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<article xmlns:xlink="http://www.w3.org/1999/xlink" dtd-version="1.3" article-type="research-article"><front><journal-meta><journal-id journal-id-type="issn">2655-9617</journal-id><journal-title-group><journal-title>Journal of Islamic Economic Laws</journal-title><abbrev-journal-title>jisel</abbrev-journal-title></journal-title-group><issn pub-type="epub">2655-9617</issn><issn pub-type="ppub">2655-9609</issn><publisher><publisher-name>Universitas Muhammadiyah Surakarta</publisher-name></publisher></journal-meta><article-meta><article-id pub-id-type="doi">10.23917/jisel.v8i01.7305</article-id><article-categories/><title-group><article-title>Assessing the Reliability of Halal Certification Implementation: A Qualitative Study on Perceptions of Halal Supervisors and Micro Business Actors</article-title></title-group><contrib-group><contrib contrib-type="author"><name><surname>Bima</surname><given-names>Muhammad</given-names></name><address><country>Indonesia</country></address><xref ref-type="aff" rid="AFF-1"/></contrib><contrib contrib-type="author"><name><surname>Alim</surname><given-names>Mohammad Nizarul</given-names></name><address><country>Indonesia</country><email>nizarul@trunojoyo.ac.id</email></address><xref ref-type="aff" rid="AFF-1"/><xref ref-type="corresp" rid="cor-1"/></contrib><contrib contrib-type="author"><name><surname>Adnan</surname><given-names>Nurul Ilyana Muhd</given-names></name><address><country>Malaysia</country></address><xref ref-type="aff" rid="AFF-2"/></contrib><aff id="AFF-1">Universitas Trunojoyo Madura</aff><aff id="AFF-2">Universiti Kebangsaan Malaysia</aff></contrib-group><author-notes><corresp id="cor-1"><bold>Corresponding author:  Mohammad Nizarul Alim</bold>, Universitas Trunojoyo Madura .Email:<email>nizarul@trunojoyo.ac.id</email></corresp></author-notes><pub-date date-type="pub" iso-8601-date="2025-3-3" publication-format="electronic"><day>3</day><month>3</month><year>2025</year></pub-date><pub-date date-type="collection" iso-8601-date="2024-12-1" publication-format="electronic"><day>1</day><month>12</month><year>2024</year></pub-date><volume>8</volume><issue>01</issue><fpage>79</fpage><lpage>105</lpage><history><date date-type="received" iso-8601-date="2024-11-25"><day>25</day><month>11</month><year>2024</year></date><date date-type="rev-recd" iso-8601-date="2025-1-1"><day>1</day><month>1</month><year>2025</year></date><date date-type="accepted" iso-8601-date="2025-1-9"><day>9</day><month>1</month><year>2025</year></date></history><permissions><copyright-statement>Copyright (c) 2024 Journal of Islamic Economic Laws</copyright-statement><copyright-year>2024</copyright-year><copyright-holder>Journal of Islamic Economic Laws</copyright-holder><license><ali:license_ref xmlns:ali="http://www.niso.org/schemas/ali/1.0/">https://creativecommons.org/licenses/by-sa/4.0</ali:license_ref><license-p>This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.</license-p></license></permissions><self-uri xlink:href="https://journals2.ums.ac.id/index.php/jisel/article/view/7305" xlink:title="Assessing the Reliability of Halal Certification Implementation: A Qualitative Study on Perceptions of Halal Supervisors and Micro Business Actors">Assessing the Reliability of Halal Certification Implementation: A Qualitative Study on Perceptions of Halal Supervisors and Micro Business Actors</self-uri><abstract><p>The potential for a critical point in the food and beverage sector has led to the emergence of a crucial role in the halal industry. This research aims to examine more deeply the halal industry governance system in micro and small businesses in the food and beverage sector by reviewing the legal perspective of the halal product guarantee system in the Bangkalan and Surabaya areas, as well as diagnosing the halal certification of micro and small businesses after obtaining a halal certificate. This research uses the phenomenological method by collecting primary data through interviews with informants, namely two business actors and one halal supervisor from the Halal Inspection Institute. Researchers also took data from focus group discussions with the Halal Product Guarantee Organizing Agency. The research results show that micro and small business actors consistently implement a halal product guarantee system by the provisions of the halal product guarantee system law. Apart from meeting halal standards, business actors also emphasize the importance of maintaining product quality at every stage of the production chain. This research also found that after halal certification was issued, micro and small businesses continued to make improvements and breakthroughs to ensure product quality and halalness were maintained throughout production. This research does not explore the social and economic factors of micro and small business actors in obtaining halal certificates. However, this research provides a perspective on consistently implementing halal governance by the halal product guarantee system law, which can help increase quality values.</p></abstract><kwd-group><kwd>Halal Product Quality</kwd><kwd>Phenomenological Approach</kwd><kwd>Halal Certification</kwd><kwd>Halal Product Guarantee System</kwd><kwd>Governance</kwd><kwd>Micro and Small Enterprises</kwd></kwd-group><custom-meta-group><custom-meta><meta-name>File created by JATS Editor</meta-name><meta-value><ext-link ext-link-type="uri" xlink:href="https://jatseditor.com" xlink:title="JATS Editor">JATS Editor</ext-link></meta-value></custom-meta><custom-meta><meta-name>issue-created-year</meta-name><meta-value>2025</meta-value></custom-meta></custom-meta-group></article-meta></front><body><sec><title>INTRODUCTION</title><p>The halal industry contributes $1.2 trillion of the $2.3 trillion overall global industry to the global economy (<xref ref-type="bibr" rid="BIBR-77">(Vanany et al., 2020)</xref>; <xref ref-type="bibr" rid="BIBR-8">(Azam &amp; Abdullah, 2020)</xref>; <xref ref-type="bibr" rid="BIBR-79">(Yusof et al., 2021)</xref>; <xref ref-type="bibr" rid="BIBR-40">(Hsu et al., 2022)</xref>). Indonesia has the world's largest Muslim-majority population, with the most considerable halal consumption power of 200 million <xref ref-type="bibr" rid="BIBR-37">(Herianti et al., 2023)</xref> <xref ref-type="bibr" rid="BIBR-72">(Silalahi, 2024)</xref> <xref ref-type="bibr" rid="BIBR-46">(Khasanah, 2024)</xref>. This creates a significant market share with the potential for the development of the halal industry in fulfiling halal consumption needs <xref ref-type="bibr" rid="BIBR-68">(Rohmadi et al., 2024)</xref> <xref ref-type="bibr" rid="BIBR-23">(Fauzi &amp; Battour, 2024)</xref> <xref ref-type="bibr" rid="BIBR-39">(Hindolia et al., 2024)</xref>. The halal industry has attracted the attention of entrepreneurs because this industry has shown impressive development over time <xref ref-type="bibr" rid="BIBR-43">(Kamarulzaman et al., 2022)</xref> <xref ref-type="bibr" rid="BIBR-11">(Bahara et al., 2024)</xref>; <xref ref-type="bibr" rid="BIBR-24">(Fauzi et al., 2024)</xref>. However, the development of the halal industry also provides challenges for the government to accelerate the implementation of effective halal policies (<xref ref-type="bibr" rid="BIBR-67">(Rofi’ah et al., 2024)</xref>;<xref ref-type="bibr" rid="BIBR-61">(Qizam et al., 2024)</xref>; <xref ref-type="bibr" rid="BIBR-34">(Hariani &amp; Hanafiah, 2024)</xref>). The government provides more precise directions in implementing Law No.33 of 2014. The directive contains halal product certification, which emphasizes the importance of collaboration between the public and private sectors to overcome the challenges of implementing halal assurance certification in Indonesia <xref ref-type="bibr" rid="BIBR-6">(Aliyanti, 2022)</xref> <xref ref-type="bibr" rid="BIBR-71">(Salqaura et al., 2023)</xref> <xref ref-type="bibr" rid="BIBR-22">(Elwardah et al., 2024)</xref>. With the stipulated regulations, the quality of a product can be better guaranteed to be halal <xref ref-type="bibr" rid="BIBR-36">(Helmi et al., 2019)</xref>.