full paper-etic repaired) (repaired)1

8/8/2019 Full Paper-Etic Repaired) (Repaired)1

1/22

1

The Demand of Halal (Kosher) Product Certification and Labeling:

Evidence from Indonesia

Umi Karomah Yaumidin

Abstract

Aim of this paper is to measure consumer trust with reference to the entire consumption

experience of Halal (Kosher) foods. Halal food is defined as any foods that are not prohibitedby syariah law. However, the development on food technology creates inovation in food

supplements, food favors, etc. To some extent, this innovation is good for fooddiversification, but it also contain non-Halal ingredient that have to be proven by laboratory

test. Thus, consumer needs guarantee that ensuring them to buy Halal product. One of

indicatoris labeling Halal in packaging food. In thisstudy, we look for relevant aspectsin the

consumption process, related to satisfaction, through a literature review and an exploratory

survey. A list of items is proposed to a sam ple and the scale is evaluated for validity and

reliability with satisfactory results. Overall, the result of thisstudy show that Muslim Banten

has high awareness towards consuming Halal food. This study also found that consumer

satisfaction for Halal foods is higher for product with MUI labeling than that of Halal

labeling with Arabic letters.

Key words; Halal Foods, Consumer behaviour, Halal Labeling, Halal Certification


2/22

2

INTRODUCTION

In marketing strategy, the brand image can be symbolized in various ways such as

com pany logos, trademarks, costumerservices, and Halal labeling. In many literatures, the

feasibilities of products are important to identify the unique of product. On the one hand, the

characteristic of product is one of points for consumer to recognize the product and to

minimize fraudulent practices that are often detrimental consumer. On the other hand, the

development of food technology in the late of 1990s had implied for raising Halal product

industry in advance, since the current foods production had been added some substance that

may contain pork elements and its derivatives.

Indonesia hasbeen acknowledged as a country with largest Moslem population in the world.

However, their understanding about Islamic lesson may differ due to the level of their

education and their experience in life within Moslem community. Banten province is one of

areas which the Moslem ancestorsbroaden Islamic lesson for the first time in Indonesia.As

historic value of Moslem heritages hasbeen maintained well in this region, then Banten also

be called as Santri City. Therefore, this paper has aim to identify how Halal labeling

influence consumptive behavior among Moslem who has given knowledge in the early of

their life.

In Indonesia, the process to get Halal certification is complicated and costly according to

the leader ofsmall and medium enterprises association, even if producers already get Halal

certification form LP-POM MUI (The Assessment of Food, Drugs and Cosmetics Indonesian

Council of Ulama), they will consider to put Halal logo in their product properly. In this

survey, we only concern on how Halal labeling put it in the food product packaging and

restaurant corner. Consumers will more easy to recognize Halal product for processed foods

with packaging rather than raw and fast foods. As Halal certification is only subject to long

syariah procedures, then information has transferred limited to the end consumer due to a

long marketing chain. The main question of this research therefore, how Halal labeling canensure the Moslem consumer? What kind of Halal logo that are more acceptedby consumer?

These issuesbecome more important today. There will be good lesson for general consumer

who has no betterunderstanding about Halal regulation in Islamic law and the process to get

the Halal certification that are currently to be a hot issue in the Indonesia house of


3/22

3

representative agenda to launch a new Halal law. Thus, thisstudy will provide at least the

views and considerations for policy makers, how to Halal regulationsshould be decided.

From Halal Certification to Halal Labeling

Literally, a Halal labeling permits the installation of the word "HALAL " on the packaging

of the product of a company by the POM. Permit the inclusion of Halal label on the

packaging of food products issued by the POM based on the recommendation of the

Indonesian Ulema Council (MUI) in the form of Halal certificate MUI. In Indonesia, talking

about Halal is always associated with certification and labeling. The official institution for

certification is only LP-POM MUI (The Assessment of Food, Drugs and Cosmetics

Indonesian Council of Ulama). Com pare to other country such as United States, the Halal

certification agencies may more than one and can be run by private parties. Therefore,

determination of Halal agency becomes more debatable not only in the level of Indonesias

government but also among Moslem community.

In essence, the general purpose of the enactment of Halal certification is:

"........ To provide assurance of the Halal status of a product, so it can pacify mind

that consume them. Also, for producers of Halal certification will prevent confusionHalal status of products produced (MUI, 2008)".

In formulating the im portance of Halal certification, there are several points of agreementbetween LP-POM MUI and the Ministry of Health, the urgency underlying the imposition of

Halal certification, namely:

1. In order to provide certainty for the adherents of Islam about Halal food and drinks

and whether or not outstanding, very important if the listed label "Halal " on product

packaging food and drinks. For that there needs to be in the implementation of

integrated and harmonious cooperation, especially between the Ministry of Health,

MUI and Ministry of ReligiousAffairs.2. Handling problems related to the Halal food products also with aspects of food safety

that because it were handling both aspectsmust be synchronized and integrated.

