Unlocking barriers and strategies of halal certification for micro and small enterprises in Indonesia: Analytic network process approach
This study aims to identify and prioritize the barriers and strategies to improve halal certification accessibility for micro and small enterprises (MSEs) in Indonesia. The paper utilized the analytic network process (ANP) to model interrelationships among barriers and strategies. Data were collecte...
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LLC "CPC "Business Perspectives"
2025-01-01
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| Series: | Problems and Perspectives in Management |
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| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21481/PPM_2025_01_Fathoni.pdf |
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| author | Muhammad Anwar Fathoni Prima Dwi Priyatno Faizi Fadhli Suko Wiryanto Widarto Rachbini Suryani |
| author_facet | Muhammad Anwar Fathoni Prima Dwi Priyatno Faizi Fadhli Suko Wiryanto Widarto Rachbini Suryani |
| author_sort | Muhammad Anwar Fathoni |
| collection | DOAJ |
| description | This study aims to identify and prioritize the barriers and strategies to improve halal certification accessibility for micro and small enterprises (MSEs) in Indonesia. The paper utilized the analytic network process (ANP) to model interrelationships among barriers and strategies. Data were collected through structured interviews and surveys involving representatives from halal certification bodies (e.g., BPJPH), government agencies (e.g., DKUM Depok), and experts from academia specializing in halal certification and MSE development. The findings highlight three major barriers: financial constraints, regulatory complexities, and limited awareness among MSE owners. Financial constraints include high certification fees and costs associated with compliance. Regulatory complexities stem from the intricate procedures and bureaucratic inefficiencies in the certification process, which deter small businesses from participating. Additionally, limited awareness and understanding of halal certification’s importance and procedures exacerbate the problem, particularly among MSEs in rural or underdeveloped regions. Financial support, regulatory reforms, and educational programs emerged as the most critical strategies for overcoming these barriers. Specifically, reducing certification fees and simplifying regulatory procedures were deemed essential to increase the uptake of halal certification among MSEs. By integrating actionable insights, this study provides a roadmap for policymakers to foster a supportive ecosystem for MSEs in the halal economy. The recommendations emphasize a balanced approach that combines financial assistance, regulatory reforms, and educational initiatives to address the multifaceted barriers. This analysis contributes to the broader discourse on enhancing MSE participation in the halal market, offering implications for both local and international stakeholders seeking to optimize the halal certification process.
Acknowledgment The authors would like to express their sincere gratitude to the Ministry of Education, Culture, Research, and Technology of the Republic of Indonesia (Kemendikbudristek RI) for providing financial support for this investigation. This study would not have been possible without their generous funding and commitment to advancing research in Indonesia. We also extend our appreciation to all the respondents and participants who contributed valuable insights and data for this study, as well as to the institutions involved for their support and collaboration. |
| format | Article |
| id | doaj-art-70237f8bf1d14de987119a302a3d4819 |
| institution | Kabale University |
| issn | 1727-7051 1810-5467 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Problems and Perspectives in Management |
| spelling | doaj-art-70237f8bf1d14de987119a302a3d48192025-01-27T13:18:52ZengLLC "CPC "Business Perspectives"Problems and Perspectives in Management1727-70511810-54672025-01-0123116918010.21511/ppm.23(1).2025.1321481Unlocking barriers and strategies of halal certification for micro and small enterprises in Indonesia: Analytic network process approachMuhammad Anwar Fathoni0https://orcid.org/0000-0002-7056-4229Prima Dwi Priyatno1https://orcid.org/0000-0001-9840-0317Faizi2https://orcid.org/0000-0001-6190-8918Fadhli Suko Wiryanto3https://orcid.org/0000-0002-1159-4831Widarto Rachbini4https://orcid.org/0000-0003-3702-5116Suryani5https://orcid.org/0000-0001-8857-5359Doctor in Islamic Economics, Vice Dean for Academic Affairs, Department of Islamic Economics, Faculty of Economics and Business, University of Pembangunan Nasional Veteran Jakarta, IndonesiaMaster in Islamic Economics, Department of Islamic Economics, Faculty of Economics and Business, University of Pembangunan Nasional