The Social Trends of Indonesian Micro, Small and Medium Enterprises (MSME): Public Trust, Halal Fatwas, and Practical Implication

The Indonesian economy is significantly driven by Micro, Small, and Medium Enterprises (MSMEs), which face challenges related to halal certification. The Indonesian Ulema Council (MUI) plays a crucial role in providing halal fatwas through a self-declaration mechanism for MSMEs. This study explores the challenges MSMEs encounter in obtaining halal fatwas and their impact on consumer purchase decisions. From a self-declaration perspective, the MUI validates and issues halal fatwas for MSME products. Although self-declaration aims to ease the certification process, challenges such as high costs and difficulty meeting standards persist. However, the MUI's role in providing credible halal fatwas and maintaining public trust is vital. This research uses a library study method, analyzing data from primary legal materials, relevant literature, survey results, and other information. The findings indicate that self-declared halal fatwas can enhance consumer trust in MSME products, though concerns about the validity of such certifications remain due to the lack of audits and formal fatwa determinations.

Authors

Publication Details

Journal
JURNAL INDO-ISLAMIKA
Published
2024-12-31
DOI
https://doi.org/10.15408/jii.v14i2.43763
Primary Topic
Halal products and consumer behavior
Type
article
Field-Weighted Citation Impact
0.00
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article

The Social Trends of Indonesian Micro, Small and Medium Enterprises (MSME): Public Trust, Halal Fatwas, and Practical Implication

Muhammad Hidayat, Muhammad Rais, Abdillah Abdillah, Bader Fahad A Bin Jadid
JURNAL INDO-ISLAMIKA
Halal products and consumer behavior
article

The Social Trends of Indonesian Micro, Small and Medium Enterprises (MSME): Public Trust, Halal Fatwas, and Practical Implication

Muhammad Hidayat, Muhammad Rais, Abdillah Abdillah, Bader Fahad A Bin Jadid
article en

Abstract

The Indonesian economy is significantly driven by Micro, Small, and Medium Enterprises (MSMEs), which face challenges related to halal certification. The Indonesian Ulema Council (MUI) plays a crucial role in providing halal fatwas through a self-declaration mechanism for MSMEs. This study explores the challenges MSMEs encounter in obtaining halal fatwas and their impact on consumer purchase decisions. From a self-declaration perspective, the MUI validates and issues halal fatwas for MSME products. Although self-declaration aims to ease the certification process, challenges such as high costs and difficulty meeting standards persist. However, the MUI's role in providing credible halal fatwas and maintaining public trust is vital. This research uses a library study method, analyzing data from primary legal materials, relevant literature, survey results, and other information. The findings indicate that self-declared halal fatwas can enhance consumer trust in MSME products, though concerns about the validity of such certifications remain due to the lack of audits and formal fatwa determinations.

JURNAL INDO-ISLAMIKAVol. 14(2)
Openalex Percentile: Top 52%
Halal products and consumer behavior
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