3. A food product circulating in the community to be declared Halal only on the basis of

the MUI fatwa after a series of examinations (audits) at the location of the

manufacturer and testing laboratory carefully by LP POM MUI.


4/22

4

4. Halal labeling is labeling permits' Halal "on the packaging of a food product which

is the authority of the Ministry of Health cq. Directorate General of the Assessment

of Food, Drugs and Cosmetics.

5. Permit the inclusion of the label "Halal " on the packaging of a food product issued bythe Ministry of Health cq. Directorate General of Food, Drugs and Cosmetics. This

permission should be based on MUI legal opinion (fatwa) in the formed of Halal

certification.

6. After carefully reviewing the various aspects relating to the handling of Halal in food

products in Indonesia, the meeting participants agreed to propose an alternative

labeling procedure "Halal ".

7. There also agreement that should be more deep discussion to decide a technical nature

for the provision of Halal labeling can be realized.

Procedurally, the Halal certificate issued by the LP-POM MUI should refer to the

principles of Halal products that include of its contents, processing, and storing, as the

following requirements (MUI, 2007):

The content of hismaterial does not contain pork and ingredients derived from

pork, wine and its derivatives. All materials of animal origin must originate

from animalsslaughtered according to Halal Islamic Shari'a way. It does not

contain other ingredients that is forbidden or considered unclean such as:

carrion, blood, the materials derived from human organs, dirt and so forth.Allthe places of storage, retail outlets, processing, where the management and

transportation equipment for Halal products should not be used for pigs or

other illicit goods. If the facility is everused for pigs or other illicit items and

then will be used for Halal products is necessary first to be cleaned in

accordance with the procedures stipulated by Islamic law. The use of

production facilities for Halal and Halal not products turns are not allowed.

Therefore, Halal labeling procedures performed MUI requires a long process, asshown in

Figure 1.


5/22

5

Figure 1 Granting Process Flowchart Halal Certification

Sources: LPPOM, MUI

Planning for Halal (Kosher) certification

Planning for Halal (Kosher) Guarantee

Halal (Kosher) Guidance array and procedural book for operational

Internal audit

and evaluation

Trial and socialization of Halal (Kosher) guidance and

Proposal for Halal (Kosher)

Checking for Halal

(Kosher)

Auditing on site Production

Evaluation

MUI legal Opinion

Halal (Kosher certificate for industries

PRODUCER

LP-POM MUI

Revision

Revision

Not Completed

Revision


6/22

6

After obtaining certification of Halal and Halal labeling, manufacturers still have an

obligation as follows:

1. MUI Halal certificate holder is responsible for maintaining the production of Halal

products.

2. MUI Halal certificate is not transferable.

3. Certificates that have expired, including a copy of it may not be used again for any

purposes.

In accordance with the provisions of the MUI that the Halal certificate validity period is 2

(two) years. To maintain consistency in production during the certificate validity, LPPOM-

MUI provides the provisions for the company as follows (MUI, 2008):

1. Before producers filed Halal certificate must first prepare Halal Assurance System.

2. MUI officially obliged to appoint an internal Halal auditor or a team that is

responsible in ensuring the implementation of kosher production.

3. Obliged to sign a willingness to inspected unannounced by LP POM MUI

4. Make periodic reports every 6 months on the implementation of Halal assurance.

Halal Certificate isissued by the MUI to be a platform for consumers and producers of Halal

products. This warranty will also be accountable before Allah, and not everyone can be giventhismandate. Consequently, the institutions that issued these certificatesmust be received not

only the valid positive legallity but also be capable according to Islamic law. However, there

will hesitate among non-Moslem in determining the Halal -haram because of the non-

recognition capabilities of inspection officers it should not be happen. Allah has said, and

asserted in the holy Quran (Sura 16: 116).

"And say not of anything that was mentioned by a lying tongue, this is Haram Halal."

For the purposes ofinventory and classification, LP POM MUI in 1990 had study food and

alcoholic beverages at various supermarkets in Jakarta and Bogor. This study aims to

determine the types of food and beverage brand products processed using the labels on terms

consistent with provisions of"labeling" the inclusion of the word Halal , and the alcohol

content in beverages.


7/22

7

By using survey method and is equi pped with laboratory analysis, the data obtained are

classified into six groups of food and beverages, which is then analyzed descriptively. The

result ofsuch studies found.

1. Food and beverage products that include the word kosher on the label, there were 166

marks (16.8%). This amount consisted of 150 brands of processed food products and

160 brands of soft drink products. With the concentration range 0.04% - 0.87% of

total results analyzed in laboratories to find as much as 30.76% of soft drinks

containing alcohol. Wine powerful and Malaga wines each containing alcohol of 15.2

and 16.89 per cent.

