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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.v6i2.22313</article-id><article-categories/><title-group><article-title>Panopticism on The Consumption of Halal Products in Indonesian Muslim Society Markets</article-title></title-group><contrib-group><contrib contrib-type="author"><name><surname>Desika</surname><given-names>Pratiwi</given-names></name><address><country>Indonesia</country><email>pratiwidesika98@gmail.com</email></address><xref ref-type="aff" rid="AFF-1"/><xref ref-type="corresp" rid="cor-0"/></contrib><contrib contrib-type="author"><name><surname>Ulinnuha</surname><given-names>Roma</given-names></name><address><country>Indonesia</country></address><xref ref-type="aff" rid="AFF-2"/></contrib><aff id="AFF-1">Univeritas Islam Negeri Sunan Kalijaga Yogyakarta, Indonesia</aff><aff id="AFF-2">Universitas Islam Negeri Sunan Kalijaga Yogyakarta, Indonesia</aff></contrib-group><author-notes><corresp id="cor-0"><bold>Corresponding author: Pratiwi Desika</bold>, Univeritas Islam Negeri Sunan Kalijaga Yogyakarta, Indonesia .Email:<email>pratiwidesika98@gmail.com</email></corresp></author-notes><pub-date date-type="pub" iso-8601-date="2023-7-1" publication-format="electronic"><day>1</day><month>7</month><year>2023</year></pub-date><pub-date date-type="collection" iso-8601-date="2023-7-1" publication-format="electronic"><day>1</day><month>7</month><year>2023</year></pub-date><volume>6</volume><issue>2</issue><fpage>41</fpage><lpage>59</lpage><history><date date-type="received" iso-8601-date="2023-5-22"><day>22</day><month>5</month><year>2023</year></date><date date-type="rev-recd" iso-8601-date="2023-6-1"><day>1</day><month>6</month><year>2023</year></date><date date-type="accepted" iso-8601-date="2023-7-1"><day>1</day><month>7</month><year>2023</year></date></history><permissions><copyright-statement>Copyright (c) 2023 Journal of Islamic Economic Laws</copyright-statement><copyright-year>2023</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/9449" xlink:title="Panopticism on The Consumption of Halal Products in Indonesian Muslim Society Markets">Panopticism on The Consumption of Halal Products in Indonesian Muslim Society Markets</self-uri><abstract><p>State standardization in realizing the legitimacy of halal products focuses on the rules in Law No. 33 of 2014, which regulate Halal Product Guarantee. The halal label is a sign of the halal statement of a product and a halal guarantee for Muslim consumers in Indonesia. The company’s self-claim on the Halal certification serves as one of the problems besides the issue of habituation. In this vein, Halal certification is designed to control and regulate product halalness in the form of supervision to gain each producer’s acceptance. This article aims to determine the state's role and regulations as a panopticon for producers to register their products to obtain halal certification. The method used in this article is a qualitative approach using library research and the theory panopticon perspective of Michel Foucault to analyze it. The results of this article show that the state and regulations have yet to arrive at the panopticon system in the absence of strong law enforcement. This regulation functions as a monitoring tool for producers by referencing the halal label and its certification printed on the product. The implication of halal certification, a mechanism from internalizing power over every product in circulation to ensure quality and safety in the production process to achieving the status of tested halal, constitutes a more forceful discipline method.</p></abstract><kwd-group><kwd>Halal Certification</kwd><kwd>Halal Products</kwd><kwd>Panopticism</kwd><kwd>Producer</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>2023</meta-value></custom-meta></custom-meta-group></article-meta></front><body><sec><title>INTRODUCTION</title><p>This article examines how the state's role with its regulations works as a panopticon for producers to register their products to obtain halal certification. The state intervenes in the market through regulations to create demand for halal certification and products. By regulation, all products circulating and marketed in the territory of Indonesia must be halal certified. This halal certification can be an effective marketing campaign for business actors targeting this segment. It is known that Indonesia is the largest Muslim-majority country, with the largest consumption of halal products reaching US$184 billion, including food, cosmetics, fashion, tourism, and medicines <xref ref-type="bibr" rid="BIBR-24">(Standard, 2022)</xref>. Therefore, halal certification is an important factor in every halal product and is proven by including the halal logo on the product packaging <xref ref-type="bibr" rid="BIBR-15">(Aziz &amp; Chok, 2013)</xref>. It becomes one of the product requirements that will circulate both in domestic and global markets <xref ref-type="bibr" rid="BIBR-46">(Masruroh, 2020)</xref>. Halal certification policies provide a systematic way to increase global competition <xref ref-type="bibr" rid="BIBR-27">(Fischer, 2011)</xref></p><p>In previous research studies, it was described that halal certification can increase market share (<xref ref-type="bibr" rid="BIBR-75">(Wilson &amp; Liu, 