ECONOMIC GROWTH AND HALAL MARKET POTENTIAL (STUDY OF UMKM IN MAKASSAR CITY, INDONESIA)

St. Masita Nairul Aulia Putri; Huswatun Hasanah; Tenriwaru Tenriwaru; Hukma Ratu Purnama

St. Masita Nairul Aulia Putri Department Economy, Universitas Muslim Indonesia
Huswatun Hasanah Department Economy, Universitas Muslim Indonesia
Tenriwaru Tenriwaru Department Economy, Universitas Muslim Indonesia
Hukma Ratu Purnama Department Economy, Universitas Muslim Indonesia

Keywords: Halal Industry, Makassar City, MSMEs

Abstract

Results of this research show that the halal market in Makassar City has experienced significant growth in recent years. Based on survey data conducted among micro, small and medium enterprises (MSMEs), around 75% of respondents have started to adopt the halal concept in their products and services. This especially happens in the food and beverage sector, which is the dominant sector in the halal industry in this city. Products with halal certification have proven to be more popular with consumers, especially from the Muslim family segment who are very concerned about the halalness of the products they consume. In addition, a survey of consumers shows that 80% of respondents prefer products labeled halal, even when the product has a slightly higher price than non-halal products. This preference is caused by public awareness of the importance of halal products, not only from a religious perspective, but also from the aspects of quality, health and cleanliness. In terms of business actors, 65% of MSMEs in Makassar stated that they experienced an increase in demand after obtaining halal certification. However, around 30% of MSMEs surveyed still face difficulties in obtaining certification, especially related to costs and long administrative processes.