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Decision on Halal Certification of Food and Beverage Products Processed by UMKM Products in Tangerang City - Study of Religiosity, Regulation and Branding

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Decision on Halal Certification of Food and Beverage Products Processed by UMKM Products in Tangerang City - Study of Religiosity, Regulation and Branding Available at http://jurnal.stie-aas.ac.id/index.php/jie Jurnal Ilmiah Ekonomi Islam, 7(02), 2021, 786-797 Decision on Halal Certification of Food and Beverage Products Processed by UMKM Products in Tangerang City - Study of Religiosity, Regulation and Branding Aulia Ramadhan1*), Edy Yusuf Agung Gunanto2) 1,2Fakultas Ekonomika dan Bisnis, Universitas Diponegoro *Email korespondensi: [email protected] Abstract The city of Tangerang with the motto akhlakul karimah and the majority of the population is Muslim, which is 1,587,270 or 88.25%, so it pays great attention to the halalness of the products in circulation. The government requires that every product that enters, circulates, and is traded in the territory of Indonesia must be halal certified, including products of Micro, Small, and Medium Enterprises (MSMEs). There are 11,746 MSMEs in Tangerang City and the leading sectors that can be developed are the service sector and manufacturing industry. This study aims to determine the effect of economic factors, religiosity, socio-culture, regulation, and branding on the decision of MSMEs to carry out halal certification. This study uses primary data with a data collection method in the form of a questionnaire. The population in this study is UMKM which has been halal certified with the facilitation of the Tangerang City Government in 2019. The population is 100 MSMEs and 80 MSMEs are sampled. This study uses multiple linear regression analysis is processed using SPSS version 22. The results of the analysis of this study indicate that the most dominant variable partially has a positive and significant effect on the decision of MSMEs to carry out halal certification is branding. This proves that the halal label can be used as a good image for MSMEs to consumers. The variables that partially have a positive and significant effect on the decision of MSMEs to carry out halal certification, then, are religiosity and regulation. Meanwhile, the socio- culture and economy partially do not affect the decision of MSMEs to carry out halal certification. Simultaneously, the results obtained are that economy, religiosity, socio-culture, regulation, and branding affect the decision of MSMEs to carry out halal certification. Keywords: Economy, religiosity, social culture, regulations, branding, and halal certification Saran sitasi: Ramadhan, A., Gunanto, E. Y. A. (2021). Decision on Halal Certification of Food and Beverage Products Processed by UMKM Products in Tangerang City - Study of Religiosity, Regulation and Branding. Jurnal Ilmiah Ekonomi Islam, 7(02), 786-797. doi: http://dx.doi.org/10.29040/jiei.v7i2.2490 DOI: http://dx.doi.org/10.29040/jiei.v7i2.2490 which means something that is ( اﻹباحة) INTRODUCTION which means .1 Indonesia has a population of more than 237 allowed according to sharia (Ali, 2016). Halal is not million people in 2010. The population on the census only seen from the visible form, but it requires an in- has conducted by the Central Statistics Agency (BPS) depth test on objects that are considered halal to in 2010 showed that the number of people who are confirm whether the content and processing method is Muslim is 87.18% of the total population in Indonesia halal or not. Food and beverages that are currently or 207 million people. Indonesia with the largest produced are processed through a process. Processed Muslim population in the world will certainly food according to Law No. 7 of 1996 concerning Food influence people's consumption behavior towards a said that processed food is food and beverage which product. processed by certain methods with or without Halal is a standard that must require in Islam. additives. الحل Halal in language comes from the root word Jurnal Ilmiah Ekonomi Islam, ISSN: 2477-6157; E-ISSN 2579-6534 Jurnal Ilmiah Ekonomi Islam, 7(02), 2021, 787 The Fiscal Policy Agency (BKF) Ministry of production of food and beverages must ensure the finance (2019) issued a report for the 3rd quarter of halalness of their products. 