2010)</xref>; <xref ref-type="bibr" rid="BIBR-4">(Abdul et al., 2013)</xref>; <xref ref-type="bibr" rid="BIBR-1">(Ab Talib, 2017)</xref>; <xref ref-type="bibr" rid="BIBR-17">(Azmi et al., 2019)</xref>). Thus making it a marketing approach <xref ref-type="bibr" rid="BIBR-73">(Wilson, 2014)</xref>. A halal certification is a tool for economic development in Muslim countries <xref ref-type="bibr" rid="BIBR-21">(Bergeaud-Blackler, 2015)</xref>. Nevertheless, even though it is a Muslim minority country, Thailand can dominate the halal market in Southeast Asia and be the fifth largest halal producer in the world <xref ref-type="bibr" rid="BIBR-49">(Mohd Nawawi et al., 2019)</xref>. With this, Thailand has succeeded in branding itself as a non-Muslim majority country that is recognized for producing certified halal products. Halal standardization is very important in both Muslim-majority and minority countries. Interestingly, the increasing demand for halal products is not only from Muslim consumers (<xref ref-type="bibr" rid="BIBR-75">(Wilson &amp; Liu, 2010)</xref>;<xref ref-type="bibr" rid="BIBR-74">(Wilson, 2012)</xref>). Therefore, this article argues that standardization and halal products are an authority control mechanism amidst the strong demand for the Muslim consumption market.</p></sec><sec><title>LITERATURE REVIEW</title><p>Halal research has attracted the attention of many scholars. From a review of previous studies, several studies have discussed the standardization and certification of halal products. In its application demonstrate the idea that the successful implementation of halal standards depends on the ability of producers to turn external pressures into internal ones <xref ref-type="bibr" rid="BIBR-29">(Giyanti et al., 2020)</xref>. This implementation is possible through government intervention, market demand, and competition intensity (<xref ref-type="bibr" rid="BIBR-3">(Ab Talib et al., 2016)</xref>; <xref ref-type="bibr" rid="BIBR-1">(Ab Talib, 2017)</xref>). From a producer's perspective, halal certification responds to consumer demand growth for halal products <xref ref-type="bibr" rid="BIBR-1">(Ab Talib, 2017)</xref>. Therefore, recently many halal certification studies have talked about market share (<xref ref-type="bibr" rid="BIBR-75">(Wilson &amp; Liu, 2010)</xref>; <xref ref-type="bibr" rid="BIBR-4">(Abdul et al., 2013)</xref>; <xref ref-type="bibr" rid="BIBR-1">(Ab Talib, 2017)</xref>; <xref ref-type="bibr" rid="BIBR-17">(Azmi et al., 2019)</xref>). Halal opportunities offer to expand products and brands, making it a marketing approach <xref ref-type="bibr" rid="BIBR-73">(Wilson, 2014)</xref>. For this reason, <xref ref-type="bibr" rid="BIBR-30">(Giyanti &amp; Indriastiningsih, 2019)</xref> show that the perceived benefits of halal certification influence manufacturers' intentions to carry out halal certification. Then other studies also show that the motive of producers to carry out halal certification is to make a profit (<xref ref-type="bibr" rid="BIBR-71">(Waluyo, 2013)</xref>; <xref ref-type="bibr" rid="BIBR-40">(Kusumastuti &amp; Rachmawati, 2017)</xref>). However, producer participation in halal certification registration still needs to improve <xref ref-type="bibr" rid="BIBR-54">(Naim, 2023)</xref>. Halal certification for producers is considered a cost, thereby increasing production costs <xref ref-type="bibr" rid="BIBR-78">(Zailani et al., 2019)</xref>. Therefore, this article seeks to complete research on the internalization of halal certification in the form of regulatory surveillance of halal products amidst the strong demand for halal consumption.</p></sec><sec><title>METHOD</title><p>The method used in this article is a qualitative approach to literature study (library research). This article's data sources are taken from secondary data, including primary and secondary sources. The primary source is rules and laws related to the standardization and certification of halal products. In comparison, secondary sources are in the form of books, journal articles or conferences, and even various information from the internet, both online news portals and social media. Data was collected using documentation techniques in drawings, writings, or monumental works of a person. The data collection is used to find information and construct it from various sources. Library materials from various reference sources are collected and identified, and then the phenomenon is analyzed using Michel Foucault's perspective.</p><p>In collecting data, the authors carry out the steps in this article by collecting literature related to related topics. The author begins by using legal data as authoritative rules and laws. Then, the information provided in the rules and laws is strengthened by arguments from the results of previous studies that come from accredited or reputable books, journal articles, or conferences. Meanwhile, various information from the internet, both online news portals and social media, are used as supporting material to explain and connect phenomena that occur in halal product certification.