Production Aspect as the Most Important Factor in the Development of Halal Small and Medium Industries (SMIs)

Abstract

The development of the number of SMIs has not been able to encourage the increase of halal SMIs, as indicated that of 14,282 business units in 2018, only 426 (3%) of the SMIs products in Cirebon District had halal certificates. This study aims to determine the policy priorities that can be taken by the Government in the context of developing halal SMIs. This was a qualitative study. The data collection method used here was Focus Group Discussion (FGD) with a total of 10 respondents from the SMIs business actors and Regional Apparatus Organization (RAO) related to the development of SMIs. Data analysis used hierarchical analysis, with the aim of solving complex problems by structuring a hierarchy of criteria in order to develop weights or priorities. The results showed that in a hierarchical sequence, production aspect(availability of raw materials and tools and machinery) was the first priority (25.79), then it was followed by HR aspect (24.94), market and marketing aspect (22.84) in an effort to improve the competitiveness of Halal SMIs. There is a need to increase good and sustainable synergy between SMIs and Local Governments in the context of achieving Halal District.