Awareness of halal certification of micro and small enterprises in Jakarta

Research output: Contribution to journalArticle

Abstract

Demand for halal-certified products is increasing in Indonesia, as the country has a high percentage of Muslim residents. Micro and small enterprises (MSEs) play an important role in Indonesia's economy and contribute significantly to the country's gross domestic product. This study investigates the determinants of MSE's awareness of halal certification, which is increasingly applied in products and gets more attention of the producers, especially those in the food and beverage industry. This research is conducted by using a combination of qualitative and quantitative methods. In-depth interviews (IDI) and focus group discussions are conducted to gain insights concerning the halal certification process, while a survey of 180 MSE owners/employers is conducted to analyze the determinants of their awareness of halal certification. We apply SEM-PLS to analyze the survey results, and the findings reveal that most MSEs are aware of halal certification, while customers and exposure significantly affect MSE's awareness of halal certification.

Original languageEnglish
Pages (from-to)459-471
Number of pages13
JournalInternational Journal of Economics and Management
Volume11
Issue number2 Special Issue
Publication statusPublished - 1 Jan 2017

Keywords

  • Awareness
  • Halal certification
  • Micro and small enterprises

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