</p></sec><sec><title>RESULTS AND DISCUSSION</title><sec><title>Standardization of Halal Products</title><p>Talking about halal products will certainly be related to production and consumption. The state must protect and guarantee the rights of citizens on halal products by the enacting law <xref ref-type="bibr" rid="BIBR-16">(Azizah, 2021)</xref>. Article 1, paragraph (3) of the 1945 Constitution states, “Indonesia shall be a state based on the rule of law”. In this case, it implies that all arrangements in the life of the nation, society, and state are based on applicable law. As a coercive rule, the law protects people’s interests in society. In his book Algemeen Deel, Paul Scholten also said that the law is a command <xref ref-type="bibr" rid="BIBR-64">(Scholten, 1974)</xref>. The implication is that society must comply with applicable laws. Thus, the existence of standardization and certification policies in the Halal Product Assurance Act (UU JPH) is a form of state legislation to regulate and supervise the implementation of production. So, applying this regulation implies that all products entering and circulating in Indonesia must have a halal label.</p><p>Referring to Law no. 8 of 1999 concerning Consumer Protection (abbreviated as UUPK) and Government Regulation no. 69 of 1999 concerning halal labels and food advertisements stipulates that the installation of halal labels on packages must go through inspection from a halal institution. Article 8 paragraph (1) letter (h) of UUPK stated that business actors are prohibited from producing or trading goods or services that do not follow the halal production provisions as stated in the halal statement on the label. In line with article 2 paragraph (1) Government Regulation No. 69 of 1999, every business actor producing packaged food for trade must include a food packaging label. The provisions for the inclusion of a halal label are regulated separately in articles 10 and 11. The statement "halal" is an obligation for production parties who claim their products are halal. The truth of a halal claim is not only proven regarding raw materials, additives, or auxiliary materials used in production. However, it can also be proven in the production process. For this reason, checking the product first with a halal inspection agency before being traded is mandatory. Then, include halal provisions on the product. So with this, halal information becomes an inseparable part of the label.</p><p>Article 1 number 11 of the JPH Law states that a halal label is a sign of the halalness of a product. The inclusion of the halal logo or label on the packaging indicates that the business actor or producer has passed a series of inspections by the Halal Product Assurance Agency (BPJPH) and Halal Examination Agency (LPH) and then has its halal status determined through the fatwa session of the Indonesian Ulema Council (MUI) in the form of a halal certificate. The process includes product that has been inspected by the halal product authority <xref ref-type="bibr" rid="BIBR-25">(Faturohman, 2019)</xref>, which goes through a series of stages starting from the provision of materials, processing, storage, packaging, distribution, sales, and presentation of the product to ensure its halalness. Of course, the guarantee of halal products aims to provide a comfortable and safe feel for the certainty of the availability of halal products and increase the selling value for business actors or producers in producing their products.</p><p>The existence of halal certification proves legal certainty regarding the halalness of a product. A halal certification is a form of state protection from banning a product that is produced <xref ref-type="bibr" rid="BIBR-63">(Sari, 2018)</xref>, as well as explaining certainty and clarity regarding the halalness of a product <xref ref-type="bibr" rid="BIBR-35">(Ilyas, 2017)</xref> <xref ref-type="bibr" rid="BIBR-20">(Bashir, 2019)</xref>. Every product that enters circulates and trades must be halal certified by article 4 of the JPH Law and its derivatives Article 2 paragraph (1) Government Regulation No. 31 of 2019. Business actors or producers are responsible for providing halal labels and maintaining the halalness of their products if they have received halal certification based on Article 25 of the JPH Law.</p><p>Then it is emphasized in Article 38 of the JPH Law that business actors or producers who have received halal certification must include a halal label on their product packaging, certain parts of their products, and certain places on their products. A halal label must be easy to see or read and not easily removed, removed, or tampered with by the provisions of Article 39 of the JPH Law. In addition, business actors or producers must consistently ensure that all stages of production avoid non-halal products, renew the validity period of halal certification when it expires, and report information on changes in the composition of ingredients. Not only do producers ensure, but BPJPH also has a very important role in the surveillance of product halalness. As per the implementing regulations of the JPH Law in Article 77 paragraph (1) No. 31 of 2019, surveillance is carried out on the Halal Inspection Agency (LPH), the validity period of halal certification, product halalness, the inclusion of halal labels, the inclusion of non-halal labels, separation of locations, places and processing equipment, storage, packaging, distribution, sales and the presentation of halal and non-halal products, the existence of halal surveillance, and other activities related to JPH. Surveillance is carried out once in 6 months regularly or at any time.