Stakeholders’ Perspectives on Mandatory Halal Certification for Micro and Small Enterprises in Indonesia’s Food and Beverage Sector

Indonesia's enactment of Halal Law No. 33 of 2014 marks a critical transformation, shifting halal certification from a voluntary to a mandatory requirement for all business actors, including micro and small enterprises (MSEs). While this policy reflects the country’s strong commitment to halal integrity, MSEs often face substantial capacity constraints—financial, administrative, and technical—that hinder compliance. The food and beverage (FnB) sector, prioritized under Government Regulation No. 31 of 2019, faces a 2024 deadline for full certification compliance. Despite the strategic importance of this sector, only around 10% of Indonesia’s 1.6 million FnB MSEs are currently certified or in the process of certification, revealing a significant implementation gap. This study aims to explore stakeholders' perspectives on the implementation of mandatory halal certification for FnB MSEs in Indonesia. It also examines stakeholders’ confidence in achieving the 2024 certification target, investigates the challenges encountered during the process, and proposes actionable strategies based on their insights. Data were collected through in-depth online interviews with representatives from halal authorities, directors of halal centers, halal influencers, and owners of halal-certified businesses. A qualitative content analysis was employed, supported by Atlas.ti and Edrawmind to code, cluster, and visualize emerging themes. The findings reveal that stakeholders generally support the mandatory halal certification policy and recognize its potential to strengthen the national halal assurance system. However, most stakeholders expressed limited confidence in achieving the 2024 certification target, citing challenges that arise both from regulatory authorities and business actors. These challenges are further categorized into fundamental and technical dimensions. On the authority side, budget limitations and pricing policy inconsistencies are frequently mentioned as fundamental barriers, while complicated certification procedures are identified as major technical obstacles. On the business side, low levels of halal awareness and understanding constitute the primary fundamental challenge, and lack of administrative readiness is the key technical constraint. In addition to confirming several existing challenges noted in previous studies, this research uncovers new or underexplored issues as emerging findings. These include differences of perception among regulatory authorities, which cause confusion in certification implementation; fast-changing regulations, which hinder consistency and business preparedness; lack of valid statistical data to support planning and targeting; ingredient substitution difficulties; and concerns over recipe confidentiality among MSEs. These emerging findings highlight systemic gaps in coordination, communication, and policy design that must be addressed for successful implementation. In response, stakeholders proposed strategies structured across time frames. In the short term, massive and continuous public education is considered most urgent. In the medium term, stakeholders emphasized the need for a comprehensive evaluation of existing regulations, particularly concerning self-declaration and supervisory mechanisms. In the long term, establishing an inclusive halal ecosystem tailored to MSEs is viewed as essential for sustainable compliance. This study also introduces emerging strategic proposals, including the creation of a halal certification priority list for high-risk sectors and underserved business groups; simplified GMP standards adapted for MSE capacities; and the inclusion of MSEs in the national halal industry roadmap. These targeted, context-sensitive strategies underscore the need for differentiated policy treatment to ensure equitable inclusion of MSEs in the halal assurance system. This study recommends a comprehensive ecosystem to strengthen the halal certification framework for MSEs. This includes sustainable financial support, inclusive and adaptive regulation, an MSE-friendly certification mechanism, effective and educative law enforcement, continuous technical assistance, and public education. The findings provide practical implications for halal authorities, policymakers, and MSE operators, and offer valuable recommendations for other countries pursuing or planning to implement mandatory halal certification. This research contributes to the body of knowledge by providing sector-specific insights and practical recommendations to support an inclusive, sustainable, and enforceable halal certification system for Indonesia’s FnB MSEs.