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Economic Necessity, Fatwa Authorities, and Halal Awareness: How Mandatory Certification Shapes Producer Practices
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Author(s): Nikmatul Masruroh (Universitas Islam Negeri Kiai Haji Achmad Siddiq Jember, Indonesia)and Muhammad Fauzinudin Faiz (Universitas Islam Negeri Kiai Haji Achmad Siddiq Jember, Indonesia)
Copyright: 2025
Pages: 30
Source title:
Implementing Halal Principles and Regulations in Business Governance
Source Author(s)/Editor(s): Mohammad Nabil Almunawar (Universiti Brunei Darussalam, Brunei), Achmad Ubaedillah (Universitas Islam Negeri Syarif Hidayatullah Jakarta, Indonesia), Euis Amalia (Universitas Islam Negeri Syarif Hidayatullah Jakarta, Indonesia)and Anis Malik Thoha (Universiti Sultan Sharif Ali, Brunei)
DOI: 10.4018/979-8-3373-3917-7.ch001
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Abstract
This study explores the intersection of economic necessity, fatwa authorities, and the construction of halal awareness among producers in the context of Indonesia's mandatory halal certification. Originally voluntary, halal certification is now obligatory for all businesses, particularly in the food sector. The government has introduced two certification pathways: regular halal certification for large-scale, high-risk products and self-declare certification for small and medium enterprises (SMEs) producing low risk goods. However, the implementation of self-declare certification raises concerns about the integrity of halal standards due to insufficient audits and the profit-driven motivations of halal certification bodies. Findings suggest that while mandatory certification enhances the visibility of halal practices, it can also result in a superficial understanding of halal, where compliance is driven more by business necessity than religious commitment.
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