</p><p>Meanwhile, business actors who produce their products with prohibited or forbidden materials are exempt from applying for halal certification and are required to include the statement "non-halal" on their products based on Article 26 of the JPH Law. This article does not mean that in Indonesia, buying and selling products is not permissible. However, there is no need for halal certification, so it is sufficient to include a non-halal label as a picture, sign, or written description <xref ref-type="bibr" rid="BIBR-33">(Hartati, 2019)</xref>. In line with the regulation of the head of the Food and Drug Supervisory Agency (BPOM) No. HK. 03.1.23.06.10.5166 which requires manufacturers to include a sign in the form of the words "contains pork" if the product contains ingredients derived from pigs.</p><table-wrap id="table-1" ignoredToc=""><label>Table 1</label><caption><p>Inclusion of Information on Materials Containing Pork</p></caption><table frame="box" rules="all"><thead><tr><th colspan="1" rowspan="1" style="" align="left" valign="top"><graphic xlink:href="https://journals2.ums.ac.id/jisel/article/download/9449/3524/42654" mimetype="image" mime-subtype="png"><alt-text>Image</alt-text></graphic></th><th colspan="1" rowspan="1" style="" align="left" valign="top">Special marking for products other than drugs containing or originating from pork</th></tr></thead><tbody><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><graphic xlink:href="https://journals2.ums.ac.id/jisel/article/download/9449/3524/42655" mimetype="image" mime-subtype="png"><alt-text>Image</alt-text></graphic></td><td colspan="1" rowspan="1" style="" align="left" valign="top">Special marking for medicinal products containing or originating from pork</td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><graphic xlink:href="https://journals2.ums.ac.id/jisel/article/download/9449/3524/42656" mimetype="image" mime-subtype="png"><alt-text>Image</alt-text></graphic></td><td colspan="1" rowspan="1" style="" align="left" valign="top">Special marking of products that touch certain materials containing or originating from pork in the manufacturing process.</td></tr></tbody></table><table-wrap-foot><p>Source: Head of BPOM Regulation No. 03. 1. 23.06.10.51.66</p></table-wrap-foot></table-wrap><p>If these obligations are violated, business actors receive administrative sanctions as referred to in Article 27 of the JPH Law in the form of written warnings, administrative fines, and revocation of halal certification. The criminal sanctions are expressly contained in article 56 of the JPH Law with a maximum imprisonment of 5 (five) years or a maximum fine of Rp. 2,000,000,000.- (two billion rupiah) if the business actor does not maintain the halal product that has received halal certification. Apart from that, in Article 57 of the JPH Law, to prevent leakage of the confidentiality of formulas contained in the information of business actors or producers, anyone involved in implementing the halal product guarantee process who does not maintain the confidentiality of formulas is subject to imprisonment for a maximum of 2 (two) years or a fine maximum Rp. 2,000,000,000.- (two billion rupiah).</p></sec><sec><title>Internalization of Halal Discourse</title><p>The existence of the issue of halal certification is a reflection of the relationship between religion and the state. Religion cannot be reduced to beliefs and rituals because it has multiple dimensions. Issues of belief and a series of rituals remain an inseparable part of religion. Preferably, religion is understood through the actions and behavior of its adherents <xref ref-type="bibr" rid="BIBR-68">(Suhadi &amp; Muslim, 2022)</xref>. Johnstone (1975) in <xref ref-type="bibr" rid="BIBR-66">(Shafie &amp; Othman, 2006)</xref> “Religion is a system of beliefs and practices by which group of people interprets and responds to what they feel is supernatural and sacred”. Therefore, religion regulates what is permitted and what is prohibited in consumption.</p><p>A product that is consumed must have a halal guarantee, so in this case, it is manifested in the form of halal certification so that producers can put a halal logo or label on the packaging. In response to this, the Indonesian Ulema Council (MUI) established an Institute for the Assessment of Food, Drugs, and Cosmetics (LPPOM MUI) on January 6, 1989, to provide certainty about the halal status of a product <xref ref-type="bibr" rid="BIBR-56">(Nur, 2021)</xref> where halal certification was first initiated by a civil movement supported by the state through LPPOM MUI.