2. From 988 food and beverage brands surveyed in five supermarkets in Jakarta and

Bogor, the result showed food and beverage products that include food additive 575

brands (58.2%), 615 Ministry of Health license brands (62.2%) and periodic expire as

much as237 marks (24%). For processed food, it found that were included additional

material around 40%, 64.2% products had licensed from the Ministry of Health, but

around 29.8% of products were met expired date.

3. In the processed food products and beverages, the use of Halal labels in the

package found very limited.

The number of products certified by the MUI in Indonesia isstill relatively small, especially

for processed food which are produced by small and medium scale industry. The Halal

Watch NGO stated that "Only 300 products in Jakarta and 12,000 products throughout

Indonesia who have obtained Halal certification. In fact, the number of products related to

Halal can reach millions of number(Pelita, 2009). Meanwhile, data from LP-POM MUI

stating that over 20 years, MUI has issued more than 11,500 of the 80,000 certified kosher

food products, medicines, and cosmetics, chemical, biological and genetic engineering

circulating in Indonesia (Subadi, 2009).

However, there is no standard for the manufacturers to put Halal labeling in their product

packaging. Though, to be able to convince the consumer about the assurance of their product

are produced through Halal procedures, needs high qualify of standardization. Critical

argument on the marketing side, regarding the froms ofuniformity labeling is how it would

benefit not only for manufacturersbut also given confidencility to consumers on guarantee


8/22

8

quality and special specification of a product. As cited statement from LPPOM MUI

(Republika, 2008) that the Halal logo in labeling or packaging of food, medicines and

cosmetics of a uniform is the medium most effective and reliable u p to the community.

Therefore, demand for standardized halal labeling will increase the quality assurance ofproducts to community.

As found the MUI survey, the response of employers to standardize Halal label isquite good.

Many food and beverage entrepreneurs who have a commitment on halal labeling agree that

put it on the product is one of business strategy that must be accountable not only to

consumersbut also to the Creator. However, the next question is there a law against the

legalization of determining whether the reference standard for Halal certification and Halal

product labeling? Thisissue will discussed more in the next section.

Long Journey Bill Halal Product Warranty

During this effort the government and manufacturers to protect people from consuming

products that are not kosher and to support the rights ofinformation consumers to find halal

products hasbeen going well, namely through the Halal Certification from the MUI and by

printing directly koshermark on product labels.

Struggle in compliance with consumer protection to the rights information hasbeen widely

applied in both national and international level. The problem faced is also fundamental as

which hasbeen mentioned earlier, there is no standard reference or clear standards for

institutions that provide halal certification. This requirement is especially im portant for the

development of Halal Assurance System, which is the foundation for the growth of trade in

halal products. Application of halal assurance system carried out in compliance with kosher

manual document, halal standard of procedure documents, halal guidelines, and the World

International Halaland its implementation shows that the concept model that has been

developed suitable foruse asstandardsin preparing halal assurance system. Pity to say that

the advanced rapid development of halal products trade at the international level is not

supported by the Halal Assurance System and strong global halal certification institutions.

They should get ratification frommany countries and need more developed to fulfill the raise

demand on halal product. Today, there are many institutions that were national standardized

yet, and do not have agency auditors.


9/22

9

Currently, as ofin 2001 there only 16 of40 institutions in the U.S that had been recognized

asqualified to give halal certificated by Position Islamic Advancement Malaysia (Jakim), but

MUI only recognized 5 institutions among them. Logical reason of rejection is crucial issue,

regarding the competence and credibility of institutions, for examples it must be deniable ifthe provision of halal certification will only handled by 2 to 3 persons.Asin fact, the process

of granting halal certification course through the procedures and processes that must

guarantee halal products through a series of test constituent materials, which needs not only

long time procesesbut also includesmany participants (Bisnis Indonesia, 2009).

The role of the LP-POM MUI in this case, is the only one authority and nationally recognized

for audit and certification of halal (after going through MUI legal opinion) is not only limited

to the provision of halal certification for the product issued by Indonesian producers.

Nevertheless, LPPOM MUI also holds instrumental in providing recommendations to the

kosher certification agencies abroad. Until now, LPPOM MUI issued 39 foreign halal

certification agency recommended them in Australia (11), New Zealand (3), United States

(8), Netherlands (3), and Ireland (4). Meanwhile, in Singapore, Malaysia, Thailand,

Philippines, and Japan each institution that hasbeen recommended (Bisnis Indonesia, 2009).

MUI is particularly hold im portant role to keep the non-occurrence of crushing consumer

confidence in the credibility and capability of halal certification agencies. They also have an

important role to bridging encouragement due to the complicate halal process that may have

been faced by manufacturers and business. That is, if the halal certification of halal

certification institution from one country often rejected by other state institutions halal

certification, halal certification bodies that are believed importing country must conduct re-

certification. This leads to inefficiencies for all parties.