2019 which said that the manufacturing sector which To find if a product is guaranteed to be halal is by grew by 4.15% year on year from the 3rd quarter of doing the halal certification. Halal certification is a 2018 was dominated by the garment industry at way to determine whether an object is halal or haram 15.1%, food and beverages by 8.33%, and furniture by in the form of a product. Certification is needed to 6.93%. Other industries experienced a contraction, avoid Syubhat. Syubhat is something that not clear such as the transportation equipment industry by - about its halalness and prohibition because many 1.23%, machinery and equipment by -6.7%, and oil people do not know the law. and gas and coal by -0.74%. The food and beverage BPJPH is the party that provides halal industry is in the second-largest position in the growth certification based on the decision to determine halal of the manufacturing industry sector, so care is needed products from the Indonesian Ulema Council (MUI) in the production process to meet community needs which has previously been examined by the Halal and comply with standards. Producers of food and Inspection Agency (LPH). Law Number 33 of 2014 beverage production are not only carried out by Article 4 said that products that entered, circulated, corporations but Micro, Small, and Medium and traded must be halal certified. Halal certification Enterprises (MSMEs) also have a share in the is an obligation that must be required by food and production of food and beverages. beverage producers to produce. Law No. 20 of 2008 explains that MSMEs are Regulations that make halal certification an small companies or owned by a small group of people obligation are one of the reasons food and beverage with a certain amount and income. The criteria for a manufacturers carry out halal certification. In business can be required to be MSMEs or large addition, by carrying out halal certification, producers industries are determined based on assets and will get a halal label in the form of a halal logo to turnover. These criteria are as follows: assign that their products have received halal Table 1. 1 Business Criteria Based on certification. The halal logo is part of the image or Asstets and Turnover branding of food and beverage producers. Criteria Halal branding owned by producers has Size of Asset implications for increasing public confidence in Turnover Business (Excluding land & buying products owned by producers. Hill (in Hanim (Within 1 year) buildings) Yusuf et al., 2016) said that halal products are in high Maximum IDR 50 Maximum IDR demand because Islam is currently the second-largest Micro million 300 million religion in the world. A large market will affect More than IDR 50 More than IDR turnover. Small million – IDR 500 300 million – Decision-making to carry out halal certification million IDR 2,5 billion in Indonesia is also determined by the awareness of More than IDR religion or religiosity from the producers because More than IDR 500 Medium 2,5 billion – Indonesia in the first precept in Pancasila upholds million – IDR 10 billion IDR 50 billion religious values with the sound of "one Godhead." More than IDR 10 More than IDR Rahmat (in Astogini et al., 2011)explains that Large billion 50 billion religiosity is one's appreciation of one's religion which Source: (Ministry of Cooperatives and SMEs), involves symbols, beliefs, values, and behaviors that Processed. are driven by spiritual forces. In 2018 there were 64,194,057 MSMEs in The decision to carry out halal certification for Indonesia and 5,550 large businesses producers is also determined by the socio-culture of (KEMENKOPUKM, 2018). MSMEs have a share of the Indonesian people, which is a country with the 99.9% in the business sector, which means that the largest Muslim population in the world. However, the influence of MSMEs is huge in providing products to population of Indonesia is very diverse in terms of the needs of the community, especially food and culture and religion. Delbert Hawkins (in Nursinta beverage products. MSMEs with a huge portion in the Harmaniar, 2016) says demography is a population based on the number of people in a community, the Jurnal Ilmiah Ekonomi Islam, ISSN: 2477-6157; E-ISSN 2579-6534 Jurnal Ilmiah Ekonomi Islam, 7(02), 2021, 788 structure of society (including gender, income, technique, the number of which was taken was 80 education, and income), and distribution, namely SMEs. The data collection method in this study uses a physical geographic location. Demographics in an questionnaire method with literature studies from area affect social relations, values , and norms journals, the internet, and books. The type of data in adopted by the community in behavior and attitudes, this study is quantitative. The data analysis used was including in making decisions to carry out halal the validity and reliability test, multiple linear certification for processed food and beverage regression, t-test, F test, and coefficient of products. determination (R2). Tangerang City with motto Akhlakul Karimah and based on Law Number 33 of 2014 concerning 3. RESEARCH RESULTS AND DISCUSSION Guarantee of Halal Products, the Tangerang City 3.1. Research Results Government provides halal certification assistance to Respondents Overview MSMEs in Tangerang City to ensure that MSME The following is an overview of respondents products are halal. The leading sectors that can be based on various criteria: developed by MSMEs in Tangerang City are the a. The majority of respondents based on gender are service sector and the processing industry (Susila, female with a total of 59 people or 73.75% of the 2013). In 2018 the number of MSMEs in Tangerang total respondents of 80 people.
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