</p><p>Finally, in 2014, the JPH Law was issued, the emergence of a halal product guarantee institution with the formation of the Halal Product Guarantee Agency (BPJPH), which was within the structure of the Ministry of Religion, the management of halal certification was fully transferred to the state <xref ref-type="bibr" rid="BIBR-7">(Anwar et al., 2020)</xref>. With the mandate of the JPH Law is mandatory, thus emphasizing the issue of halal and haram in the production chain from business actors to consumers. Enforcement of the JPH Law as a guideline for producers in managing, processing, producing, and marketing products to the consumer community. The benefits of the law allow producers to obtain legal certainty for the goods they produce <xref ref-type="bibr" rid="BIBR-45">(Manan et al., 2016)</xref> <xref ref-type="bibr" rid="BIBR-35">(Ilyas, 2017)</xref> <xref ref-type="bibr" rid="BIBR-56">(Nur, 2021)</xref>. Halal certification has an important role for producers in guaranteeing halal products, including as accountability and increasing trust in consumers; as a marketing tool and enhance the company's image; as well as providing producer benefits to increase production competitiveness (<xref ref-type="bibr" rid="BIBR-6">(Angriyani, 2020)</xref>; <xref ref-type="bibr" rid="BIBR-69">(Suwardi &amp; Billah, 2021)</xref>)</p><p>Product guarantees are in the form of a halal certification mark and a logo attached to the packaging, but sometimes manufacturers must try to get it. The certification process requires a fee to be borne by the producer whose amount is by the product. In this case, halal certification is a tool or strategy for marketing a product. Many manufacturers associate halal certification with production costs, even though it is a marketing cost <xref ref-type="bibr" rid="BIBR-70">(Tjitroresmi &amp; Suhodo, 2014)</xref>. However, to obtain halal certification, producers must go through a long procedure and incur high costs (<xref ref-type="bibr" rid="BIBR-52">(Muslimah, 2012)</xref>; <xref ref-type="bibr" rid="BIBR-60">(Sah, 2018)</xref>; <xref ref-type="bibr" rid="BIBR-47">(Masyhuri &amp; Risdiyanti, 2022)</xref>).</p><p>In its development, the halal concept moves to consumer products and becomes the branding of certain products and services <xref ref-type="bibr" rid="BIBR-27">(Fischer, 2011)</xref>. Manufacturers are realizing the importance of halal certification in expanding the market. As a result, halal certification is the winner in the global market, which has added value to compete with existing competitors with recognition through the halal logo and its certification, producers feel that everyone who consumes the products they make feels protected and is confident to buy them (<xref ref-type="bibr" rid="BIBR-14">(Aziz, 2017)</xref>; <xref ref-type="bibr" rid="BIBR-62">(Salam, 2022)</xref>; <xref ref-type="bibr" rid="BIBR-9">(Arifin &amp; Purnamasari, 2023)</xref>). Directly, halal certification for products implies that the entire process starting from the source of raw materials, production, and distribution is carried out cleanly and hygienically. In this case, halal certification indicates that producers have met strict standards and have undergone rigorous inspections before being granted halal certification <xref ref-type="bibr" rid="BIBR-18">(Badruldin et al., 2012)</xref>.</p><p>The higher the producer's understanding of the halal label, especially in food products, the more guaranteed the halal aspect of a product offered to consumers <xref ref-type="bibr" rid="BIBR-51">(Muhammad, 2009)</xref>. A product will lose consumers in large numbers if there are negative issues about product halalness <xref ref-type="bibr" rid="BIBR-26">(Fischer, 2008)</xref>. Therefore, there is a need for standardization in guiding the production process. The existence of laws governing halal product guarantees is a concrete action by the state in supervising and disciplining the circulation of products in circulation so that the halal label on product packaging can fulfill its meaning.</p><p>The issue of halal products is, of course, public. The existence of comprehensive power and authority is the state’s role to intervene in people's economic life. In this case, the state urges not only to adapt the rules of Islamic law but to fill the void that exists in Islamic law <xref ref-type="bibr" rid="BIBR-11">(Ash-Shadr, 2008)</xref>. The state intervenes in the market through regulation to play an important role as an economic activity, giving birth to labeling and certifying products as halal guarantees.</p><p>Comply with policies, rules, and regulations as a sign of compliance with existing business norms. Compliance with rules and regulations signifies the manufacturer's intention to conduct a legal business and respect the law. In this case, producers seek halal certification to comply with state laws (<xref ref-type="bibr" rid="BIBR-79">(Zailani et al., 2015)</xref>; <xref ref-type="bibr" rid="BIBR-67">(Shofiyah &amp; Qadariyah, 2022)</xref>). The influence of the state binds all individuals to the public interest, which applies universally through its regulations. The state’s role and regulation are the basis of reference to legitimize its enforcement so that its function is to monopolize.</p></sec><sec><title>Producer Discipline as a From of Panopticon</title><p>The concept of the Panopticon was first put forward by an English philosopher named Jeremy Bentham in 1843. The Panopticon uses a prison design that allows one guard to supervise the entire detention room, even if the prisoners do not know whether they are being watched. <xref ref-type="bibr" rid="BIBR-59">(Ramadhan, 2018)</xref>. Later, this concept was developed by Foucault (1975) in his book “Surveiller et Punir: Naissance de la Prison”. Foucault explains that the panopticon concept Bentham previously put forward interprets the power applied to the supervisory function. The important point Foucault quotes from Bentham's theory is that power must be seen visible but could not be verified (unverifiable).