for Halal Certification

Halal certification serves as a strategic tool to enhance business competitiveness, particularly by addressing consumer preferences for products with verified halal status (18). In Iringmulyo Subdistrict, business actors have demonstrated growing awareness of the importance of halal certification, reflected in their proactive efforts to obtain it in response to market demands. MSMEs with halal certification generally gain greater consumer trust and enjoy broader market access than their uncertified counterparts (19). The certification process entails more than mere administrative compliance; it requires a deep understanding of halal standards. Possession of a halal certificate is widely perceived as an indicator that a product is made using halal ingredients and produced through hygienic processes that comply with the regulatory provisions (20). This understanding was evident among several MSME actors interviewed. For example, informant 1 emphasized that certification validated her use of halal ingredients and adherence to compliant processing practices (see Quote 1). Similarly, informant 2, a pecel vendor, described halal certification as an assurance that products meet sharia standards, use clean ingredients, and carry trusted labeling (see Quote 2).

However, not all business actors demonstrated a clear understanding of the certification procedures. Some expressed confusion or hesitation. For instance, informant 3 expressed uncertainty about how to initiate the process (see Quote 3), and informant 4 stated that he had no intention of applying due to confusion (see Quote 4). This reflects a knowledge gap and procedural barrier that affects broader adoption.

This diversity in knowledge and attitudes suggests the need for targeted education and institutional support to facilitate access to certification among MSMEs. Observations["Quote", "Sertifikasi halal itu tanda bukti bahwa produk saya ini sudah sesuai dengan standar halal. Bahan baku saya sudah dipastikan kehalalannya kok, karena saya juga tidak menggunakan bahan-bahan yang terlarang.", "Quote 1 – Informant 1", "8pt", "2"] ["Quote", "Memastikan kehalalan suatu produk itu dilihat dari UMKM itu mempunyai sertifikat nggak, bahan baku yang digunakan tidak menggunakan bahan pengawet atau bahan yang dilarang, proses produksinya sesuai dengan syariat Islam, memiliki label pada kemasannya, mendapatkan arahan dari orang yang paham tentang standar kehalalan suatu produk.", "Quote 2 – Informant 2", "8pt", "2"] ["Quote", "Saya belum buat sertifikat halal karena saya bingung gimana cara buatnya.", "Quote 3 – Informant 3", "8pt", "2"] ["Quote", "Ya kalau jujur-jujuran sebenarnya saya belum membuat sertifikat halal dan juga tidak ada niatan untuk membuatnya, karena saya bingung.", "Quote 4 – Informant 4", "8pt", "2"] ["Quote", "NIB atau Nomor Izin Usaha, nama dan jenis produk, melampirkan bahan-bahan yang digunakan maupun bahan tambahan, dilihat proses pengelolaan produknya. Iya menggunakan sampel produknya karena buat tanda bukti. [Prosesnya] lama karena harus mendapatkan nomor induk berusaha (NIB), setelah itu baru mengantar berkas ke Kementerian Agama. Itu nggak langsung dapat sertifikatnya, harus nunggu satu bulan, dan ada yang sampai tiga bulanan.", "Quote 5 – Mrs. Sitti Nurjannah, a Halal Certification Facilitator", "8pt", "2"]during fieldwork confirmed that many entrepreneurs struggle with procedural clarity, in accordance with previous studies (21, 22). The majority of these studies frame halal certification primarily as a matter of regulatory compliance or marketing strategy, often overlooking how MSMEs acquire the knowledge and understanding necessary to navigate the certification process effectively. According to Mrs. Sitti Nurjannah, a halal certification facilitator, one common challenge is the documentation and wait time required, particularly for obtaining a Business Identification Number (NIB), which is a prerequisite for application (see Quote 5).

Comprehension of Halal Certification

Halal certification plays a crucial role in the business strategies of enterprises serving Muslim consumers who prioritize the halal integrity of their products. Beyond regulatory compliance, a strong understanding of halal certification helps strengthen consumer trust and brand credibility (23-25).

Among all participants, most business operators demonstrated adequate knowledge of halal-related concepts, including halal product standards, halal assurance principles, and the functions of the Halal Product Assurance Organizing Agency (BPJPH). They were also aware of halal["Table", "Table 1. Halal certification status of business operators in Iringmulyo (certified and non-certified, n = 10).", "8pt", "2", "false"]considerations for imported goods. This level of awareness was evident in the interviews conducted during fieldwork. For example, informant 1 viewed halal certification as a formal indicator that her products meet the required standards (see Quote 6). Similarly, informant 5 described halal assurance as a government-mandated system designed to ensure public access to certified products (see Quote 7).