Therefore, to get high assurance of halal systemshould be su pported with law enforcement.

The Indonesia regulations that enclose halal product is Law No. 7/1996 on Food,

Government Regulation No. 69/1999 on Food Labeling and Advertising, and Law No. 8/

1999 on Consumer Protection, has clearly set the way the inclusion of the (writing) following

lawful sanctions clear legal. However, when we back to earlier period, the legislation of halal

products in Indonesia was not new idea, as it was already set up in the early 1970s. For

instance, Ministry of Health regulation No 280/Menkes/Per/XI/1976, article 2 has set the

distribution and labeling of foods containing ingredients from pork. In short, the container or


10/22

10

wrap foods containing pork ingredients must be included warnings from pig picture or

writing CONTAIN PORK red. Similarly, Minister of ReligiousAffairs and the Minister of

Health, No. 68/1985 and No. 427/Menkes/SKB/VII/1985 chapters 1, 2, and 4 also control

this. Article 2 states that the words halal manufacturer on the label or labeling of foodproducts is responsible for the halal food is for adherents of Islam. Article 4, carried out

preventive surveillance DG POM elementsinclude the Ministry of ReligiousAffairs, and for

the supervision carried out by the Ministry of Health.

In Law No. 7 of 1996 concerning halal food to enter the term primarily in articles advertising

and labels. In chapter30, 34, and 35 to conclude an article that requires each food packaging

products that are traded in Indonesia must include a label on, in and or on food packaging1.

There are bumps in the food laws that affect trade significantly for packaging food products

labeled halal. In article 30 paragraph 2 clearly states that "information about halal food

products such inclusion on the new food label is a liability when the manufacturer or

importer stating that the food in question is lawful for Moslems".

In the meantime, implementing the law, is must be supported by under level of regulations

such as Government Regulation No. 69 of 1999. In article 10 paragraph 1 of this regulation

states that "any person who produces or enter the food is packed into the territory of

Indonesia to be traded, which states that food is halal for mankind, is responsible for the

correctness of the statement must include a description or word kosher on the label ".

Therefore, according to the law, the halal food it does not a responsibility of the

manufacturers and Ulema, but also government. However, the truth of the way

manufacturers put in halal labeling on their product and assuring its correctness of the

statement is fully in charged of the producers. In addition, the manufacturers itself are not

strong enough to ensure the consumer as there is no standardizing on halal logo in particular.

Thus, food legislation is not strong enough to promote the establishment of trade in halal

products masive. Direct implication of the existence of these laws was the emergence of

various types of halal logo or labeling, such as those on show in the figure 2.


11/22

11

Arabic halal logo MUI halal logo with certification number

Uniform halal logo MUI halal logo without certification number

Figure 2 Various Halal Logo listed in Food and Beverage Packaging Products

Source: Variousmedia from the internet

For consumer, the confussion of logo is not only permissible but also affect the intensity of

interest to buy the product. The baffle of Law No. 7/1996 on Food with government

regulation No. 69 /1999 on Food Labeling and Advertising need to be revised. Government

regulations should be revised to conform to existing legal umbrella. Likewise, the relevant

technical regulations issued by the Minister. Regulation of the Minister has to be fixed and

refers to legislation that already existence. Therefore, there is a rule that can be ''forced'' to

businesses ''halal'' labeling on products that release, especially for food products that are not

in the packaging.

Discourse on Law Halal Product Warranty does not need to be addressed too long and

rambling. For every Moslem are enough of God's law governing halal and the prohibition of

food. Therefore, should be no positive law that helped set it. The objection of this kind

emerged from among the Moslems and non -Moslems who are more focused on international

trade. To those obligations, halal labeling can be categorized as"trade barriers" that would

threaten the smooth flows of production and national economy. On the other hand, there are


12/22

12

opinions, why not prove the unlawful course, for the lawful amount greater than the unlawful.

Therefore, the proof will be more efficient if illicit goods are tested, and the test load is

transferred to parties who claim that the goods are Haram. A little wiser, most Moslem

societies agree that the Act should be applied Halal Product Warranty but not in spirit asmandatory or pressing to employers to conduct mandatory halal labeling. Halal labeling

should be voluntaryin nature as the current system.

In the formulation of the law kosher impressed conflict of interestsbetween the MUI and

Ministry of ReligiousAffairs2. The spirit to require labeling to the producer of kosher food,

medicines and cosmetics seems so commercial. If the element of commercialization that

stand out, why not appoint a professional institution that apart from members of the

government.Assuch, the validation certificate issued more reliable.

