In the context of food, what is meant by "halal" is a product that is made hygienically using halal ingredients, follows sharia procedures and is safe to consume [1]. To protect consumers, a halal product certification system is implemented for business actors. Moreover, by applying this approach, Muslim clients have a choice and obtain adequate information about the goods they are purchasing [2]. Certification is one of the efforts to maintain the trust of goods or services. [1]. Evaluation and certification procedures for halal production and service facilities examine all aspects of the production system and related activities in addition to product ingredients. In addition to adhering to halal, Toyyib's ideas are also crucial. Sanitation, hygiene, moral behavior, and safety are important components in the evaluation and accreditation process, which makes halal certification have various benefits [1]. In 2022, the number of Muslims in Indonesia reached 241.7 million people, which is 87% of the country's total population of 273.52 million people. With such a large Muslim population, it is estimated that by 2025, the cost of purchasing halal goods and services will reach $281.6 billion. The government decided that Indonesia must lead the global halal market because of its huge potential [3]. The government has implemented several measures to take advantage of this opportunity and achieve this goal. One way is to help domestic companies obtain halal certification faster [4]. The Halal Product Assurance Agency (BPJPH) of the Ministry of Religion as a major player in the halal industry is targeting 10 million halal-certified products by 2024. This target makes Indonesia the first halal food and beverage producer in the world [4]. The first phase of the halal certificate obligation ends on October 17, 2024. There are three groups of products that need to receive Halal certification at the end of the first stage, referring to Article 33 of 2014 and its derivatives. First, food and drinks. Second, raw materials, food additives, and auxiliary raw materials for food and beverage products. Third, slaughter products and slaughter services [5]. Aqil Irham explained, that from 2019 to 2022, 864,014 goods had received halal certification. This means that so far, an average of around 300,000 halal certifications have been obtained every year [4]. With 209.1 million Muslims or about 13.1% of the global Muslim population, Indonesia is home to the largest number of Muslims [6]. With this number, the demand for halal goods will increase and become more difficult. In addition, there is an increase in global demand for halal goods every year, including food. Halal goods are now a significant and potentially valuable component of global trade, both among Muslim and non-Muslim populations. It is not only Islamic countries that focus on this, but also "secular" countries or Muslim minorities [7]. Based on various studies, consumers are increasingly aware of the halal food products they buy [8] and the requirement that all goods have a halal certificate has evolved in the halal business, especially for halal products, in recent years [9] The presence of this certificate is expected to increase the product's value and facilitate its marketing. The problem lies in the fact that certain industries and commercial organizations cannot implement halal assurance [10] many industry players still ignore the issue of halal certification [2]. Research shows that entrepreneurs are aware of halal food, but the product is not certified because it is difficult and expensive to get halal certification [11]. The importance of a thorough investigation into the issue of halal certification for MSME business actors to encourage the growth of MSMEs and meet the global halal market agenda, especially in Indonesia. This study examines the research map related to the issue of halal certification for MSME companies from the Scopus database for the last five years. Furthermore, this study examines the themes explored related to the challenges of halal certification for MSME business actors. Halal certification research is very important as the public becomes more aware of food quality and safety. Halal certification is important to protect religious beliefs and ensure halal and taib (good) food. Halal certification is not just about meeting market expectations. Halal certification is also about compliance with applicable laws and regulations. Halal product assurance in Indonesia aims to promote halal products, especially in the MSE sector. The reason is, that the MSE sector is one of the economic sectors that is growing and socially influential. Small businesses are essential for economic growth [12,13]. Micro, Small, and Medium Enterprises (MSMEs) are an important part of the economic growth of a nation. This can also be seen in the pattern of MSMEs, which make up the majority of business sectors in Indonesia. Furthermore, Indonesia's gross domestic product (GDP) is significantly contributed by the small, medium, and large business (MSME) sectors. This literature review will answer the knowledge gap by thoroughly examining the problem of halal certificates for MSME business actors over the previous five years. This research will provide significant insights for policymakers, practitioners, and researchers to design more effective ways to deal with the challenges of halal certificate rules for MSMEs by exploring issues that have previously been studied in the relevant literature.