</p><p>The halal industry in Indonesia still faces several significant challenges despite being recognized as one of the largest halal markets in the world <xref ref-type="bibr" rid="BIBR-25">(Fernando et al., 2024)</xref>;<xref ref-type="bibr" rid="BIBR-34">(Hariani &amp; Hanafiah, 2024)</xref>;<xref ref-type="bibr" rid="BIBR-7">(Ardiantono et al., 2024)</xref>. One of the main challenges is the low awareness of the public and business actors on the importance of halal products (<xref ref-type="bibr" rid="BIBR-1">(Ab Rashid &amp; Bojei, 2020)</xref>;<xref ref-type="bibr" rid="BIBR-70">(Salaheldeen &amp; Battour, 2024)</xref>; <xref ref-type="bibr" rid="BIBR-58">(Othman &amp; Md Nawi, 2025)</xref>). Many business actors, especially in the Micro and Small Enterprises (MSEs) sector, do not fully understand the benefits and urgency of halal certification (<xref ref-type="bibr" rid="BIBR-42">(Islami &amp; Suhma, 2023)</xref>; <xref ref-type="bibr" rid="BIBR-55">(Musadad et al., 2024)</xref>; <xref ref-type="bibr" rid="BIBR-53">(Maulida et al., 2024)</xref>). Business actors often consider the certification process an additional burden, not a strategic step to improve quality and consumer confidence (<xref ref-type="bibr" rid="BIBR-73">(Silvestri et al., 2023)</xref>; <xref ref-type="bibr" rid="BIBR-26">(Georgiev &amp; Georgiev, 2024)</xref>; <xref ref-type="bibr" rid="BIBR-15">(Busch et al., 2024)</xref>). As a result, there are still many products in the market that do not have halal certificates despite having great potential to fulfil the needs of the halal market, both domestic and international <xref ref-type="bibr" rid="BIBR-16">(Bux et al., 2022)</xref> <xref ref-type="bibr" rid="BIBR-18">(Darmalaksana, 2023)</xref> <xref ref-type="bibr" rid="BIBR-21">(Ekka, 2024)</xref>. On the other hand, halal-certified industries have a significant advantage over those that are not <xref ref-type="bibr" rid="BIBR-57">(Najmi et al., 2023)</xref> <xref ref-type="bibr" rid="BIBR-78">(Windasari et al., 2024)</xref> <xref ref-type="bibr" rid="BIBR-62">(Raimi et al., 2024)</xref>. The production process in the certified halal industry is closely monitored to ensure halalness and quality at every stage, from raw material selection to final distribution (<xref ref-type="bibr" rid="BIBR-51">(Masood &amp; Zaidi, 2023)</xref>; <xref ref-type="bibr" rid="BIBR-19">(Dashti et al., 2024)</xref>; <xref ref-type="bibr" rid="BIBR-32">(Hanifasari et al., 2024)</xref>). This gives consumers a sense of security and comfort and increases product competitiveness in the global market.</p><p>According to data from BPJPH in Indonesia, especially East Java Province, about 361,201 SH (Halal Certificates) have been issued. Of these, there are three regencies/cities with the highest rank according to the number of SH classifications: Jember, Sidoarjo, and Surabaya. In the Madura region, the highest position is based on four districts/cities, namely Pemekasan, Bangkalan, Sumenep, and Sampang. From the number of classifications, they are classified again into micro, small, medium, and large businesses. Information from the Ministry of Religious Affairs' official website explains that the domestic market is dominated by micro and small enterprises (MSEs), which number almost 65 million business units. About 70% are engaged in food, beverages, and culinary <xref ref-type="bibr" rid="BIBR-52">(Mastuki, 2021)</xref> <xref ref-type="bibr" rid="BIBR-75">(Utama, 2022)</xref>. This means that raw materials are a crucial issue when producing halal products. In its problematic processing, the food and beverage industry is prone to critical points (medium and high risk) in ingredients and processing methods <xref ref-type="bibr" rid="BIBR-52">(Mastuki, 2021)</xref> <xref ref-type="bibr" rid="BIBR-75">(Utama, 2022)</xref>.</p><p>Apart from this information, the halal industry's growth has challenges that impact the halal governance system <xref ref-type="bibr" rid="BIBR-52">(Mastuki, 2021)</xref> <xref ref-type="bibr" rid="BIBR-75">(Utama, 2022)</xref>. The governance system is essential because it will affect compliance with the rules in the SJPH Law (Halal Product Guarantee System Law). Therefore, research is needed to determine the implementation of halal product assurance governance based on the SJPH law and efforts to improve MSEs after halal certification. The previous research was conducted by <xref ref-type="bibr" rid="BIBR-44">(Khairani &amp; Hidayah, 2024)</xref>, who examined the halal product guarantee system in powdered goat milk production houses concerning the Decree of the Head of the Halal Product Guarantee Agency Number 57 of 2021. Other research on the halal Product Assurance System (SJPH) was conducted by <xref ref-type="bibr" rid="BIBR-31">(Handayani et al., 2023)</xref> by analyzing the knowledge of human resources in Poultry Slaughterhouses in applying knowledge about commitment and responsibility. The research on the governance system was conducted by <xref ref-type="bibr" rid="BIBR-5">(Alfayed &amp; Fauziah, 2023)</xref>, whose research on halal product assurance is based on fatwa. <xref ref-type="bibr" rid="BIBR-36">(Helmi et al., 2019)</xref> also examined the guarantee of halal products, which the law can influence for all products to have a halal label.</p><p>This statement's research on halal certification highlights the urgency of a halal governance system according to the Halal Product Guarantee System Law (UU SJPH). As previously explained, several studies conducted by <xref ref-type="bibr" rid="BIBR-44">(Khairani &amp; Hidayah, 2024)</xref>, <xref ref-type="bibr" rid="BIBR-31">(Handayani et al., 2023)</xref>, and <xref ref-type="bibr" rid="BIBR-5">(Alfayed &amp; Fauziah, 2023)</xref> examined the implementation of the halal product assurance system in various sectors, from powdered goat milk production houses to poultry slaughterhouses, focusing on regulations and knowledge that affect halal management. Some of these studies identify a gap, namely the need for further phenomenological analysis of the application of halal governance in Micro and Small Enterprises (MSEs), especially in the Bangkalan and Surabaya regions <xref ref-type="bibr" rid="BIBR-14">(B.P.J.P.H., 2024)</xref>. This study aims to explore the implementation of the halal assurance system in food and beverage MSEs in Bangkalan and Surabaya and diagnose improvements in governance after halal certification. It is hoped that this research can contribute to improving the implementation of halal governance by the SJPH Law and increasing the competitiveness of MSE products.</p></sec><sec><title>LITERATURE REVIEW</title><sec><title>Halal Product Guarantee (HPG) and Governance Development</title><p>Halal Product Guarantee (HPG) is a legal certainty that states that the product for processed products has been verified halal <xref ref-type="bibr" rid="BIBR-33">(Hanun et al., 2023)</xref> <xref ref-type="bibr" rid="BIBR-9">(Bachtiar et al., 2024)</xref>. Halal-verified processed products will be maintained continuously to guarantee halalness according to the provisions of LPPOM MUI <xref ref-type="bibr" rid="BIBR-27">(Giyanti et al., 2021)</xref> <xref ref-type="bibr" rid="BIBR-41">(Indah et al., 2024)</xref>. The existence of halal guarantees will impact the added value aspect of the product and increase consumer confidence in buying products <xref ref-type="bibr" rid="BIBR-48">(Lestari et al., 2023)</xref>. In addition, halal product guarantees will also have an impact on improving the expansion of market share because halal-certified products are guaranteed safety, and of course, the marketing system will be able to expand <xref ref-type="bibr" rid="BIBR-13">(Baihaki et al., 2022)</xref> <xref ref-type="bibr" rid="BIBR-63">(Rajendran et al., 2024)</xref>. This can be an opportunity to increase the growth of the halal industry, which can add progress to the halal economy industry (<xref ref-type="bibr" rid="BIBR-54">(Mohamed et al., 2020)</xref>; <xref ref-type="bibr" rid="BIBR-70">(Salaheldeen &amp; Battour, 2024)</xref>). However, it should also be noted that challenges need to be seen in the influence of halal product assurance, namely the development of a governance system after product certification.