Veteran Jakarta, IndonesiaDoctor in Islamic Economics, Department of Islamic Economics, Faculty of Economics and Business, University of Pembangunan Nasional Veteran Jakarta, IndonesiaMaster in Islamic Economics, Department of Islamic Economics, Faculty of Economics and Business, University of Pembangunan Nasional Veteran Jakarta, IndonesiaDr., Associate Professor, Faculty of Economics and Business, Graduate School, Universitas Pancasila [Pancasila University], IndonesiaDoctor in Islamic Economics, Department of Islamic Economics, Faculty of Islamic Economics and Business, Sultan Maulana Hasanuddin State Islamic University of Banten, IndonesiaThis study aims to identify and prioritize the barriers and strategies to improve halal certification accessibility for micro and small enterprises (MSEs) in Indonesia. The paper utilized the analytic network process (ANP) to model interrelationships among barriers and strategies. Data were collected through structured interviews and surveys involving representatives from halal certification bodies (e.g., BPJPH), government agencies (e.g., DKUM Depok), and experts from academia specializing in halal certification and MSE development. The findings highlight three major barriers: financial constraints, regulatory complexities, and limited awareness among MSE owners. Financial constraints include high certification fees and costs associated with compliance. Regulatory complexities stem from the intricate procedures and bureaucratic inefficiencies in the certification process, which deter small businesses from participating. Additionally, limited awareness and understanding of halal certification’s importance and procedures exacerbate the problem, particularly among MSEs in rural or underdeveloped regions. Financial support, regulatory reforms, and educational programs emerged as the most critical strategies for overcoming these barriers. Specifically, reducing certification fees and simplifying regulatory procedures were deemed essential to increase the uptake of halal certification among MSEs. By integrating actionable insights, this study provides a roadmap for policymakers to foster a supportive ecosystem for MSEs in the halal economy. The recommendations emphasize a balanced approach that combines financial assistance, regulatory reforms, and educational initiatives to address the multifaceted barriers. This analysis contributes to the broader discourse on enhancing MSE participation in the halal market, offering implications for both local and international stakeholders seeking to optimize the halal certification process. Acknowledgment The authors would like to express their sincere gratitude to the Ministry of Education, Culture, Research, and Technology of the Republic of Indonesia (Kemendikbudristek RI) for providing financial support for this investigation. This study would not have been possible without their generous funding and commitment to advancing research in Indonesia. We also extend our appreciation to all the respondents and participants who contributed valuable insights and data for this study, as well as to the institutions involved for their support and collaboration.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21481/PPM_2025_01_Fathoni.pdfbarrierscertificationfinancial supportsmarket accessmicroenterprisesregulation |
| spellingShingle | Muhammad Anwar Fathoni Prima Dwi Priyatno Faizi Fadhli Suko Wiryanto Widarto Rachbini Suryani Unlocking barriers and strategies of halal certification for micro and small enterprises in Indonesia: Analytic network process approach Problems and Perspectives in Management barriers certification financial supports market access microenterprises regulation |
| title | Unlocking barriers and strategies of halal certification for micro and small enterprises in Indonesia: Analytic network process approach |
| title_full | Unlocking barriers and strategies of halal certification for micro and small enterprises in Indonesia: Analytic network process approach |
| title_fullStr | Unlocking barriers and strategies of halal certification for micro and small enterprises in Indonesia: Analytic network process approach |
| title_full_unstemmed | Unlocking barriers and strategies of halal certification for micro and small enterprises in Indonesia: Analytic network process approach |
| title_short | Unlocking barriers and strategies of halal certification for micro and small enterprises in Indonesia: Analytic network process approach |
| title_sort | unlocking barriers and strategies of halal certification for micro and small enterprises in indonesia analytic network process approach |
| topic | barriers certification financial supports market access microenterprises regulation |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/21481/PPM_2025_01_Fathoni.pdf |
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