Halal Certificate

Halal certification ensures that the Muslim community can consume a product safely Halal certification applies to more than just products for direct consumer use. However, it covers every step of the production process, including the equipment used and additional components added to the final product. People Muslims must consume certified halal food to fulfill their religious obligations. Interestingly, the concept of halal is now more established than before because it is widely accepted by both Muslims and non-Muslims. For Muslim countries like Indonesia, halal certification is a must and very important. The goal is to ensure the welfare of Muslims by consuming food that is known to be halal. Because halal has never contradicted Islamic values, halal is the most important thing for a Muslim. Consuming halal products can also be a form of worship because it will bring benefits and rewards. A halal product guarantee is a product that has been determined to be halal according to Sharia. Conversely, compliance with Halal legal requirements can be demonstrated by Halal certification or Halal assurance of a product. Halal certification means the approval of the halalness of a product issued by the Halal Product Assurance Agency, based on a written fatwa submitted by the Indonesian Ulema Council (MUI). The halal label indicates that the product is Halal. According to Article 2 paragraph (1) of Government Regulation Number 69 of 1999 concerning Food Labeling and Advertising, every person who produces or imports food packaging into Indonesia for commercial purposes is required to include a food label. The Decree of the Minister of Religion Number 519 of 2001 which regulates the Halal Food Supervision Institution can be used as a follow-up. In addition, Law Number 8 of 1999 concerning Consumer Protection states that one of the rights of consumers is to obtain comfort, security, and safety in using goods or services. Because not all products in the community are halal certified, the government issued Law Number 33 of 2014 concerning Halal Product Assurance. Halal is very important for Muslims because there is no guarantee that there will be no conflict.

Halal Product Assurance Agency

Three agencies oversee the issuance of halal certificates for all products, especially food, medicine, and cosmetics:

1. Halal Product Assurance Agency (Bpjph)

All halal-certified goods that were previously under the supervision of the Indonesian Ulema Council (MUI) are now under the control of BPJPH, a news agency under the Ministry of Religious Affairs. The appointment of BPJPH as a new agency under the Ministry of Religion as required in Law Number 33 of 2014 concerning Halal Product Assurance will bring significant improvements.

1. Halal Inspection Agency (Lph)

An institution called LPH inspects and/or tests products for halal standards. This institution can be established by the community or the government. This community is a recognized Islamic religious institution. LPPOM MUI. Operating as a semi-autonomous organization, LP POM MUI has specific tasks related to the safety of Muslim food from additives.

1. Halal-Based MSME Business Actors

The halal industry plays an important role in improving the economy. The halal sector is currently a big business that is increasingly popular both domestically and internationally. Entrepreneurs spend a lot of effort to learn what halal means to have a comprehensive awareness of the demands and preferences of Muslim consumers, especially young people. Halal-based MSMEs with halal products are guaranteed to be clean and accepted from a religious point of view, of course, [9]. Not only the population is Muslim, but there are also non-Muslim communities, such as Singapore which has a larger non-Muslim population. Singaporeans consider halal products to be guaranteed in terms of material sanitation and manufacturing methods [9].

This study uses a literature review approach. This approach uses the analysis of article content from the Scopus database. Identify the main topics discussed in the Scopus database in a certain period, and then conduct content analysis. The journals selected for this review were taken from searches conducted in the Scopus database with the keyword halal certificate during 2020–2024. The search process is carried out with the help of the Publish or Perish Application. In the first step, the author searched for articles in Scopus with the keyword halal certificate and found 83 that matched the search keyword. After going through the process of reading the title, abstract, and keywords of the paper that are still relevant, there are 9. Furthermore, in the final stage, the author obtained 9 papers that were published in journals and papers that were reviewed in this research.

Analyze the research map related to the challenges of halal certification for business actors in the last 5 years on the Scopus database.

Table 1: Paper search results by keyword.

In Table 1, there are 9 articles where the article is researched using qualitative and quantitative approaches. From the results of the analysis of the articles in Table 1, it is known that the articles are grouped as follows:

Quantitative Descriptive

Table 2: Paper Descriptions by Year of Publication.

Qualitative Descriptive

The first topic focuses on the internal problems of corporate actors, such as awareness and intention to apply for halal certification. The majority of MSE producers have a bad impression of halal certification mandated by the government. One reason is that many people believe that the procedure is difficult and relatively expensive. In addition, the lack of customer pressure on halal food to be purchased, as well as the limited level of education of food MSE producers, gives rise to the assumption that their business can run well without a halal certificate [11]. Moving on to the next topic, producers' understanding of foodstuffs. MSMEs do not understand the classification of critical and non-critical foodstuffs. The selection and use of ingredients have a significant influence on the halalness of the finished product. Therefore, caution is essential, especially for essential ingredients [14].