</p><p>In developing regulations and standardizing halal product assurance, it is stipulated that the rules regarding halal processes must be clear and detailed <xref ref-type="bibr" rid="BIBR-54">(Mohamed et al., 2020)</xref>; <xref ref-type="bibr" rid="BIBR-70">(Salaheldeen &amp; Battour, 2024)</xref>). For this reason, the governance system in a product's result needs more attention, considering that halal products are an essential element that can affect the development of the halal industry. Based on research by <xref ref-type="bibr" rid="BIBR-29">(Gunawan et al., 2021)</xref>, strengthening the governance system of halal product assurance needs to be improved to progress the growth of the halal industry. In addition, the development of halal certification governance needs to be carried out to improve the system in the production process, the reliability of production management, and the guarantee that products that have been verified halal and remain reliable for their halalness <xref ref-type="bibr" rid="BIBR-45">(Khan et al., 2019)</xref> <xref ref-type="bibr" rid="BIBR-19">(Dashti et al., 2024)</xref>.</p><p>Previous research on the development of governance over halal product assurance was also conducted by <xref ref-type="bibr" rid="BIBR-5">(Alfayed &amp; Fauziah, 2023)</xref>. <xref ref-type="bibr" rid="BIBR-5">(Alfayed &amp; Fauziah, 2023)</xref> examined the governance system of halal products influenced by fatwas. In <xref ref-type="bibr" rid="BIBR-5">(Alfayed &amp; Fauziah, 2023)</xref>, halal product assurance is also based on fatwas, and there are differences in views and interpretations related to fatwas, which can cause uncertainty or conflict in the regulation of halal product governance. Other studies, such as <xref ref-type="bibr" rid="BIBR-69">(Ruhmah et al., 2024)</xref>, examine the importance of a digital-based governance system in increasing the potential of halal businesses in the digital era after halal-certified products. <xref ref-type="bibr" rid="BIBR-36">(Helmi et al., 2019)</xref> also conducted previous research on halal product assurance. Their research examined how halal product assurance can be influenced by laws where all products must have a halal label, and their research also provided SWOT analysis results. Studies on the reliability of halal products, especially the consistency of quality and sustainability of halal principles, are still limited. This gap shows the lack of attention from previous research. This study aims to fill the gap by exploring implementing a sustainable halal product assurance system.</p><p>The research conducted by researchers in this context is to assess the reliability of halal product guarantees that MSE actors have obtained. This context explains that MSE actors still apply systematic procedures or quality control when halal certification is issued in halal industrialization. In addition, this study will also examine the role of MSE actors and whether they continue to innovate and improve to maintain the quality and halalness of products during the production process. Compared to previous studies, the novelty of this research is that it examines how halal industry players' governance development still carries out halal procedures when making products. In this case, governance includes production management from raw materials to ready-to-use materials that will experience the development of the process. This study also examines more deeply how it affects consumers if the development of governance runs optimally.</p><p>Halal Certification of Micro and Small Enterprises (MSEs) Products</p><p>Micro and small enterprises (MSEs) are small-sized businesses <xref ref-type="bibr" rid="BIBR-65">(Rao et al., 2023)</xref> <xref ref-type="bibr" rid="BIBR-20">(Sordi et al., 2024)</xref>. The criteria for small businesses are based on the number of workers, revenue, or assets <xref ref-type="bibr" rid="BIBR-20">(Sordi et al., 2024)</xref> <xref ref-type="bibr" rid="BIBR-2">(Abdallah et al., 2024)</xref> <xref ref-type="bibr" rid="BIBR-10">(Bag, 2024)</xref>. Micro and small enterprises (MSEs) have characteristics that can be seen in terms of assets, capital, and organizational structures that tend to be limited (<xref ref-type="bibr" rid="BIBR-28">(Glińska-Neweś et al., 2020)</xref>; <xref ref-type="bibr" rid="BIBR-64">(Rambe &amp; Khaola, 2022)</xref>; <xref ref-type="bibr" rid="BIBR-4">(Ajer et al., 2023)</xref>), according to article 35 paragraph 6 of PP. No. 7 of 2021 for small businesses, the sales owned by small companies are at least IDR 2-15 billion. In contrast, medium-sized businesses with business results range from 15-50 billion (PP. No 7, 2021). In micro and small businesses, a product that is marketed must undoubtedly have a standardized value, such as being tested for its halal nature, namely by the halal certification of Micro and Small Enterprises (MSEs) products ) <xref ref-type="bibr" rid="BIBR-50">(Maksudi &amp; Nasruddin, 2023)</xref> <xref ref-type="bibr" rid="BIBR-66">(Rifas et al., 2024)</xref>. Halal certification of Micro and Small Enterprise (MSE) products refers to the process of granting halal certificates to products produced by Micro and Small Enterprise (MSE) actors after going through a series of verifications and examinations by applicable regulations (<xref ref-type="bibr" rid="BIBR-3">(Abdur-Rauf &amp; Raimi, 2024)</xref>; <xref ref-type="bibr" rid="BIBR-38">(Hidayana et al., 2024)</xref>). This certification is given by an authorized institution, such as the Halal Examining Agency (LPH), based on the rules set by the Halal Product Guarantee Agency (BPJPH). Marketed products must guarantee a halal certificate because many consumers are Muslim.</p><p>In Indonesia, especially in the East Java Province, according to data from BPJPH (Halal Product Guarantee Agency), the number of publications with halal certificates is 361,206. Jember Regency has the highest number of SH publications, followed by Sidoarjo Regency and Surabaya City. Based on <xref ref-type="bibr" rid="BIBR-14">(B.P.J.P.H., 2024)</xref>, the Madura region has issued several halal certifications, one of which is in the Bangkalan Regency. Researchers chose Bangkalan and Surabaya as research locations for these areas. The potential for micro and small business development and the diversity of halal governance practices are in the region. In addition, Surabaya is also one of the capitals of East Java Province, where the development of the halal industry is growing significantly faster.</p></sec></sec><sec><title>METHOD</title><sec><title>Research Approach</title><p>This research uses a qualitative method with a Phenomenological approach <xref ref-type="bibr" rid="BIBR-35">(Hasan et al., 2022)</xref>. Qualitative research was chosen because this study aims to explore the implementation of SJPH (Halal Product Guarantee System) as part of the reliability of halal certificates that have been issued to be able to determine the increase in quality value and efforts to improve halal governance after certification. This research was conducted with Micro and Small Enterprises (MSEs) research subjects in the food and beverage sector. The phenomenological approach is used to examine the meaning of the life experiences of research subjects of MSE actors in the context of organizing halal certification <xref ref-type="bibr" rid="BIBR-35">(Hasan et al., 2022)</xref>. Researchers explore how the implementation of MSE actors and halal supervisors in assessing the reliability of the halal certification process according to the provisions of the SJPH (Halal Product Guarantee System).</p></sec><sec><title>Research Location</title><p>This research was conducted in two locations selected based on the characteristics and development potential of the halal industry in each region, namely Surabaya and Bangkalan <xref ref-type="bibr" rid="BIBR-14">(B.P.J.P.H., 2024)</xref>. As the capital of East Java Province, Surabaya has a vital role in the regional and national economy. Surabaya is the centre of economic growth with many business actors, especially in the Micro and Small Enterprises (MSEs) sector <xref ref-type="bibr" rid="BIBR-14">(B.P.J.P.H., 2024)</xref>. Surabaya also recorded the highest halal certificate (SH) issuance in East Java province. This shows local businesses' high awareness and compliance with halal standards <xref ref-type="bibr" rid="BIBR-14">(B.P.J.P.H., 2024)</xref>. The existence of various halal-certified industries in Surabaya reflects the importance of this city as one of the centres of Indonesia's rapidly growing halal industry.