Strategy to increase the number of halal self declared certification in Indonesia

Abstract

Self-declared halal certification is a type of certification intended to simplify the halal certification process for Micro and Small Enterprises (MSEs). However, in reality, the number of self-declared halal certifications in Indonesia is still not maximizing its optimal potential. Out of the available quota of 349,834 free halal Self-declared certifications from governments, only 119,662 quotas have been used (BPJPH 2022). In fact, there are more than 64 million MSEs in Indonesia that are still not halal certified. Even though self-declared halal certification has advantages form MSEs over other types of halal certification, there are still several problems in implementation in the field which are reflected in the low number from MSEs that are halal certified. Therefore, a strategy is needed to answer this problem. The purpose of this research is to identify the SWOT analysis related to self-declared halal certification and to formulate a strategy to increase its usage from stakeholder perspective. SWOT method is used to applied the strengths, weaknesses, opportunities, and threats and the possible development strategies of self-declared stakeholder namely the Indonesian Ulema Council (MUI), PPH Assistance and Halal Product Guarantee Organizer (BPJPH) The ANP method prioritizes these four aspects and the best strategy in developing halal self-declared policy. An aggressive strategy is needed through equitable information dissemination and optimizing the support of PPH assistants to address the challenge of the low number of self-declared halal certifications. From this research we recommend the Government to provides a reasonable honorarium for PPH assistants. BPJPH can enhance governance and expedite the development of AI and blockchain technologies to facilitate UMK and PPH assistants in the document collection process. In addition, PPH assistants can adopt more proactive and creative approaches in their assistance.

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