These responses indicate that MSME actors in the region not only recognize the procedural aspects of certification but also understand its institutional and religious significance. Their views align with existing studies that emphasize awareness as a key enabler in halal compliance and market access (26).

Obligations in Ensuring Product Halal Compliance

Ensuring product halalness is a core responsibility of business operators serving Muslim consumers, requiring full compliance with Islamic Sharia principles. These principles include the use of halal-certified raw materials from the outset, halal-compliant extraction and processing methods that avoid contamination, storage practices that protect product integrity, distribution systems that prevent cross-contamination, and final product presentation that meets halal standards.

Business operators in Iringmulyo Subdistrict have begun implementing production processes aligned with these requirements (see Table 1). Five MSMEs held halal certificates, while the remaining five had not initiated or completed the process. Many businesses have adopted strict controls on raw materials and processing hygiene, and several have successfully obtained halal certification, demonstrating their alignment with both regulatory and religious expectations. For some entrepreneurs, halal compliance is not just a legal obligation but a reflection of personal faith. Informant 3, a siomay and batagor vendor, emphasized this religious motivation (see Quote 8).

Structured interventions by local authorities have contributed to the rise in halal awareness within the community. These include outreach programs, training, and technical assistance designed to equip business actors with the knowledge necessary to meet halal standards. The collaboration between government institutions and the community has positioned Iringmulyo as a local model for effective halal assurance implementation, with broader impacts on both social welfare and economic sustainability.

This success is echoed by key stakeholders. Mr. Arqom from the Ministry of Religious Affairs highlighted the["Quote", "Sertifikasi halal itu tanda bukti bahwa produk saya ini sudah sesuai dengan standar halal.", "Quote 6 – Informant 1", "8pt", "2"] ["Quote", "Jaminan produk halal yang saya tahu itu adalah sebuah aturan pemerintah yang memastikan bahwa produk-produk yang beredar di masyarakat memenuhi standar halal.", "Quote 7 – Informant 5", "8pt", "2"] ["Quote", "Iya, saya memiliki kewajiban dalam agama untuk memastikan produk saya halal karena saya juga beragama Islam.", "Quote 8 – Informant 3", "8pt", "2"] ["Quote", "Pelaku UMKM diwajibkan untuk segera mendaftarkan produknya agar bersertifikasi halal. Pada saat ingin pengajuan pembuatan sertifikasi halal bisa melalui orang yang paham alur pendaftaran sertifikasi halal.", "Quote 9 – Mr. Arqom from the Ministry of Religious Affairs", "8pt", "2"] ["Quote", "Saya mendukung peraturan pemerintah yang ada saat ini, karena menurut saya sertifikasi halal memberikan jaminan kualitas produk yang beredar. Sertifikasi halal juga dapat membantu UMKM untuk memperjualbelikan produknya secara luas.", "Quote 10 – Ms. Yulina Sari, Head of Iringmulyo Subdistrict", "8pt", "2"] ["Quote", "Saya mendukung peraturan pemerintah yang ada saat ini, karena menurut saya sertifikasi halal memberikan keamanan bagi konsumen yang beragama Islam. Sertifikasi halal juga dapat membantu UMKM untuk memperjualbelikan produknya secara luas dan membangun kepercayaan konsumen terhadap produk yang ada.", "Quote 11 – Ms. Nurjannah, a Halal Certification Facilitator", "8pt", "2"]requirement for MSME operators to initiate certification with proper guidance (see Quote 9). Local administrative leaders also support this initiative. Ms. Yulina Sari, Head of Iringmulyo Subdistrict, emphasized the role of certification in improving product quality and expanding market reach (see Quote 10). Similarly, Ms. Nurjannah, a halal facilitator, highlighted the value of certification in ensuring consumer safety and building trust (see Quote 11).

While these key informants referenced regulatory frameworks, their observations were also grounded in local experience. For instance, Ms. Yulina Sari noted a rise in MSME interest in certification following community outreach programs, and Ms. Nurjannah reported a backlog of applications at the KUA due to increased demand, indicating the policy is actively reshaping local business behavior. These accounts suggest that regulation is not only symbolic but has also begun to influence real shifts in practice within Iringmulyo’s MSME ecosystem.

