The Obligation of Halal Certification: Between Affirmation of Religious Identity and a New Business Competition Strategy Model Amid the Threat of a Recession

Abstract

Recently, companies and SMEs have begun to carry out halal certification in droves. Especially in 2024, businesses in the culinary field are required to have halal certification, both on a large and small scale. This is certainly a challenge for business owners who so far still interpret halal as merely a religious identity. Whereas in business competition, halal certification is an absolute obligation in order to gain wider market penetration. So this research aims to; firstly analyzing the halal certification process that has been running in Indonesia so far; the second traces the ability of halal certification to become a strategic model in winning the market amid the threat of recession. Both of these objectives are examined using a qualitative approach to the type of case study research. Researchers will present several cases that occurred in international companies and SMEs. Data collection techniques using observation, in-depth interviews, documentation and Small Group Discussion. Data were analyzed using descriptive and interpretive. The results of the study stated that, first, the certification carried out was still at the level of compliance of business actors with the state, not yet at the level of confirmation of religious identity, secondly, halal certification was able to become a barrier to entry for business competitors, so that business actors who had halal certification would be able to win the market, especially amid the threat of recession.