Evolving Halal Certification Regulations and Indonesia'S Competitive Position in the Global Halal Market: Challenges and Opportunities for Market Access
DOI:
https://doi.org/10.38035/gijea.v3i3.613Keywords:
Halal certification, Global halal market, Indonesia competitiveness, Market access, MSME developmentAbstract
Halal certification plays a crucial role in enhancing economic competitiveness for
countries with substantial Muslim populations, and Indonesia is making significant efforts to
strengthen its standing in the rapidly expanding global halal market. This study explores
recent policy reforms within Indonesia's halal certification framework and examines their
implications for the country's competitiveness and access to international markets. Through a
qualitative analysis of regulatory updates, government policy initiatives, and industry data, the research assesses changes in certification procedures, implementation strategies, and
sectoral developments influencing market access. The findings highlight that recent
government policy reforms have markedly streamlined certification processes, expanded
opportunities for Micro, Small, and Medium Enterprises (MSMEs), and reduced barriers
through initiatives like the SEHATI program, which provides free certification for select non- critical product categories. These efforts have improved operational efficiency, encouraged
broader MSME participation, and facilitated Indonesia's growth into halal sectors beyond
food, including pharmaceuticals and cosmetics. Evidence of export growth and an enhanced
international presence further reflect these positive developments in market access. Nonetheless, challenges remain in fully aligning Indonesia's certification system with
international halal standards, managing certification costs, and boosting competitiveness in
emerging halal industries. Continued refinement of regulations, deeper harmonization with
global standards, and strengthened institutional support for MSMEs are essential for
Indonesia to seize new opportunities within the global halal economy and sustain its
leadership role.
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