The third topic is the fees to be paid and the specific steps to register for halal certification. The comfort of business actors in Makassar, especially MSMEs, in running a business is greatly influenced by the costs and processes related to obtaining halal certification. Most MSMEs admit that obtaining a halal certificate is difficult and expensive due to the lack of official socialization by institutions such as BPJPH, LPH, and MUI, as well as the costs and procedures that must be taken to obtain halal accreditation [15].

The following study focuses on the transparency of production and documentation of business owners. Tracing the production process from raw materials to finished products is a challenge for LPH. One very helpful solution to this problem is the adoption of the right technology, which can improve transparency and documentation. Information system-based Blockchain is one example of this technology. For SMEs, documenting SJH may be easier with the use of a Blockchain [10]. Then about legislation and self-declaration. Human beings are the determining factor and the point of legal orientation. Independent statements show that the law is intended to serve the community, especially MSEs. Self-declaration requires the use of natural ingredients, a level of turnover low, and the support of the Halal Product Process (PPH). The independent declaration requires community involvement from Islamic community groups, Islamic religious institutions with legal entities, and public and private universities to help the Halal product process. Self-declaration follows participatory norms [16]. The following theme investigates the measurement of service quality. Each producer has unique or special problems that will affect the granting of halal certificates. The value of a significant gap in the reliability dimension shows that Halal Certification Bodyworkers have not been able to become advisors to customers experiencing certain challenges. Given the requirements for halal certificates in the Omnibus Law on Job Creation, the quality of Indonesia's halal certificates is still unclear. So in this case, industry players will be disadvantaged [17]. The opportunities of the global halal market are discussed in the next section. Indonesian SMEs and exporters have potential in the current global halal food market conditions, especially in the processed food industry. Halal certification procedures are necessary because food processing and the use of food additives create uncertainty regarding the halal nature of products. The JPH Law mandates that all products, including SME products, in Indonesia must have halal certification. Thus, SMEs now have additional opportunities to export their goods. Food products that have MUI certification are approved by the UAE and are recognized globally as halal and safe products. For the product to be more competitive, SMEs must obtain halal certification [18]. There is an increase in import demand from Muslim-majority countries, an increasing number of Muslims in Western countries, and the creation of halal institutions around the world to help with the export and import of halal goods. Thus, the halal certification program in Indonesia is a form of official obligation to ensure that all religious people worship and follow their religious teachings [19]. The next section discusses certification and implementation as an organizational resource, as well as their impact on the company's long-term success and sustainability. Halal certification shows a good correlation with performance, especially in a volatile context like Palestine. As a result, food manufacturers are motivated to implement food safety requirements such as Halal certificates, which not only improve their image but also their financial performance [20]. As mentioned earlier, SMEs face several obstacles during the halal certification process, therefore the use of technology is essential to improve document and data transparency, as well as map SMEs and develop halal supply chains. Increasing SMEs' understanding of the importance of halal certification through socialization [18]. The availability of easily accessible halal information centers and an innovative halal environment are needed to increase MSME food producers' understanding of halal cuisine. The purpose of the halal information center is to help food manufacturers disseminate important information about halal food, its advantages, processes, assurance systems, and every aspect of halal certification. A halal food supply chain system that includes suppliers, producers, and distributors can help create a halal ecosystem [11].

Cover

This literature review has identified various challenges faced by business actors in obtaining halal certification. Our findings highlight awareness and intent, costs, difficulties in terms of documentation and transparency, knowledge gaps that affect the ability of businesses to understand and meet halal certification requirements, service quality, global halal market opportunities, and their relationship to business quality and performance. The implications of this study show the importance of a deeper understanding of halal certification in business decision-making, as well as the need to utilize information technology media, and socialization efforts and grow the halal ecosystem. Therefore, we recommend further research to explore more effective settlement strategies and increase awareness about halal certification among business actors. Thus, these measures are expected to help face the challenges of halal certification for business actors and strengthen industry compliance and awareness of quality halal standards.

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