Back to the perception of consumers toward products labeled as halal. It is true that kosher

label that issued by MUI more provides serenity, certainty and guarantee satisfaction to

consumers, but there are many Moslems still believe others kosher logo. In regard, the

conflict ofinterest among member of parliamentary discussion on deciding bill kosher to be

law koshershould be done in respect to the consumer rather than who institution will take

benefit from this law. If only managerial as matter, the house of representative and other

relevantorganizations can test the fit and proper between LP-POM MUI and Ministry of

Religius Affairs. It will be more useful for consumer satisfaction to the institution of halal

certification work well and following the rule ofsyariah law.

Consumer Perceptions on Halal Labeling

Essentially a management system that is applied in securing something, such as quality or

kosherin principle the same.3

But differs with the quality of which is the human consensus

in defining quality of a product, the problem of halal, its requirements set by the Almighty

and then through the scholars and scientists provision was interpreted in our daily lives. In

addition, mentioning that product is haram has an im pact farmore devastating than the

impact ofmismatchesquality of a product. Therefore, in implementing management systems

to ensure halalness a product should be as perfect as possible, so that the halal status of

products produced is assured at all times (Apriyantono et al; 2003).


13/22

13

In part, this paper will review the assessment and consumer attitudesin the Banten province,

focused products labeling. There are three items to be tested is label, i.e halal label bearing

the MUI, the Ministry of Health and the halal label that written in Arabic letters.

Public perception of consuming products with halal logo, are based on several specific values

embraced by the local community. In the development theories ofbeliefs that influence

consumption behavior, consumer perception theory can be grouped into the Theory of

Reasoned Action (see Ajzen, 1991). The following theory is abstracted from the Yi (1989),

regarding the development of the theory of consumerbehavior. Starting from Howard and

Sheth (1969) who stated that behavioris a significant variable that can explain and predict a

variety of consumerbehavior toward a number of choicesin food consumption. Initially, the

study of consumerbehavior developed through mathematical calculations associate with the

expected value as developed by the Rosenbergs's Instrumentally-Value model (1956) and

Edwards' subjective Expected Utility model (1954). However, there are limitations in the

model, especially in explaining critical elements that builds consumerbehavioritself.Among

these weaknesses are not considered: (a) the intention or desire as a precursor variable

behavior(behavioral intention as a precursor to behavior), (b) the importance ofbeliefs held

by society (the importance of socially-based beliefs), and the potential importance of

socially-based beliefs (expectations) about the attitude object. Fishbein (1967) introduces

model evaluation conviction orbelief for the first time. Then, it was elaborated by Fishbeinand Ajzen in 1975. Afterward, this theory isbelieved can answers all the weaknesses of

previous theories.

Based on the result of our survey, many respondents state that they will get a negative

assessment from their family, community, government and ulema if they do not consume a

halal food. It can be seen from the scoring level most of respondents give a high enough

score for the negative rating on variable they received from family if they do not eat halal

food (6.25). Meanwhile, negative valuation obtained from the government is the lowest (4.66).

This occursbecause there is no law enforcementfor the community to mandatory halal foods.

It can be concluded that the intentionality of Moslemin Banten for consuming halal food, is

still limited to the feelings ofshame or fear ostracized by family or relatives.

Further analysis is to see how Banteneess people belief can affect their behavior in

consuming halal food with MUI label toward the level ofintensity of their consumptions. In


14/22

14

figure 3, it can be seen that the higher the level of consumer confidence on food products

with halal MUI logo, the higher the level of theirintensity to consume the product. Nearly 54

percent of consumers, who have a very high level of trust to the products, alwaysspend their

revenue for those products (91.1 percent). While the rest of respondents mention that eventheir trust the halalness of product with halal MUI logo, they might not frequently to consume

that product, but at least they have an experience to try to consume for once in a year (see

appendix 1).

Figure 3 Correlation between Consumer Trust on Halal MUI Logo Toward Their Intensity to

Consume Its ProductSource: Primary Data processed, 2009

These results are only obtained fromsubjective assessment of respondents to the values that

they embraced, and their perceptions the people around them if they do not eat halal food.

Some of those who said that the halal food is not so important because making food from

subhat to be halal are easy. If the consumer does not know the substance and process of

manufacture of halal food, during their eating, they just enough to read basmallah, then, food

became lawful for him. Such a claimissubmitted by the local leadership Council of Majelis

Ulama based on their claim that such knowledge is obtained from their experience lesson onIslam from their teacher at the time when they were a child. It proves that there is lack of

socialization to promote good understanding of halal-haram food associate with technological

development in the field of food. For the religious leaders of Banten, all the food that other

than those proscribed in the Qur'an is kosher. Therefore, the material halal food product is

often missed as the material they preach. Proselytizing material delivered more devoted to


15/22

15

ritual and muamalah (application of Islamic teachings). Propaganda material delivered

through assemblies taklim or religious elementary education and upper secondary level

more fundamental to the jurisprudence ofmaterial such as prayer, reciting Quran, fasting and

so on. While the development of food products containing these elements in the tangentsubhat rarely to be tought, even maybe not. Thisis normal and may frequently occurin most

parts of Indonesia. Therefore, the role of independent institutionssuch as NGOs, working in

the socialization of halal products, as well as foundations Indonesian consumer agenciesmust

partici pate actively in the process of teaching the public about prudence in selecting food

products.