</p><p>Meanwhile, Bangkalan, located on Madura Island, was chosen as the second research location because it has a reasonably high SH issuance rate despite its status as a regency. The selection of Bangkalan considers the potential for small and medium enterprise development and the diversity of halal governance practices in the area <xref ref-type="bibr" rid="BIBR-14">(B.P.J.P.H., 2024)</xref>. As one of the emerging regions in the halal sector, Bangkalan shows interesting dynamics in implementing the halal product assurance system, which is the main focus of the research <xref ref-type="bibr" rid="BIBR-14">(B.P.J.P.H., 2024)</xref>. The diversity in halal governance in Bangkalan provides valuable insights into the challenges and opportunities MSE actors face in implementing halal procedures by regulations. Thus, these two locations offer a complete picture of the implementation and development of the halal industry at various regional scales, from large cities such as Surabaya to developing regions such as Bangkalan <xref ref-type="bibr" rid="BIBR-14">(B.P.J.P.H., 2024)</xref>.</p></sec><sec><title>Data Collection Technique</title><p>The interview data collection technique certainly has the identity of the intended informant or resource person. <xref ref-type="table" rid="table-1">Table 1</xref> presents the identity of the informants or resource persons involved in this study. This table includes information on name, gender, age, status, and the location or institution where the informant works. The following presents the complete criteria of the research informants the researcher chose.</p><table-wrap id="table-1" ignoredToc=""><label>Table 1</label><caption><p>Identity of Informants or Resource Persons</p></caption><table frame="box" rules="all"><thead><tr><th colspan="1" rowspan="1" style="" align="center" valign="top">No</th><th colspan="1" rowspan="1" style="" align="center" valign="top">Nama</th><th colspan="1" rowspan="1" style="" align="center" valign="top">Gender</th><th colspan="1" rowspan="1" style="" align="center" valign="top">Age (Years)</th><th colspan="1" rowspan="1" style="" align="center" valign="top">Status</th><th colspan="1" rowspan="1" style="" align="center" valign="top">Location/Institution</th></tr></thead><tbody><tr><td colspan="1" rowspan="1" style="" align="center" valign="top">1</td><td colspan="1" rowspan="1" style="" align="center" valign="top">ND</td><td colspan="1" rowspan="1" style="" align="center" valign="top">Female</td><td colspan="1" rowspan="1" style="" align="center" valign="top">50</td><td colspan="1" rowspan="1" style="" align="center" valign="top">Business</td><td colspan="1" rowspan="1" style="" align="center" valign="top">Surabaya</td></tr><tr><td colspan="1" rowspan="1" style="" align="center" valign="top">2</td><td colspan="1" rowspan="1" style="" align="center" valign="top">EN</td><td colspan="1" rowspan="1" style="" align="center" valign="top">Female</td><td colspan="1" rowspan="1" style="" align="center" valign="top">54</td><td colspan="1" rowspan="1" style="" align="center" valign="top">Business</td><td colspan="1" rowspan="1" style="" align="center" valign="top">Bangkalan</td></tr><tr><td colspan="1" rowspan="1" style="" align="center" valign="top">3</td><td colspan="1" rowspan="1" style="" align="center" valign="top">MF</td><td colspan="1" rowspan="1" style="" align="center" valign="top">Male</td><td colspan="1" rowspan="1" style="" align="center" valign="top">28</td><td colspan="1" rowspan="1" style="" align="center" valign="top">Halal Supervisor</td><td colspan="1" rowspan="1" style="" align="center" valign="top">Halal Inspection Institute Airlangga University Surabaya</td></tr></tbody></table></table-wrap><p>Researchers used data collection techniques in the form of in-depth interviews. The primary interviews were conducted with MSEs (Micro and Small Enterprises), ND, and EN to understand the implementation of the SJPH (Halal Product Guarantee System) and improving halal governance after certification. In addition, interviews were also conducted with the halal supervisor, Mr (MF) from LPH (Halal Inspection Institute). The reason for choosing interviews with halal supervisors is because they have an essential role in the halal certification process and monitoring the implementation of SJPH. This creates a different perspective on the halal certification process, how the halal product assurance system is implemented, and how supervision is carried out after the product obtains a halal certificate. This perspective will help researchers understand the halal product assurance system's regulations, procedures, and practices. The results of the interview data collection will be systematically analyzed by identifying patterns, themes, and key findings that emerge from interviews with business actors and halal supervisors. This analysis aims to answer the formulation of research problems that can contribute to developing a halal governance system and implementing SJPH in MSEs.</p></sec></sec><sec><title>RESULTS</title><sec><title>Analysis of Challenges in Halal Product Guarantee in Madura and East Java</title><p>The challenges in halal product assurance will be explained in <xref ref-type="table" rid="table-2">Table 2</xref> as a summary of the research findings. <xref ref-type="table" rid="table-2">Table 2</xref> illustrates the main challenges faced by various parties, including business actors and certification bodies, in halal product assurance. The challenges faced include multiple aspects ranging from limited halal raw materials and constraints in tracing raw materials to problems in halal certification's governance and monitoring system. In addition, there are gaps in the facilities and training needed to support MSEs in meeting halal standards. As a resource person, the Deputy Director of LPPOM MUI East Java, Mr (FM), explained these challenges and highlighted the importance of collaboration between institutions and businesses to increase the competitiveness of halal products in the market share. The following is a summary of the explanation shown in <xref ref-type="table" rid="table-2">Table 2</xref>.</p><table-wrap id="table-2" ignoredToc=""><label>Table 2</label><caption><p>Summary of Research Findings Challenges in Halal Product Guarantee</p></caption><table frame="box" rules="all"><thead><tr><th colspan="1" rowspan="1" style="" align="center" valign="middle"><p>Challenges in Halal Product Guarantee</p><break/></th><th colspan="1" rowspan="1" style="" align="center" valign="middle">Key Challenges</th><th colspan="1" rowspan="1" style="" align="center" valign="middle">Informant /Source</th><th colspan="1" rowspan="1" style="" align="center" valign="middle">Explanation</th></tr></thead><tbody><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><list list-type="bullet"><list-item><p>Limited Halal Raw Materials in Madura</p></list-item><list-item><p>Raw Material Traceability Constraints</p></list-item><list-item><p>Critical Points in MSE Production</p></list-item><list-item><p>Governance System Challenges</p></list-item><list-item><p>Periodic Monitoring and Evaluation Difficulties</p></list-item><list-item><p>Facility and Training Gaps</p></list-item><list-item><p>Institutional and Business Collaboration</p></list-item><list-item><p>Additional Support for Increased Competitiveness</p></list-item><list-item><p>UMK Awareness is Not Optimal</p></list-item></list></td><td colspan="1" rowspan="1" style="" align="left" valign="top">Deputy Director of LPPOM MUI East Java, Mr (FM)</td><td colspan="1" rowspan="1" style="" align="left" valign="top">“Limited halal raw materials, difficulty in fulfiling standards by MSEs, and lack of monitoring of lifetime certification are the main challenges. The lack of collaboration and support for MSEs related to training, raw materials, and production systems also worsens the implementation of halal certification, despite the high awareness of business actors.”</td></tr></tbody></table></table-wrap><p>Since establishing LPPOM MUI East Java, the halal certification process has been running since 1908, reflecting a strong commitment to ensuring halal products <xref ref-type="bibr" rid="BIBR-12">(Baidlowi, 2017)</xref>. Various innovations have been introduced, ranging from the halal assurance system to the digitalization of the certification process <xref ref-type="bibr" rid="BIBR-17">(Choirunnisa et al., 2023)</xref>. This initiative aligns with increasing consumer and business confidence in the halal status of products on the market, an essential aspect of current regulations.  