The Shifting of Halal Certification System in Indonesia: From Society-Centric To State-Centric

Abstract

The aim of this paper is to describe the shifting of halal certification system in Indonesia, which previously tended to be society-centric towards state-centric. The needs of domestic consumers for a legally strong halal assurance system and the spread of global halal trend encourage the birth of Law Number 33 of 2014. The law makes halal certification compulsory rather than voluntary, in which the control conducted by the arrangements of LPPOM MUI is shifted to the superintendence of the Ministry of Religion through Badan Penyelenggara Jaminan Produk Halal (BPJPH)/ Halal Product Guarantee Agency. This research uses a qualitative method, in which the data gathered from semi-structured interviews and studies of literature. The research result shows that the system of state-centric halal certification has more benefits than that of the society-centric system that was previously applied in Indonesia. However, it could not be proven yet since the new system has not been implemented and the supporting infrastructures have not actually been ready to operate.

Divergent Interpretations and Inter-Organizational Relations of Halal Product Guarantee Policy in Indonesia

“…There were studies concerning the development of halal regulations (Akim et al, 2019;Asa, 2019), its implementation (Anwar, Fahrullah, & Ridlwan, 2018;Nafis, 2019;Othman, Shaarani, & Bahron, 2016;Zulkifli & Mochammad Sahid, 2018), and its organizations (Afroniyati, 2014;Faidah, 2017), as well as problems in certification (Prabowo, Rahman, Rahman, & Samah, 2015;Viverita & Kusumastuti, 2017). Except Afroniyati and Faidah's study, the studies have not revealed the inter-organizational relations after the enactment of the Act No.…”

“…Although searching for meaning is a subjective problem, seeing what is written and what is implied is interesting in the study of language, especially if it is related to the expression of the meaning of policy regulation. Many studies on halal policy in Indonesia have been carried out (Afroniyati, 2014;Akim, Konety, Purnama, & Korina, 2019;Asa, 2019), but there are still gaps in knowledge about the interpretation of policies issued and their implications for relations between organizations related to these policies. Linking to institutional theory, the current issues for institutional theorists are about institutional complexity and contradiction, as well as organizational responses to institutional pressures (Greenwood, Díaz, Li, & Lorente, 2010;Greenwood, Raynard, Kodeih, Micelotta, & Lounsbury, 2011;Pache & Santos, 2010;Reay & Hinings, 2009;Thomann, Lieberherr, & Ingold, 2016).…”

Mapping Out Halal Certification in Indonesia and Malaysia: Challenges, Opportunities, and Comparative Advantage

“…In Indonesia, the history of halal certification has taken a relatively linear route, consisting of two major phases, namely before and after the promulgation of Law No 33 of 2014 about Halal Product Assurance (UUJPH, Undang-Undang Jaminan Produk Halal) [17]. Before UUPJH came into existence, MUI was the sole institution responsible for halal certification in Indonesia [9].…”

“…After the advent of UUPJH, halal certification in Indonesia became mandatory. In fact, when it is fully implemented, Indonesia would be the first country in the world to require halal certification for every product in its market [17].…”

“…While initially it was planned that by October 17, 2019, UUJPH would be fully implemented but, due to lacking some supporting legislation and infrastructure, BPJPH has yet to wait longer before it could finally operate as expected. In the meantime, the halal certification process In Indonesia is de facto run by MUI, during this transitional period [17]. Overall, the registration steps are the same as before the promulgation of UUJPH, with one notable addition, in that the applicant must, at the same time, send the application to both BPJPH and LPPOM MUI.…”