</p><p>The monitoring concept of the panopticon system is that power functions automatically <xref ref-type="bibr" rid="BIBR-65">(Schwan &amp; Shapiro, 2011)</xref>. Halal certification is a new style of Panopticon that demands interpretation. Halal certification functions as a panoptic institution because it is the authority that registers, audits, decides, and regulates what is acceptable or not, what is right and wrong, what is by halal standards, and what is not <xref ref-type="bibr" rid="BIBR-77">(Yakin, 2021)</xref>. Halal certification is designed as a doctrine of internalization of power for producers to create compliance monitoring mechanisms in the halal product standardization system. The ability of the halal certification body to see without being seen, allows the implementation of controls to ensure oversight.</p><p>For this reason, every product that enters, circulates, and is traded in Indonesia must be halal certified, as stated in Article 4 of the JPH Law. Then, it was strengthened by implementing regulations for the JPH Law, namely Government Regulation No. 39 of 2021 and Law No. 6 of 2023 on Job Creation. Halal certification is quite present in the form of regulations that link power in everyday life.</p><p>In reality, the JPH Law has yat to be effective in increasing the awareness of business actors for halal certification registration and increasing the availability of halal products in Indonesia <xref ref-type="bibr" rid="BIBR-8">(Anzellyta &amp; Fittria, 2022)</xref>. The legal awareness of business actors or producers still needs to improve <xref ref-type="bibr" rid="BIBR-53">(Nabila, 2023)</xref>. Thus, not all producers provide products, both food and beverages, that are labeled as halal certification. Manufacturers are still biding time to obtain halal certification <xref ref-type="bibr" rid="BIBR-55">(Nukeriana, 2018)</xref>, and most producers even say that even though they have not received halal certification, they are committed to making halal products. Most producers have not applied for halal certification because of the relatively high costs and complicated process (<xref ref-type="bibr" rid="BIBR-52">(Muslimah, 2012)</xref>; <xref ref-type="bibr" rid="BIBR-37">(Khairunnisa et al., 2020)</xref>; <xref ref-type="bibr" rid="BIBR-76">(Wirda &amp; Putra, 2020)</xref>), which are considered burdensome <xref ref-type="bibr" rid="BIBR-44">(Lynarbi et al., 2020)</xref> <xref ref-type="bibr" rid="BIBR-50">(Muhamad, 2020)</xref>.</p><p>One of the government's efforts to help producers with limited funds is the acceleration of halal certification with the Free Halal Certification (SEHATI) program for Micro and Small Enterprises (MSEs). Where the source of these funds as a whole comes from state finances and is assisted by government ministry agencies, this fee waiver is given to business actors who meet the criteria and standards stipulated in Minister of Religion Regulation No. 20 of 2021 concerning halal certification for MSEs. Then, the obligation to be halal-certified for MSE actors is based on a self-statement (self declare) from business actors based on Government Regulation No. 39 of 2021 Article 77 paragraph 1. Meanwhile, the requirements refer to article 79 paragraph 2, which includes: products that are not at risk or use materials that are confirmed to be halal and production processes that are guaranteed to be halal and simple.</p><p>This program is aimed at MSEs so that they can provide relief and convenience in obtaining halal certification for free. However, the provision of free halal certification cannot cover all business actors with limited authority who are legally connected. The free halal certification program at least helps encourage or motivate them to register for certification for their products. Providing free halal certification is an effort by the government to realize its mission of becoming a center for producing halal products in 2024 <xref ref-type="bibr" rid="BIBR-57">(Pamuji, 2022)</xref>. So far, the government has only relied on the Muslim community's size and the high consumption of halal products <xref ref-type="bibr" rid="BIBR-61">(Sakti &amp; Imanullah, 2021)</xref>.</p><p>Producers need halal certification to be able to compete in the global market. The transformation of the halal trade begins with the case of flavoring or MSG Ajinomoto in 2001, which indicated that non-halal ingredients used auxiliary materials in the form of Bacto Soyteno, which contains pork enzymes <xref ref-type="bibr" rid="BIBR-23">(Agama, 2003)</xref>. This scandal has implications for the export and import of products in Indonesia, and its follow-up results in regulations and halal standards that need to be met <xref ref-type="bibr" rid="BIBR-28">(Fischer, 2015)</xref>. The global halal market represents various sectors within and between regulatory agencies and interacting markets.