Halal certification in Indonesia, especially in the Bangkalan and Surabaya regions, is an important topic given the enormous market potential among the majority Muslim population. With the significant contribution of the halal industry to the global economy and promising growth, the success of halal certification depends on a sound governance system <xref ref-type="bibr" rid="BIBR-60">(Purnama &amp; Ulinnuha, 2023)</xref>. Based on the statement of the Deputy Director of LPPOM MUI East Java, Mr (FM), the halal certification process in Madura faces several challenges and offers opportunities for continuous improvement.</p><p>One of the main challenges in halal certification in the Madura region is the limited raw materials that meet halal requirements, especially meat. Although some slaughterhouses are halal certified, there are still difficulties in ensuring that all businesses use raw materials of clear origin <xref ref-type="bibr" rid="BIBR-49">(Luthfiyah et al., 2024)</xref>. In Java, outlets that provide halal meat provide more ease in the traceability process. However, this differs from Madura, which faces obstacles in supporting MSE product certification. In the production process, critical points need attention, such as using meat milling equipment. Smaller MSEs often have difficulty in meeting the standards of halal meat processing. The importance of clear and consistent work procedures was also expressed, whereas practical application is usually confusing. This relates to a governance system emphasizing the importance of supervision to ensure that every step in the production process must comply with halal requirements.</p><p>Based on the results of FGD (Focus Group Discussion) by Mr (FM) as the deputy director of administration of LPPOM MUI East Java, it is explained that there are other obstacles faced related to periodic monitoring and evaluation of products that have been certified. With lifetime certification, there are challenges in maintaining product quality. LPPOM has taken the initiative to conduct unannounced audits as a form of responsibility to ensure that products that have been certified still meet halal standards. This phenomenon shows the urgency of collaboration between institutions and businesses in maintaining halal products in the market. Although awareness of the importance of halal certification among MSEs in Bangkalan and Surabaya is relatively high, additional support is still needed to provide raw materials, train on production processes, and monitor regulars. This is related to the halal product assurance governance system by procedures. In addition, this support is also helpful in improving quality in terms of processes and management to ensure the halalness of the products produced. This aligns with the company's goal to increase the competitiveness of halal products in the market.</p></sec><sec><title>Regulation in Regulating Governance for Halal Product Guarantee</title><p><xref ref-type="table" rid="table-3">Table 3</xref> presents a summary of research findings regarding challenges in the regulation of halal certification in Indonesia. This research explores the challenges arising from the change in regulation from a voluntary to a mandatory system and the impact on businesses and regulatory agencies. The main challenges include changes in the law, more complex supervision, certification renewal obligations, and sanctions for violations. In addition, limited human resource capacity and technology are also issues that must be addressed. The information in <xref ref-type="table" rid="table-3">Table 3</xref> refers to BPJPH (Badan Penyelenggara Jaminan Produk Halal) and related regulations that ensure the integrity of halal products in Indonesia. The following summarises the research findings in <xref ref-type="table" rid="table-3">Table 3</xref> on challenges in the regulation of halal certification.</p><table-wrap id="table-3" ignoredToc=""><label>Table 3</label><caption><p>Summary of Research Findings Challenges in Halal Certification Regulation</p></caption><table frame="box" rules="all"><thead><tr><th colspan="1" rowspan="1" style="" align="center" valign="middle">Challenges in Certification Regulation Halal</th><th colspan="1" rowspan="1" style="" align="center" valign="middle">Key Challenges</th><th colspan="1" rowspan="1" style="" align="center" valign="middle">Informant /Source</th><th colspan="1" rowspan="1" style="" align="center" valign="middle">Explanation</th></tr></thead><tbody><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><list list-type="bullet"><list-item><p>Regulation Change from Voluntary to Mandatory</p></list-item><list-item><p>Law Amendment and Article Replacement</p></list-item><list-item><p>More Complex Supervision</p></list-item><list-item><p>Halal Certificate Validity Period</p></list-item><list-item><p>Certification Renewal Obligation</p></list-item><list-item><p>Sanctions for Violation of Halal Certification</p></list-item><list-item><p>Limited Human Resource Capacity and Technology</p></list-item></list></td><td colspan="1" rowspan="1" style="" align="left" valign="top">Information / Sources refer to BPJPH (Halal Product Guarantee Organisation Agency) and regulations related to halal certification in Indonesia, namely the Halal Product Guarantee System Law (UU SJPH).</td><td colspan="1" rowspan="1" style="" align="left" valign="top">“The change in halal certification regulations from voluntary to mandatory presents challenges, such as more complex supervision and the need for regular surveillance. Businesses must renew certification if there are product changes, while strict sanctions are applied for violations. BPJPH is also expanding its surveillance capacity, but challenges remain in the effectiveness and reach of surveillance.”</td></tr></tbody></table></table-wrap><p>Regulations related to halal certification were previously voluntary and are now mandatory. This is in line with the amendment to Law No. 33 of 2014, which requires all products circulating in Indonesian territory to be halal certified, except for haram or exempted products. It aims to strengthen the supervision and governance of halal products in Indonesia. This regulatory change also enhances the role of regulation in legal certainty for consumers and businesses regarding the halal status of products. In addition, the supervision of halal products is divided into three main objects: business actors, products, and partners. BPJPH is the primary supervisor and involves ministries, local government agencies, and the community in the supervision process <xref ref-type="bibr" rid="BIBR-47">(Koeswinarno &amp; Zakiyah, 2022)</xref>. Supervision consists of three main pillars: regular, integrated cross-sectoral, and occasional supervision. The addition of this mechanism ensures that supervision can be carried out consistently and evenly by established procedures.</p><p>The validity period of the halal certificate reflects the importance of periodic evaluation of the product's halal status <xref ref-type="bibr" rid="BIBR-30">(Hadiyanto et al., 2024)</xref>. Halal certification that does not have a validity period is considered to cause uncertainty for consumers and business actors. So, the proposed new regulation suggests periodic surveillance. In this case, business actors must renew certification if there are changes in the composition or production process. This aligns with the proxy that product halalness should be audited initially and periodically to maintain public trust and legal certainty <xref ref-type="bibr" rid="BIBR-74">(Sulastini et al., 2024)</xref>. The new regulations also regulate sanctions for business actors who violate halal certification rules. The sanctions include written warnings, administrative fines, revocation of halal certificates, and withdrawal of products from circulation. These sanctions show that supervision of product halalness stops at the certification stage and continues in the distribution and consumption phases. BPJPH has also made various efforts to expand the reach of supervision. This shows that BPJPH is also increasing the capacity of human resources and technology capacity to support halal supervision implementation more effectively <xref ref-type="bibr" rid="BIBR-56">(Nafisah &amp; Nisa, 2024)</xref>.