Improving MSMEs Standards Through Digitization of Halal Obligation Policies and Licensing Legality in Madura Island

Abstract

This study was conducted with the aim of outlining the impact of halal certification of MSE actors through the digitization of licensing and the process of implementing halal certification. The halal principle applied to the business sector was originally voluntary, but it became mandatory to be halal for all goods in circulation. Through the halal certification mechanism, there have been various dynamics of standard improvement, especially in MSEs through the fulfillment of formal licensing. Business actors who apply for halal certification are required to first carry out business licensing through OSS with NIB ownership. So if this halal licensing and certification process can be carried out in tandem and continuously and sustainably, it will be able to increase the transformation of MSEs to the formal sector. The method used with a descriptive approach uses primary data with improvements in standards and procedures experienced by MSEs that have carried out the halal certification process. Result of this study that implementation of halal certification carried out by MSE actors has an impact on improving MSE standards starting from the administrative side to the application of raw material standards, processes, product feasibility to consumer protection aspects. Thus, the gradual and sustainable implementation of halal certification obligations accompanied by proper supervision will be able to increase competitiveness and achieve standards for MSE actors.