Halal certification plays a strategic role in influencing consumer purchasing decisions, particularly among populations that are highly sensitive to halal compliance. Observational data indicate that business operators holding halal certificates report superior financial performance. Monthly revenues for certified enterprises range from IDR 10,000,000 to IDR 15,000,000, whereas non-certified operators exhibit lower figures, between IDR 4,500,000 and IDR 6,000,000.

These findings suggest that halal certification enhances product credibility, facilitates market expansion, and strengthens competitive advantage. Beyond serving the needs of Muslim consumers, halal certification is also perceived positively by segments of non-Muslim consumers who associate halal products with higher standards of hygiene, safety, and ethical production (27, 28). Thus, halal certification can be identified as a critical instrument for business growth and market sustainability, especially within the Indonesian domestic context.

Based on the collected interview data, it can be concluded that halal certification serves not only as a consumer assurance mechanism but also significantly contributes to business revenue enhancement. Enterprises possessing halal certification consistently demonstrate higher turnover performance, indicating that such certification represents a strategic investment with potential to support business sustainability and future growth.

Analysis of Halal Awareness Among MSME Actors Regarding Halal Certification

The study conducted in Kelurahan Iringmulyo reveals an increased level of awareness among business actors regarding the importance of halal certification. Within the evolving business context, operators now perceive halal certification not merely as an administrative formality but as a critical strategic measure to expand market share and address the growing consumer demand for halal-compliant products. Examples of MSME products are shown in Figure 1.

Several business operators in Iringmulyo Subdistrict have successfully obtained halal certification, demonstrating their compliance with prevailing halal regulations and standards. This certification serves as an indicator that both their products and production processes conform to the Islamic principles as established by authorized institutions. The certified business operators 5 informants. Their success in obtaining halal certification reflects a strong commitment to providing products that are safe, suitable for consumption, and aligned with religious values.

On the other hand, several business operators are still in the process of applying for halal certification or have yet to initiate the procedure. These include 5 informants. It is expected that these business actors will promptly initiate the halal certification process as part of their responsibility to consumers and to enhance the competitiveness of their products in a market that increasingly prioritizes halal assurance. The encouragement to pursue halal certification aligns with the growing public awareness of the importance of consuming products that adhere to halal principles. This trend also signifies a shift in consumer preferences, with increasing demand for transparency and quality assurance in the products they choose to consume.

In Iringmulyo Subdistrict, halal certification is recognized as a formal mechanism for reinforcing consumer trust by ensuring adherence to established halal standards. Products certified through this program are perceived not only as hygienic but also as compliant with official regulatory["Figure", "https://etflin.com/file/figure/202506290512301805370725.png", "Figure 1. Examples of MSME products in Iringmulyo. Note: (A and B) the process of making and packing Kue Legit, (C and D) the process of making and packaging fruit-filled cream puffs (Kue Soes Buah), and (E and F) the process of making and packaging catering meals.", "", "100%", "1"] ["Quote", "Iya, saya memiliki kewajiban dalam agama untuk memastikan produk saya halal karena saya juga beragama Islam.", "Quote 12 – Informant 3", "8pt", "2"] ["Quote", "Iya, memiliki dukungan dari pemerintah, bukan cuma saya, tetapi semua UMKM yang sudah memiliki sertifikat.", "Quote 13 – Informant 1", "8pt", "2"] ["Quote", "Sertifikasi halal juga dapat membantu UMKM untuk memperjualbelikan produknya secara luas dan membangun kepercayaan konsumen terhadap produk yang ada.", "Quote 14 – Informant 5", "8pt", "2"] ["Quote", "Sertifikasi halal adalah bukti bahwa produk saya ini sudah sesuai dengan standar halal.", "Quote 15 – Informant 6", "8pt", "2"]frameworks, thereby enhancing market confidence, particularly among consumers with explicit halal preferences. Furthermore, possessing halal certification offers an opportunity to access broader market segments, especially within the Muslim demographic, where halal assurance constitutes a key purchasing consideration. Therefore, halal certification serves as a strategic instrument for increasing competitiveness within the micro and small enterprise sector.

Halal Awareness and Religious Obligations

Findings from Iringmulyo also reveal a strong sense of responsibility among business operators to ensure that their products comply with halal standards. This commitment reflects both religious obligations and a strategic response to increasing consumer demand for products that adhere to Islamic principles. Business practices consistently incorporate halal-certified raw materials, adhere to strict hygiene and processing protocols, and implement contamination prevention procedures in line with Sharia requirements. This perspective was confirmed by informant 3, a food vendor, who emphasized that halal compliance is a personal religious obligation (see Quote 12).

