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Readiness of micro, small, and medium enterprises (MSMEs) in the food and beverage sector for halal certification implementation A case study in Magelang, Indonesia
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December 26, 2024
Accepted
December 31, 2024
Published
December 31, 2024
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Abstract

Introduction
Halal certification is increasingly critical for Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, especially in the food and beverage sector. Despite its mandatory status under Halal Product Assurance Law, many MSMEs face challenges in achieving compliance due to limited knowledge, inadequate service support, and operational constraints.
Objectives
This study investigates the readiness of MSMEs in Magelang to implement halal certification. It analyzes the influence of knowledge, service quality, halal awareness, production processes, and human resource capabilities on MSME readiness while identifying the most significant factors affecting compliance.
Method
The research employs a quantitative cross-sectional approach, surveying 110 MSME operators in Magelang. Data were collected using structured questionnaires and analyzed using descriptive statistics, classical assumption tests, and multiple linear regression analysis.
Results
The findings reveal that knowledge, service quality, and halal awareness significantly influence MSME readiness for halal certification, with knowledge being the most dominant factor. Human resource capabilities also positively impact readiness, while production processes were found to be insignificant. The model explains 74% of the variance in readiness, emphasizing the importance of integrating these factors.
Implications
The study highlights the need for targeted educational initiatives, streamlined certification processes, and enhanced institutional support to improve MSME compliance. It provides actionable insights for policymakers, certification bodies, and MSME operators to foster a robust halal certification ecosystem.
Originality/Novelty
This research contributes to the understanding of halal certification readiness by offering a multidimensional analysis of critical factors, addressing gaps in existing literature, and proposing practical interventions to enhance MSME participation in the halal market.

Keywords

Halal awareness Halal certification institutional support knowledge impact MSMEs

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Copyright (c) 2024 Akbar Dwikiwibowo Tuhuteru, Muhammad Iqbal

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How to Cite
Tuhuteru, A. D. ., & Iqbal, M. . (2024). Readiness of micro, small, and medium enterprises (MSMEs) in the food and beverage sector for halal certification implementation: A case study in Magelang, Indonesia. Journal of Islamic Economics Lariba, 10(2), 1091–1114. https://doi.org/10.20885/jielariba.vol10.iss2.art24
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