</p></sec><sec><title>The Importance of Governance on Halal Product Assurance</title><p>Good governance of halal product assurance is essential to ensure the halalness of products circulating in the market. Implementing the Halal Product Guarantee must involve collaborating with institutions such as BPJPH, the Ministry of Religion, and LPH under supervision. <xref ref-type="table" rid="table-3">Table 3</xref> summarizes research findings regarding governance challenges to halal product assurance. In this study, various challenges faced in implementing the halal assurance system were identified, ranging from the importance of collaboration between BPJPH and related institutions to challenges in supervision that do not only rely on laboratory tests. In addition, there is a need for detailed documentation in every stage of production and the need for proper understanding and application of regulations, especially among micro and small businesses. This research also highlights the importance of sustaining the halal industry, which is key in ensuring the halalness of products in the market.</p><table-wrap id="table-4" ignoredToc=""><label>Table 4</label><caption><p>Summary of Research Findings on Governance Challenges to Halal Product Guarantee</p></caption><table frame="box" rules="all"><thead><tr><th colspan="1" rowspan="1" style="" align="left" valign="top">Governance Challenges to Halal Product Assurance</th><th colspan="1" rowspan="1" style="" align="left" valign="top">Key Challenges</th><th colspan="1" rowspan="1" style="" align="left" valign="top">Informant /Source</th><th colspan="1" rowspan="1" style="" align="left" valign="top">Explanation</th></tr></thead><tbody><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"/><td colspan="1" rowspan="1" style="" align="left" valign="top"><list list-type="bullet"><list-item><p>Collaboration between BPJPH and Other Institutions</p></list-item><list-item><p>Supervision that does not rely solely on laboratories</p></list-item><list-item><p>The Importance of Detailed Documentation</p></list-item><list-item><p>Challenges in Halal Assurance System for Micro and Small Enterprises</p></list-item><list-item><p>Understanding and Appropriate Implementation of Regulations</p></list-item><list-item><p>Continuous Strengthening of Halal Industry</p></list-item></list></td><td colspan="1" rowspan="1" style="" align="left" valign="top">Sources are obtained from BPJPH (Halal Product Guarantee Organisation Agency), as well as other related institutions, such as the official website of the Ministry of Religious Affairs and Halal Examining Institutions (LPH) involved in the halal supervision and certification process in Indonesia.</td><td colspan="1" rowspan="1" style="" align="left" valign="top">Challenges in halal certification include the importance of collaboration between BPJPH and other agencies for effective monitoring. Some aspects of halalness, such as the method of slaughter, cannot be tested in a laboratory, so detailed tracking of raw materials is necessary. Micro and small enterprises should document the entire production process to maintain halalness and increase competitiveness in the halal market.</td></tr></tbody></table></table-wrap><p>In the supervision process, BPJPH does not act alone; it collaborates with other institutions, such as the Ministry of Religion and the Halal Examining Organisation (LPH). BPJPH functions as a regulator and primary authority holder, but supervision in the field requires synergy with various parties, including local governments and other related institutions. This synergy is relevant to the introduction, which emphasizes the importance of inter-agency collaboration in strengthening the halal assurance system in Indonesia. It is important to note that not all aspects of product halalness can be tested through a laboratory. For example, in the case of geprek chicken products, halalness depends on how the chicken is slaughtered and the source of the meat, which cannot be tested in a laboratory. This phenomenon demonstrates the importance of traceability from the source of raw materials to the final product, which must be documented to ensure that all ingredients used fulfil halal requirements.</p><p>Behind a halal assurance system, a key principle is the ability to trace every ingredient and process in production. Detailed documentation covers all stages, from ingredient selection to procurement, storage, and production. This is essential to maintain product halalness consistently over time. Through an in-depth understanding of the critical points in halal certification and the governing regulations, business actors in the halal industry sector, especially in the Bangklan and Surabaya areas, can be better prepared to face challenges and take advantage of opportunities. This research further examines how micro and small business governance systems can be improved after obtaining halal certification. By applying the principles of the halal assurance system, business actors can increase product competitiveness and contribute to the sustainable growth of the halal industry. Integration between the understanding of halal certification and the challenges faced in the process is key to strengthening the position of the halal industry in Indonesia. This integration mainly supports inclusive and sustainable economic development.</p></sec><sec><title>Interview Results of MSE Business Actors in Bangkalan (EN) About SJPH (Halal Product Guarantee System)</title><p>Business owners (EN) are confident that raw materials such as turmeric, ginger, and laos purchased from the market are halal. However, ENs recognize uncertainty regarding the halalness of the plastic packaging used. This suggests the need for further transparency from raw material manufacturers regarding their halal status. EN also believes that having a halal logo will expand market share as consumers increasingly know the importance of halal products.</p><p>“God willing, it will increase because one, with this halal logo, my market share opportunities are wider,” (EN, 30 October 2024).</p><p>However, businesses (ENs) face challenges in obtaining halal certification for their plastic packaging that has not been verified as halal. Businesses must not report the halal certification status yearly but must report when the certificate expires. This phenomenon shows room for improvement in the reporting system to be more structured. The Bangkalan Regency Government has also attempted to accelerate halal certification through training and mentoring programs for MSMEs and cooperation with halal certification bodies. However, there are still obstacles, such as the lack of socialization and understanding of the importance of halal certification among MSME players. Business actors have participated in various trainings related to production SOPs and digital marketing and have significantly benefited from the knowledge gained.</p><disp-quote><p>“Wow, the benefits are really great because of the knowledge I got from the training,”</p><attrib> (EN, 30 October 2024)</attrib></disp-quote></sec><sec><title>Interview Results of MSE Business Actors in Surabaya (ND) About SJPH (Halal Product Guarantee System)</title><p>ND actively communicates with BPJPH (Badan Penyelenggara Jaminan Produk Halal). Although her products are halal-certified, ND still conducts regular consultations to ensure that her products remain compliant with halal standards, especially when launching new products. One of the challenges ND faced was when the palm sugar used was not halal-certified. After consulting with BPJPH, ND was advised to replace the ingredients with products that had more precise information and met halal standards.</p><disp-quote><p>“I just consulted with BPJPH to make sure it was safe to use.”</p><attrib> (ND, 11 October 2024)</attrib></disp-quote><p>ND feels that an institution like LPH benefits MSEs like hers, especially in checking the halalness of raw materials available in the market. If there are questionable ingredients, ND can quickly get guidance to replace them with more suitable ingredients.</p><p>Currently, there are two types of halal documents that businesses can use. First is the halal certificate issued by the Indonesian Ulema Council (MUI), which has a specific validity period and must be renewed after a certain period. Second, a halal certificate issued by the Halal Product Guarantee Agency (BPJPH) is valid forever without renewal. This makes it easier for businesses to guarantee the halalness of their products, although the two types of certificates have differences in terms of renewal and supervision provisions.</p><disp-quote><p>“There are two halal documents that can be used for now: the halal certificate issued by MUI, and the halal certificate issued by BPJPH which is valid forever,”</p><attrib>(MF, 25 September 2024).