Perceptions of Government and the Independent Institute of Halal Products

A part from the community, this study also explored the perception of government in this

context the Ministry of Health and the Department of Religious and Independent agencies

such as the MUI and YLKI. From the health side, technically halal labeling regulated in

Decree of the Minister of Health No: 82/Menkes/SK / I/1996. In attachment the decree

which is in Chapter V of Hygiene Requirements for Processing has been described as

standard rules in the process of making kosher food and hygiene requirements for food

processing according to Islamic law.

Minister of Health also issued Decree No 924

/Menkes/SK/VIII/1996 concerning amendmentsto the Decree of the Minister of Health No.82/Menkes/SK/I/1996 about ''writing'' on Halal

label. It hasbeen mentioned in article 8 of the producer orimporter which will apply for the

inclusion of writing''halal''must be ready examinedby the joint team officer of the Indonesian

Ulema Council and the Directorate General of Food and Drug Administration under the

Ministry of Health. The rules is clear the issue of halal which is also regulated in the

operational guidance. However, to ensure these rules to be realized isstill big quesrton to be

solved and proved. Our result founds that the local officers from Ministrial of health were not

ready to implement this regulations.According to them, although they have a routine activity

in guiding and socialization programs to small businesses, especially food and beverage

operations in the schools area, but they are rarely to guiding student or consumer to choose

healthy foods which are freely from toxic materials and harmful body. In fact, health

workers in Serang find many traders, especially small traders who break the rules on food

additives added to the product wares, merchants called it a "starter." Commonly used


16/22

16

addictive substancessuch as the use of dye clothing to food coloring, formalin, borax and so

on that could endanger health.

Although, the scheduled activities are carried out by health workers, but the budget problemis

one of the obstacle, for example in 2009, they said: ".... In 2009, we experienced significant

cuts in funding, due to more government budget devoted to election success. In this deal end

activities related to health education which is usually routinely done in schools and street

vendors can not be forced budgeted..."

Thus, socialization activities and inspection of food circulating in the community, especially

for processed food and instant food are very influenced by the initiative of officers.

Meanwhile, on the demand side for small-scale producers to make quality tests on their

products are still minimal. Though relatively cheap on laboratory testing i.e Rp 60,000 - Rp

150,000 (equal to USD 6 15), but for SMEs it is quite expensive. Only those companies

who wish to obtain certification from the Ministry of Health with the MD code that would

perform the test.

Besides the Ministry of Health, Ministry of Religious Affairs also has contributed

significantly to the implementation of the quality assurance of halal food, beverages,

medicines and cosmetics. From the results of interviews with the Head of Islamic Affairs

Banten province, the problem of the development of halal products is still a long debate

between who fact that the institution has the authority in determining the granting of

certificates and halal labeling. There are two institutions which have com petency on this

duty, is this duty will goes to the Ministry of Religious Affairs or the Indonesian Ulema

Council. This debate is also causes unresolved decision to launch the bill Halal Product

Warranty to be the halal product Warranty Act.

Our research also showed that there is no mutual cooperation among the local government

which are represented by community of Banten, showed no synergic cooperation between

the Ministry of Health, and Ministerial of Religious Affairs, with the Indonesian Ulema

Council (MUI). In many activities organized by the Ministry of Religion for example

relating to certification and labeling of halal products, the agency office of ministrial of

health and MUI are often not involved either deliberately or not. Ideally, these three

institutionsshould capable of creating harmony in creating a strong security system of halal


17/22

17

products. The legislature hasbeen quite strong as stipulated in the charter of cooperation

between the Ministry of Health, Ministry of Religious Affairs and the Indonesia Council of

Ulama on the implementation of food labeling kosher on June 21, 1996. In the agreement

stated that:

"...... Food and beverage products in circulation can be declared kosher only on the basis of

Indonesian Ulama Fatwa Council, after a series of examinations (audits) at the location of

the manufacturer and testing laboratory carefully. The implementation of such labeling

kosher further regulated by the Ministry of Health which is based on the joint between the

Ministry of Health, Department of Religion and the Indonesian Ulema Council

For the Indonesian Ulema Council of Banten province, the research team had difficulty in

digging more information about the development of halal certification and product labeling.