</p><p>Halal certification for products is a marketing strategy to increase sales <xref ref-type="bibr" rid="BIBR-19">(Bakhri, 2020)</xref> <xref ref-type="bibr" rid="BIBR-10">(Armiani et al., 2021)</xref>. In other words, products that are already halal certified have advantages that differentiate these products from other products so that these products get added value and consumer confidence. The large number of imported products circulating in Indonesia requires great effort to obtain halal certification <xref ref-type="bibr" rid="BIBR-22">(Charity, 2017)</xref>. For example, the Korean skincare brand Nacific has succeeded in obtaining halal certification to expand its market in Indonesia <xref ref-type="bibr" rid="BIBR-38">(Kirani, 2022-03-07)</xref>. Samyang noodle from Korea has received halal certification to answer the many non-halal claims <xref ref-type="bibr" rid="BIBR-31">(Gultom, 2022-12-26)</xref>.</p><p>Genki Sushi Indonesia has officially obtained halal certification for the rapidly increasing demand for halal food. Genki Sushi Indonesia is the first restaurant in the world to receive a halal certificate because no restaurant from Genki Sushi has received halal certification since its 32 years of establishment <xref ref-type="bibr" rid="BIBR-34">(Hikmah, 2022-11-16)</xref>. Furthermore, there are claims from RamenYa! that products no pork, no lard, no angciu, no mirin (sweet Japanese) or sake evidenced by the issuance of a halal certificate on November 26, 2022, which is valid in all outlets (LPPOM MUI, 2022c). In addition, halal certification is a commitment from the company to ensure consumers know that what is consumed is safe and halal. Responding with certification is only proof, but the main thing is halal. Producers must maintain the production process with a halal assurance system even though they have received halal certification.</p><p>A halal certification is a form of compliance with applicable regulations, such as local products, namely the Merah Putih vaccine as the first local vaccine product to be halal certified <xref ref-type="bibr" rid="BIBR-12">(Astuti, 2022-03-29)</xref>, Kopi Kenangan (LPPOM MUI, 2022b) and Salad Point (LPPOM MUI, 2022a). Here are binding regulations to run the panopticon system to minimize the potential for fraud. A surveillance system monitors compliance and violations that occur. Regulations limits what is allowed and what is not and make business actors responsible for products in circulation (<xref ref-type="bibr" rid="BIBR-72">(Warto &amp; Arif, 2020)</xref>; <xref ref-type="bibr" rid="BIBR-6">(Angriyani, 2020)</xref>).</p><p>Panoptic power creates conditions for normalizing behavior because of fear of state retribution <xref ref-type="bibr" rid="BIBR-32">(Hardiyanta, 1997)</xref>. The regulations installed in the form of rules need to be revised to capable carry out the panopticon function. The Panopticon functions as if punishment occurs naturally <xref ref-type="bibr" rid="BIBR-58">(Pujileksono, 2017)</xref>. In this case, the Panopticon is intended as a tool to carry out experiments and change behavior. As a result, producers are aware of the importance of halal certification in carrying out their products, as seen from the increase in the number of halal products in circulation.</p><fig id="figure-1" ignoredToc=""><label>Figure 1</label><caption><p>Number of Halal Products</p></caption><p>Source: MUI &amp; BPJPH</p><graphic xlink:href="https://journals2.ums.ac.id/jisel/article/download/9449/3524/42657" mimetype="image" mime-subtype="png"><alt-text>Image</alt-text></graphic></fig><p>Although there has been an increase in the number of halal products, the data above is not proportional to the number of MSEs. Until now, 65,471,134 business units in <xref ref-type="bibr" rid="BIBR-36">(KemenkopUKM, 2019)</xref>, or only 1% of the number, are halal certified. The obligation for circulating products to be halal-certified in Indonesia has yet to come close to panopticism. To some extent, the process encouraged producers to refrain from registering their products to obtain halal certification.</p><p>To date, one of the Spicy Noodle restaurants (Gacoan) has drawn public attention with its status that needs to have halal certification. As a result, on November 17, 2022, Mie Gacoan officially obtained halal certification from the MUI for the raw materials used, including basic ingredients and supporting ingredients to seasonings <xref ref-type="bibr" rid="BIBR-13">(Aswar, 2022-12-03)</xref>. Meanwhile, halal restaurant certification has yet to be registered, halal restaurant claims cannot use raw material certificates. In this case, it does not include restaurant halal certification in direct service to consumers, branches, and menus. The noodles have not received an official halal label issued by BPJPH because the food menu uses names, such as Mie Setan and Mie Setan. Meanwhile, the drinks use the names of Indonesian ghosts <xref ref-type="bibr" rid="BIBR-39">(KOMPAScom, 2022-08-29)</xref>.