These findings suggest that MSMEs in Iringmulyo are motivated not just by profit but by ethical and religious values that resonate with their consumer base. This widespread awareness has been reinforced by consistent support from the local government. Structured interventions, such as training sessions, outreach programs, and technical assistance, have enabled business owners to better understand and implement halal standards. According to informant 1, this institutional backing has been critical to MSME progress in certification efforts (see Quote 13).

The implementation of halal certification has also contributed to economic development. Certified products benefit from enhanced consumer trust and expanded market reach. As informant 5 said, a seller of empek-empek and traditional cakes, observed, halal certification helps businesses grow and strengthens buyer confidence (see Quote 14).

This synergy between the government and community has transformed Kelurahan Iringmulyo into a model for implementing halal assurance. The collaboration not only benefits local welfare but also supports sustainable economic competitiveness.Overall, this study highlights how policy support and grassroots participation work together to promote halal compliance. Regulatory frameworks, educational programs, and facilitation efforts play a key role in helping MSMEs meet the standards established in Indonesian Law Number 33 of 2014 on Halal Product Assurance. These include requirements for halal-certified inputs, production processes, certification procedures, and the responsibilities of business actors in maintaining compliance.

Hygiene and Food Safety

Research findings indicate that business actors place strong emphasis on the halal integrity of raw materials and the implementation of production processes that comply with halal standards. These aspects, including ingredient sourcing and hygienic handling, are considered essential for securing halal certification. This focus was clearly expressed by one MSME operator, who highlighted the relationship between certification and production discipline (see Quote 15).

While several businesses have successfully obtained certification, the study identified notable challenges, especially among first-time applicants. One recurring issue is the complexity of the certification procedure, which involves submitting a Business Identification Number (BIN), detailed product and ingredient information, and undergoing evaluations of the production process. The waiting period for certification, typically ranging from one to three months, further adds to the operational burden.

These barriers stem primarily from limited understanding and a lack of accessible guidance. As a result, the role of government agencies in providing structured outreach, education, and technical support is critical. Such efforts are particularly important for newcomers unfamiliar with certification protocols.

Despite ongoing progress in Iringmulyo’s halal certification efforts, significant gaps in procedural comprehension remain. Sustained government involvement through training and technical assistance will be crucial in helping MSME actors meet the expectations of increasingly halal-conscious consumers.

Knowledge of Food Processing

The halal certification process verifies that food products comply with Islamic Sharia law requirements, specifically regarding cleanliness, the use of halal raw materials, and processing procedures. Comprehensive knowledge of the food production process constitutes a critical aspect of halal certification indicators, encompassing all stages from raw material selection to final product distribution. Processing methods must adhere to halal principles, including the use of clean and contamination-free equipment. In large-scale industries, producers are required to ensure that machinery is not used for processing prohibited products without undergoing proper cleaning procedures (taharah). This requirement also extends to storage and distribution processes, where halal products must be protected from mixing or contamination with non-halal products during transit.

Halal certification also covers packaging practices, requiring the use of materials that are safe and free from prohibited elements. Knowledge of product presentation procedures up to the end consumer is crucial to guarantee that the halal integrity of the product is maintained throughout the supply chain. Therefore, a comprehensive understanding of the entire production chain, from raw materials and processing to distribution, constitutes a primary indicator for halal certification, ensuring compliance with Islamic Sharia regulations.

Study Limitation

Limitations of this study include the small, purposively selected sample, which limits generalizability. The absence of official MSME demographic data for Iringmulyo also restricts broader contextual analysis.

Based on the findings, we recommend:

1. The development of localized training programs on halal certification.
2. Strengthened partnerships between government agencies and MSME networks.
3. Simplified digital tools for application and tracking of halal certification.

Addressing these issues will not only improve certification uptake among MSMEs but also contribute to building a more competitive and ethically aligned halal economy at the grassroots level.

Conclusion

This study explored the awareness and understanding of halal certification among MSME actors in Kelurahan Iringmulyo, East Metro. The findings show that while several business operators exhibit a high level of awareness, recognizing halal certification as both a religious responsibility and a business strategy, others remain unclear about procedures due to limited guidance and administrative challenges. These gaps reflect the broader phenomenon of uneven halal literacy and low uptake of certification, despite national mandates. The results also confirm that awareness is not solely determined by religious motivation but also shaped by access to information, institutional support, and technical assistance. This highlights the need for structured educational outreach and simplified certification mechanisms tailored to micro and small enterprises.