However, based on information from the community, the Indonesian Ulema Council Banten

region has no authority to do and decide fatwa on certification and labeling of halal. His

argument is they have not sufficient auditors, and laboratotium proper testing, the process has

been the domain of tasks and authority of central LPPOM MUI. However, the MUI's role not

just as agencies fatwa, but they should pretty aggressive to promote and disseminate any

information and regulation regularly in regard to halal isuse such as given by the MUI region

ofEast Java Province. In addition, they also should distribute brochures and include halal as

propaganda materials. Thissocialization can be done by creating a movement of love of halal

products. The event was first initiated through the Halal Fairin 2007, and important eventsin

the activity of Islamic agenda such as Idul Fitri, Idul Adha, the celebration of the tradition of

the Prophet Muhammed birthday, and so forth.

Other independent institution that also plays an im portant role in the socialization of halal

products is YLKI (Yayasan Perlindungan Konsumen Indonesia Indonesia Consumer

protection). Based on the narrative chairman, YLKI Banten has not received complaints

about the artificiality of the goods was unlawful. It never happened in the community

complain that there are some entrepreneurs "meatballs" that uses rat meat (forbidden food) as

itsmain ingredient. However, thisincident is not necessary until the judicial process, is taken

over by the Health Department to conduct coaching and reprimand, the problem can be

solved.


18/22

18

Turning to the security halal certification and labeling, halal label on the food package is one

of factors that had influence consumer to decide buy or not of the product particularly in

regard to the trademark notice, period expired, and the content of food. Figure 4shows the

proportion of consumers that places the importance of food labelssuch as halal labelin Arabicletters and halal label bearing MUI. Of the 100 respondentsin the area of Banten, more than

50 percent stated that the MD code, halal label MUI and halal label in Arabic letters are

im portant for them to have enough information to consume that food. However, deeper

analysis comes with result that consumer end to pay more attention and consider the halal

label MUI to select products kosher, followed by MD code and the subsequent letterbearing

the kosher label in Arabics letter. In a row, that value is about 85 percent, 77 percent and 70

percent. The reason is the halal label bearing with MUI have through a long process and

procedures which validated by MUI. Thus, this label give more guarantee not only safeness

but also lawful to consume. Furthermore, there is also high demand to create such condition

and maintain it properly with or without legal formalities. In other words, consumer have

their own choice to consume a food based on their taste, belief and attitude which should not

be regulated under the ordinance. Therefore, the resultsof this study had strengthen the

hypothesis that the difference in the consideration of consumer choice to eat halal products

based on specific labeling which tend to close with their purchasing power parity, normative

value and beliefs.

In addition, consumers also recognize food with high level of product safety assurance which

correlate to the level of price. In this context, it is more likely be able to overcome the

psychological considerations rather than that of economic considerations. This, among

others, appears from the willingness of consumers to pay higher for products labeled halal

MUI. By simply analysis of rank correlation, it shows that consumer willingness to pay the

difference between products labeled kosher higher than products not labeled kosher very

significantly correlated with the level of consumer confidence for products labeled kosher

MUI (-0274) and quality of products labeled kosher MUI (-0333 ) with a significance level of99 percent. However, the correlation is negative correlation, meaning that the smaller the

difference in prices paid by consumers, the higher the level of consumer confidence for

products labeled kosher MUI.


19/22

19

Fig re ProportionofCon er inCon idering LabelsonFood Packaging Prod cts

So rce: Pri arydata, processed, 009

Ret

ilers Percepti

of HalalProductCertification andlabeling

Infactt ere areexamplesofbehaviorthatisexemplaryofa managersupermarketonhisown

initiative has been trying topromoteproducts labeled kosher, not only from the M I, but

from all over the world The action of the manager is reali ed by installing banners,

billboards banners anddistributingleafletsto consumersor customerstopay attentiontothe

kosher label in eachpackproducts are bought in addition to theperiod expired ven with

out own fund, the manager of the supermarket owners permission, perform cooking

demonstrations to mothers and school students. Thepurpose of this activity is toprovide

guidance andencourage consumerstopay attentiontothe materialsusedinthe manufacture

ofthe crackers aretestedhalalguarantee. Such asproviding knowledgeofhowtodistinguish

between kosher margarine with other margarine, that contains elements such as lard.

Knowledge is disseminated through the understanding of the composition of the materials

included in thepackagingoffoodproducts. Oneofthe modelsthatshould befollowed, not

onlyprovide education to the community but side effects are manypeople who choose to

6

64

16

926

77

8570

1

10

100

Rendah

Menengah

Tinggi

Minis

y of He

ic Le

e sMUI Logo

Low

High

Mode

e


20/22

20

shop at supermarketsbecause it was getting satisfaction with the guarantee halal products

bought.

Interesting lessons that can be inferred from this event is to persuade the public become more

vigilant and cautious in the food consumed, not only the duty of the Ulema. However, all

Muslims must bring the mission to develop and disseminate the principles of halal-haram,

especially in product food.