</p><table-wrap id="table-2" ignoredToc=""><label>Table 2</label><caption><p>Gacoan Noodle Menu List</p></caption><table frame="box" rules="all"><thead><tr><th colspan="1" rowspan="1" style="" align="left" valign="top"><graphic xlink:href="https://journals2.ums.ac.id/jisel/article/download/9449/3524/42658" mimetype="image" mime-subtype="png"><alt-text>Image</alt-text></graphic></th></tr></thead><tbody><tr><td colspan="1" rowspan="1" style="" align="left" valign="top">Before Changing The Name<sup>1</sup></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><graphic xlink:href="https://journals2.ums.ac.id/jisel/article/download/9449/3524/42659" mimetype="image" mime-subtype="png"><alt-text>Image</alt-text></graphic></td></tr><tr><td colspan="1" rowspan="1" style="" align="left" valign="top">After Changing The Name <sup>2</sup></td></tr></tbody></table><table-wrap-foot><p>Source: <sup>1</sup>kompasiana.com and <sup>2</sup>food.detik.com</p></table-wrap-foot></table-wrap><p>It is not about using non-halal materials, but not meeting one of the Halal Assurance System (SJH) criteria, namely the use of a name. The product must not tend to haram products in point 6 of the 11 SJH criteria and are also in line with MUI Fatwa No. 4 of 2003 concerning the use of food names that lead to symbols of disbelief and evil. With this naming, Mie Gacoan can only certify its products for halal certification if it changes its product name. For this reason, Mie Gacoan is known to have changed the name of its menu using children's game names, such as Suit, Hompimpa, Gacoan, Gobak Sodor, Teklek, and others. In addition, Mie Gacoan is also preparing a halal guarantee system within the company.</p><table-wrap id="table-38oilw" ignoredToc=""><label>Figure 2</label><caption><p>Mixue Halal Claim</p></caption><table frame="box" rules="all"><tr><td colspan="1" rowspan="1" style="" align="left" valign="top"><graphic xlink:href="https://journals2.ums.ac.id/jisel/article/download/9449/3524/42660" mimetype="image" mime-subtype="png"><alt-text>Image</alt-text></graphic><list list-type="order"><list-item><p/></list-item></list></td><td colspan="1" rowspan="1" style="" align="left" valign="top"><graphic xlink:href="https://journals2.ums.ac.id/jisel/article/download/9449/3524/42661" mimetype="image" mime-subtype="png"><alt-text>Image</alt-text></graphic><p>(b)</p></td></tr></table><table-wrap-foot><p>Source: (a) (Halalcorner, n.d.) and (b) <xref ref-type="bibr" rid="BIBR-5">(Anaziah, 2023-01-02)</xref></p></table-wrap-foot></table-wrap><p>Following product distribution and trade regulations in Indonesia that require halal certification, Mixue is currently registering for halal certification. However, during the halal certification process, there were findings in the form of halal claims by attaching documents that may have yet to be published during the LPPOM MUI Halal Companion Agency (LPH) audit process. What is fatal is the installation of the Indonesian halal logo at a Mixue outlet in the city of Semarang. As a result, MUI gave Mixue an administrative warning for displaying the halal logo. Installing a halal logo for a product can be done when the process at LPH is complete, then determining whether a product is halal or not is through the MUI fatwa assembly. If you have received a stipulation from the MUI, BPJPH will issue a halal certification. After that, the producer can include the halal label and registration number on the product packaging.</p><p>Finally, the LPPOM MUI website released Mixue’s Halal certification. Mixue has received a halal determination from the MUI and has officially received a Halal Certificate from BPJPH with No. 1D00410001326911122, which is valid in all outlets in Indonesia. Mixue is committed to producing halal products and implementing the Halal Product Assurance System according to the provisions of BPJPH and LPPOM MUI <xref ref-type="bibr" rid="BIBR-48">(Mixueindonesia, 2023-02-17)</xref>. Apart from that, Mixue indirectly fulfills the consumer market’s demand for a product’s halalness.</p><p>The mandatory halal certification will end on October 17, 2024, based on the JPH Law, where the first stage is specifically for food and beverage products; raw material products, food additives, and supporting materials for food and beverage products; and slaughter products and slaughter services. Producers who do not take care of it by the stipulated time limit will be subject to sanctions based on Government Regulation No. 39 of 2021, from written warnings, and administrative fines to withdrawing goods from circulation. For this reason, producers who have not registered for halal certification are required to register their products.</p></sec></sec><sec><title>CONCLUSION</title><p>The state and regulations intervene in the market through the governing rules, thus giving birth to labeling and certifying products as halal guarantees. The JPH Law internalizes that every product that enters, circulates, and is traded in Indonesia must be halal certified. The problem of self-claiming the Halal certification is a problem faced by the authority.</p><p>Halal standardization and certification is a form of representation of compliance with applicable regulations, becoming a panopticon system albeit its process limitation. Halal certification functions as a panoptic institution because it is the authority that registers, audits, decides, and regulates what is acceptable or not, what is right and wrong, what is by halal standards, and what is not. In reality, standardization and halal products have yet to be effective in increasing the awareness of business actors for halal certification registration and increasing the availability of halal products in Indonesia.</p><p>In this article, the authors provide suggestions for further research to compare the role of a policy before and after enforcing the obligation to certify halal products in 2024. 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