System of Halal Governance and Aspects that Influence Halal Policy and Awareness in Indonesia

Abstract

Halal means permissible in Islam – prepared according to certain parameters of Islamic Law. (Fuad Mohd, 2019). This does not only apply to meat and poultry, but also to food products, beverages, cosmetics, and other personal care products (Sukoso, 2020). According to Nusran and Mohd Azemi (2021), Halal is a value system and lifestyle adopted by Muslims who make up almost 25% of the global population. Halal applies to all aspects of life, both products and services. This paper aims to see how Halal governance is carried out from several aspects in Indonesia, including the time required for the Halal certification process. So far the halal industry has grown far beyond the food sector, further expanding the potential of the halal economy. With a growing consumer base, and increasing growth in various parts of the world, this industry will become a competitive force in world international trade. (Mohd Fuad Mohd Salleh,2019) further with 1.8 billion Muslims, their expenditure is estimated to reach US$2.1 trillion in 2017 (State of the Global Islamic Economy Report 2018/19' by Thomson Reuters, in collaboration with Dinar Standard). According to Nusran (2018), the current national awareness of Halal Certificate has not experienced a significant development. The stagnation that occurs in the ratification of halal assurance rules in Indonesia requires a national awareness movement so that the Indonesian people can immediately receive protection from the government for the fulfillment of their rights as citizens, with a focus on halal regulations for food, medicine and cosmetics. In the framework of implementing the Law on Halal Product Assurance, the purpose of implementing Halal Product Guarantee No. 33 of 2014 is to provide comfort, security, safety, and certainty of the availability of halal products for those who consume and increase value added for business actors to produce or sell products. Article 4 of the Law on Halal Product Assurance states that products that enter and circulate and are traded in the territory of Indonesia must be certified halal. Thus, the role of Halal Product Industry Development is to increase the growth and development of the halal product industry which significantly affects Indonesia's economic growth, encourages the formation of a strong halal product economic structure and as a guide for the community in building the halal product industry. The conclusion of this paper is that halal governance in Indonesia still requires coordination and harmonization of the various parties involved, including the time required for the halal certification process to begin when producers register their products with BPJPH to obtain a halal certificate label with a validity period of 4 years