CONCLUDING REMARKS

Banten community has the attitude and normative valuesbased on strong Islamic law. The

realization of these values is not only manifested in the ritual worship since they were born,

but also manifested as a whole, especially in their consumption behavior. Based on research

finding, it was indicated that Moslem in Banten still believe kosher labeling on packaged

food products and restaurants. Labeling halal using MUI logo ismore guarantees to assurance

the halalnes of product than other halal labeling such as label halal in arabis letters.

In addition, the movement of Banten society to endorse halal issuesisstarted from grassroot.

The branch of MUI Banten in the province and municipal level is tend to less active to spread

out halal issue in their program. It seems that lack of coordination between the Ministry of

Health, Ministry of ReligiousAffairs and the MUI itself does not diminish consumer choicesto consume products halal label with MUI logo. Shades of the debate between the MUI by

the Ministry of Religious Affairs in making an agreement on the audit authority and giving

fatwas and permission halal certification and labeling is also felt at the local level.

The procedures and the process of obtaining certification consequential long enough on a

high cost, thusmaking small and mediumbusinesses were reluctant to register their products.

This was also true for the acquisition of health permit from the Ministry of Health and the

procedure is instant low cost. Thus, the necessary steps more efficient in providing

certification of halal products. Moreover, it issuggested that Forsmall and mediumbusiness

should be given incentive to provide halal certification in the industry group that is usually

organized through the forums and regional SMEs industries. This alternative not only

provides assurance of halal products for consumersbut also help the development of halal

businesses worldwide. In addition, realizinga comprehensive security system lawful, valid


21/22

21

and accurate to the readiness and willingnessshould eliminate egocentric relevant agencies

and institutions work togetherin synergic and mutual benefit.

At national level, halal issue become hot discussion among the House of Representatif

member to assemble bill guarantee halal products into law. However, this law needs to be

reviewed, the spirit that must be developed of course how to create a comprehensive

protection for consumers than the element of commercialization and conflicts between

agencies. The system may be an answer to the market, so there is no institution that

monopoly in the provision of certification and permit labeling halal. So let the market

(consumers) to ratify the credibility of these institutions.


22/22

22

References

Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human

Decision Processes, 50, p. 179-211. Di akses dariValue Based jmanagement. Net

Apriyantono A, Hermanianto J, dan Nurwahid. (2003). Pedoman Produksi Halal.

Departemen Agama Republik Indonesia.

Arvan Pradiansyah, (1999), Peranan Kepemimpinan dalam Membangun Kepercayaan di

Tempat Kerja , Usahawan , No. 19 th. XXVIII September, hal.23 25.

Badan Standarisasi Nasional. (2000). Standar Nasional Indonesia (S NI) 19-9001-2001.

Sistem Manajemen Mutu Persyaratan. Jakarta: Badan Standarisasi Nasional.

Bisnis Indonesia, (2009) Menyoal Standard Halal Internasional, dimuat tanggal 7 mei2009,

Jakarta

Girindra, Aisjah (2008). Dari Sertifikasi Menuju Labelisasi Halal , LPPOM MUI, PustakaJurnal Halal .

Masykur, (2007). Dari Islam Tradisionalis ke Revivalis: Perpindahan Orang NU ke HTI di

Serang Banten, tanggal 29 Oktober2009,.

Perdana, Arie (2006). Keshalehan Ritual Tidak Menunjang Pertumbuhan Ekonomi, Indo

Pos, 6 Agustus2006.

Qhardawi, Yusuf (2009). Halal dan Haram Dalam Islam, Electronic Book, di akses tanggal29 Oktober2009.

------------------.(2006). Indonesia International Halal Exhibition - Halal Indonesia 2006, 7 -

29 April 2006, Jakarta.Malaysian Science and Technology Information Centre Portal.

http://www.mastic.gov.my/servlets/sfs

Republika, (2009) MUI Harap Menag Bersikap Bijak terkait Jaminan Produk Halal (Kosher),

dimuat dalam Republika 26 Oktober 2009, diakses tanggal 12 November 2009

http://www.republika.co.id/berita/84871/MUI_Harap_Menag_Bersikap_Bijak_terkait_Ja

minan_Produk_Halal (Kosher).

Sutjipto, (2009) Merk dan Logo Halal (Kosher), Jumat, 30. January 2009, 07:34:46 diakses

tanggal 11 Oktober 2009, http://my.opera.com/JurHal/blog/2009/01/30/merk-dan-logo-

Halal (Kosher).

Subadi (2009) Mengkritisi RUU Jaminan Produk Halal (Kosher), dimuat dalamWawasan,

Rabu, 05 Agustus 2009, diakses tanggal 19 Oktober 2009

http://www.wawasandigital.com/index

.php?option=com_content&task=view&id=32340&Itemid=62

Yi, Y, (1989), Acritical Review of Customer Satisfaction , in Zeithaml, VA (Eds), Review

of Marketing, American Marketing Association, Chicago.IL, hal 68 123.

full paper-etic repaired) (repaired)1

Documents