</attrib></disp-quote></sec><sec><title>Interview Results to Halal Supervisor (MF) About SJPH (Halal Product Assurance System)</title><p>In the interview with the halal supervisor (MF), several important points related to implementing the halal policy and the halal certification process in the business were expressed. The halal supervisor emphasized that the commitment of business actors to halal policies must be clear and structured, which can be seen from the implementation of proper procedures in every aspect of the business. This commitment covers the entire process, from purchasing raw materials, processing, and storage to product distribution. These procedures are explained in detail as Standard Operating Procedures (SOPs) implemented in all business lines. These SOPs not only serve to maintain product quality but also ensure that every step in the production process fulfils the established halal requirements. The implementation of this SOP, according to the halal supervisor, is one of the indicators showing that the halal policy is well implemented.</p><disp-quote><p>“Regarding how to ensure that this halal policy has been implemented or not, the indicators can be seen from the form of implementation, such as SOPs related to all processes in the business business,” </p><attrib>(MF, 25 September 2024)</attrib></disp-quote><p>In addition, business actors are also required to install posters or banners containing information regarding implementing the halal product assurance system (SJPH) in strategic areas, especially in the production room. This banner serves as a reminder to all employees about the importance of applying halal principles in every production stage.</p><disp-quote><p>“The second is usually from SJPH to provide a template or description for posters or banners that are affixed to the business space,”</p><attrib>(MF, 25 September 2024).</attrib></disp-quote></sec></sec><sec><title>DISCUSSION</title><p>The halal certification process in East Java, which began in 1908 by LPPOM MUI, reflects ongoing efforts to ensure the halalness of products in the market. Various innovations have been made, such as implementing a halal assurance system and digitalization, which aims to increase consumer and business confidence in the halal status of products. The Bangkalan and Surabaya regions, with a majority Muslim population, have great potential in the development of the halal industry, although faced with governance challenges. In Madura, limited halal raw materials constitute a significant obstacle, especially meat, making tracing its origin difficult. Although some slaughterhouses are halal-certified, limited access makes it difficult for MSEs to meet halal processing standards, especially when using appropriate tools and procedures. In addition, halal certification, often granted for life, raises challenges in ensuring the halalness of products on an ongoing basis, so periodic audits and evaluations are needed to maintain quality and public trust.</p><p>Regulatory changes that require halal certification through Law No. 33 of 2014 emphasize the importance of comprehensive supervision by BPJPH together with other institutions, such as the Ministry of Religious Affairs and LPH. Supervision is carried out through regular, cross-sector, and sudden audits to ensure business actors' compliance with halal standards, including documentation of the production process from raw materials to the final product. This regulation also regulates strict sanctions, such as revocation of halal certificates to product withdrawal from the market, to maintain the integrity of halal products. Inter-agency collaboration is essential in creating effective governance, especially in supporting MSEs through providing raw materials, production training, and regular monitoring. With a strong governance system, regulatory integration, and adequate support, the halal industry in regions such as Bangkalan and Surabaya can increase competitiveness while contributing to inclusive and sustainable economic growth.</p><sec><title>Implementation of Halal Policy and Challenges faced by MSEs in Bangkalan</title><p>MSE actors in Bangkalan face various challenges in implementing halal policies. Despite implementing hygienic production procedures and choosing quality raw materials, they have difficulty obtaining halal certification due to limited free quotas and paid certification fees. In addition, there is uncertainty regarding the halalness of the plastic packaging used. External supervision from the point of sale helps maintain quality, but businesses do not self-check. Socialization and understanding of halal certification are still limited despite government training programs. MSEs expect the halal logo to expand their market, but there are still obstacles in the certification and reporting process.</p><p>In production, the business actor (EN) sorts raw materials to eliminate those that do not meet the standards. In addition, EN uses gloves during production and washes raw materials with clean water. This shows a commitment to product hygiene and halalness. The business actor (EN) stated that although he does not conduct routine checks independently, the souvenir center where his products are sold performs quality control. They monitor the expiry date of products and give directions if there are products that are close to expiry to be destroyed. This reflects an external monitoring system that helps maintain product quality.</p><p>Regarding halal certification, the business actor (EN) revealed that two of its products are not yet halal certified as the free quota for accreditation has been exhausted. EN plans to apply for paid certification for new products such as candied ginger and dried lemon. This shows the challenges MSEs face in obtaining halal certification, especially concerning cost and limited quota. At the district level, data shows that of the 2,062 MSE products that applied for halal certification, only 944 have been certified, while 1,118 products are still awaiting the issuance process.</p><p>These interviews show that MSEs in Bangkalan have taken significant steps to ensure the halalness of their products through good raw material selection and hygienic production practices. However, there are still challenges related to halal certification and transparency from raw material producers. Education and support from the government are essential to help MSEs understand and fulfil halal certification requirements to improve the competitiveness of their products in the market.</p></sec><sec><title>Halal Policy Implementation and Challenges for Micro and Small Enterprises (MSEs) in Surabaya</title><p>ND, a micro and small enterprise (MSE) in Surabaya, produces spice-based coffee, such as ground coffee and liquid coffee. ND shared her experience in implementing a halal policy, which covers raw materials, the production process, distribution, and packaging. With a background in Sharia education, ND profoundly understands the importance of halal in every aspect of his business. This is reflected in his commitment to ensuring all products produced are halal and safe for consumption.</p><p>Most raw materials the business (ND) uses are essential ingredients from the Pasuruan area. ND chooses ingredients such as arabica and robusta coffee beans, cinnamon, and peppercorns sourced from traditional markets in predominantly Muslim areas. According to him, this provides additional assurance of the ingredients' halalness. Even for ingredients unavailable locally, such as cardamom from the Middle East, ND makes sure to buy from reputable traders who understand halal principles. </p><p>The business (ND) takes various steps to maintain product quality and halalness in production. Once the raw materials are obtained, the coffee beans and spices are ground using a grinder that ND owns, or ND utilizes a grinding service in the market where the ingredients are purchased. After crushing, the raw materials are washed and dried manually by sun drying or using an oven before being roasted to the desired quality.  Equally important is the selection of product packaging. ND ensures all packaging has a halal logo, such as mica for ground coffee or glass bottles for liquid coffee. To ensure the halalness of the packaging, he even checks with the Halal Product Guarantee Agency (BPJPH). According to him, halal must be guaranteed at every stage, from ingredients to packaging, so the product follows Sharia principles.  </p><p>In the aspect of auditing, ND acknowledges that there are rules that must be followed if there are changes to the product, both in form, composition, and packaging. ND has consulted with the Head of the Halal Agency of Universitas Airlangga (MF) regarding the obligation to re-register halal certification if changes occur. A re-audit is not required if the product remains the same as registered in the initial certification. However, if there is a change, for example, from mica to paper packaging or a change in form from liquid to solid, then certification renewal is mandatory.</p><p>ND's experience reflects the dedication of an MSE actor in ensuring his products are halal and safe for consumption. However, ND does not deny that challenges are faced, such as limited information from raw material producers and the high certification cost. The Surabaya City Government itself has provided support in the form of training and mentoring. However, there are still obstacles regarding socialization and understanding of MSE actors about the importance of halal certification. Through his efforts, ND hopes that his coffee products will be accepted in the local market and competitive in the broader market. Continued support from relevant agencies is essential to help MSEs like ND overcome various challenges on their journey to success.</p></sec><sec><title>Halal Policy Implementation and Challenges in Certification by Halal Supervisors</title><p>The commitment of business actors to ensure the halalness of products can be seen transparently by all parties, both by employees who are directly involved in the production process and by consumers who buy these products. The halal supervisor (MF) also explained that to maintain the continuity and consistency of the implementation of the halal system, business actors must form a halal supervisory team consisting of various parties who have responsibilities in the production process. This team should include the business leader, the halal supervisor, and the production and purchasing departments. Each part of this team has clear and specific tasks to ensure that every raw material used and every step in the production process follows the established halal standards. This structured team is essential to ensure that the entire process runs well and is monitored and that no steps violate halal principles.</p><p>In addition, the halal supervisor explained the importance of supporting documents that business actors must prepare to obtain halal certification. The main document must be prepared is a halal certificate issued by the Indonesian Ulema Council (MUI) or the Halal Product Guarantee Organisation (BPJPH). Halal certificates from MUI are usually valid for 3 to 4 years, while certificates from BPJPH are valid for life.</p><p>This halal certificate is the primary reference to ensure that the products produced have gone through a process by Islamic law and that the products are suitable for consumption by Muslims. However, businesses sometimes face situations where the raw materials used do not have a halal certificate. In this case, the halal supervisor explained that companies can look for other supporting documents, such as certificates of analysis or material specifications, showing that the material is safe and meets halal standards. MF explained that if the material does not have a halal document, we should ask for the specifications and see if the material is still allowed in the MUI fatwa. This is important to maintain transparency and clarity regarding the origin of the raw materials used in the product and to ensure that the ingredients do not contain haram elements that can cancel the product's halal status.</p><p>In addition, halal supervisors also discuss handling ingredients containing microbes, such as cheese, often used in food products. For ingredients like this, business actors must refer to the MUI fatwa, which provides guidelines regarding ingredients still allowed to be used in halal products. In implementing the halal policy, the halal supervisor emphasizes the importance of referring to the Indonesian Ulema Council (MUI) fatwa as the main guideline in determining the halalness of the ingredients used in production. The MUI fatwa is a legal basis and reference for business actors when choosing raw materials that follow Islamic law principles. The halal supervisor explained that if a raw material is not equipped with an official halal document, the next step is to request a complete specification of the material from the supplier or the party providing it. This process is essential to ensure that the ingredient does not contain elements prohibited in Islam. The halal supervisor added that after obtaining the ingredient specifications, they would check whether the ingredients were according to the provisions in the MUI fatwa. The MUI fatwa provides clear guidelines on ingredients that are allowed and not allowed to be used in halal products. If the ingredient is listed in the MUI fatwa as halal and does not contain haram elements, then the ingredient can be used in production. Conversely, if the material does not meet the halal requirements according to the MUI fatwa, then the material must be replaced with other materials that comply with halal standards.</p><p>Overall, these interviews show that implementing a halal product assurance system requires a strong commitment and supervision involving all parties involved in the production process. The sustainability of halal certification depends on active involvement in maintaining product quality and halalness. This can be done by ensuring that all raw materials used in production meet the applicable regulations and that the entire production process is carried out according to the halal principles set by MUI and BPJPH. With a structured system and strict supervision, business actors can ensure that the products produced meet quality standards and guarantee the halalness of these products for Muslim consumers.</p></sec></sec><sec><title>CONCLUSION</title><p>The halal certification process continues to develop with various innovations, such as the halal assurance system and digitalization of the certification process. The purpose of this study is to examine the implementation of the Halal Product Assurance System (SJPH) governance in micro and small businesses in the food and beverage sector in the Bangkalan and Surabaya areas. One of the main problems is the critical points in the production process found in the processing of raw materials. The importance of governance by the SJPH (Halal Product Guarantee System) is emphasized to ensure that the provisions of Islamic law market products. In the results of this study, it was found that MSE actors have made significant efforts to ensure product halalness, such as selecting halal raw materials and implementing hygienic production procedures. MSE actors also try to improve after certification to ensure product quality and halalness are maintained throughout production. This research deepens the understanding of Halal Product Guarantee System (HPS) governance implementation in MSEs and challenges in the halal certification process, especially regarding raw material processing. In addition, this research guides MSE actors in implementing governance by SJPH and improving product quality and halalness to ensure the sustainability of halal certification.</p></sec><sec><title>ADVICE</title><p>Although MSEs have made significant progress in the halal product assurance system, challenges still must be overcome. These challenges are mainly related to supporting MSEs (Micro and Small Enterprises) in obtaining halal certification and ensuring the sustainability of product quality. Collaboration between the government, halal certification bodies, and MSE actors is essential to ensure that the halal certification process runs by the procedures. Therefore, it is recommended that the government create a mentoring or guidance program for MSEs who are about to apply for halal certification. Thus, actors can strengthen product competitiveness to expand market reach at the national and international levels.</p></sec><sec><title>RESEARCH LIMITATIONS</title><p>This study does not discuss the social and economic factors of MSE actors, such as financial limitations, access to training, and education levels, which can affect their ability to comply with SJPH. 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