Strategies for Increasing the Legal Awareness of East Java Business

Owners and People to Accelerate the Success of Indonesian Halal

Products in the Global Market

KHUSNIATI ROFIAH1, SRI LUMATUS SA’ADAH2, MARTHA ERI SAFIRA1, RIF’AH

ROIHANAH1, MOCH. CHOTIB2, 3MELA ISMELINA FARMA RAHAYU

Institut Agama Islam Negeri Ponorogo

Jalan Puspita Jaya, Krajan, Pintu, Jenangan District, Ponorogo Regency, East Java Province, 63492

Abstract: - With its diverse nature and supported by thousands of delicious foods and beverages, East Java

Province, Indonesia has the potential to be promoted as a center of tourism and culture. The East Java Governor

targets all food products to have halal certification by 2024. Therefore, the East Java government targets that 1.5

million Micro, Small, and Medium enterprises (MSMEs) must have halal certification. Unfortunately, the halal

certification achievement is still currently far from the target. Thus, how to increase the legal awareness of

business owners and the population of East Java to care for Indonesian halal products? And what are the strategies

and city/regency governments and campus halal institutions carried out some efforts by facilitating the

registration of halal certification, providing free halal certification, as well as establishing socialization, seminars,

and guiding.

Received: March 15, 2023. Revised: November 11, 2023. Accepted: December 14, 2023. Published: January 25, 2024.

Indonesia is the fourth largest importer of halal

in the trade of Asian halal products. It should be able

to penetrate the global market. The strengthening of

the halal chain has been intensified to accelerate

Indonesia’s vision as a Global Islamic Economy [2].

The issue of the halal status of products and

services will always be attached to Muslim

consumers. For them, a halal certification that is

proven by the halal logo shows that the product has

represents the symbol of cleanliness, quality, purity,

and safety [3].

The enactment of Law No. 33 of 2014 on the

Guarantee of Halal Products strengthened the

urgency of the issue of halal and haram in the

production chain, starting from the creation of the

products by business actors, its distribution to end

consumers, and up to its consumption by consumers

[4]. The definition of halal products is regulated in

Article 1 point (2) of the Law on the Guarantee of

this region, spread in all cities and regencies, such as

proll tape (cake from fermented cassava) from

Jember, bagiak (cookies with sago flour and grated

coconut as the main ingredients) from Banyuwangi,

sambal pecel (salad dressing made of peanuts, chili,

sugar, garlic, and tamarind) from Madiun, kue pudak

(a type of snack made of rice flour, sugar, and

coconut milk) from Gresik, Soto (yellow chicken

soup) from Lamongan, Sate Ayam (grilled chicken in

skewers) from Ponorogo, Soto from Madura, cuka

industry. It can become the center of integrated halal

industries based on supreme commodities, products,

and services. East Java has a great number of Micro,

Small, and Medium Enterprises (MSMEs). Sixty

percent of these MSME businesses work in the foods

and beverages (F&B) sector [6].

The data in the years 2020 and 2021 showed that

the production of foods and beverages drastically

increased to 80%, even amid the Covid-19 pandemic.

From this data, 40% of these MSMEs have obtained

Agency/HPAOA). The HPAOA has issued 184 halal

certificates. Meanwhile, from 2017 to 2019, the

Industry and Trade Service of East Java Province

facility quota for business units was 428 [7].

From 2022 up to 2024, the East Java Governor

targets that 1.5 million MSMEs must already have

halal certification [8]. This obtains serious attention

from city and regency governments in East Java as

they also support the goal of the East Java Governor.

However the facts in the field show that from the

several areas that become the research object, the

achieved number of certificates is still far from the

target. For instance, Ponorogo targets 3500 MSMEs,

halal certification. This data was obtained from

questionnaires spread to Heads of MSME forums in

Ponorogo, Malang, Madiun, Jember, and Lumajang

2 Problem Formulation

This paper aims to study: (1) methods needed to

increase the legal awareness of business owners and

the society in East Java towards Indonesian halal

products and (2) the strategies of the East Java

this study were 20 large companies, 30 medium

companies, as well as 50 micro and small companies

in East Java province. The samples were taken from

several cities, i.e., Surabaya, Pasuruan, Ponorogo,

Madiun, Malang, and Jember. The authors obtained

data through direct interviews and questionnaires via

Google Forms that were shared with the East Java

MSME forum. Then, the researchers also took

samples from the East Java people from these cities,

where the researchers obtained 300 respondents who

3 Problem Solution

3.1 The Concept of Legal Awareness

Awareness refers to mental interdependence and

interpenetration that both orient towards the “I” -ness

of humans as well as to their “we” -ness [9]. An

understanding also needs to be given to the term

“law”. This is not a definition. Thus, as what was said

by Van Apeldorn by mentioning Kant, Apeldoorn in

Soerjono Soekanto’s book stated “[The quote] 'the

lawyers are still looking for a definition of their

knowledge and opinion about the law. Things that

concern legal awareness are as follows [16]:

1) Legal knowledge: If a regulation has been

enacted and issued, juridically, this regulation

applies, and it is assumed that society knows it.

2) Legal understanding: Through legal

understanding, society hopes to understand the

aim and benefits of the laws.

3) Legal compliance: A person in the community

complies with the law for various reasons, for

to this law [17].

4) Idealization towards law: Society will respect a

legal norm if they know, understand, and follow

it [18].

5) The increase in legal awareness: The increase in

legal awareness should be carried out through

orderly legal enlightenment and socialization

based on thorough planning [19].

2) Producers and distributors of medical products,

consisting of 4 large business owners.

3) Producers and distributors of cosmetic products,

consisting of 2 large business owners.

4) Owners of middle-level businesses on local batik

fabric products, consisting of 3 business owners.

In Ponorogo it was the owner of Lesung batik, in

Malang it was the owner of Garuda Kencana

premium batik, and in Jember it was the owner

of Rolla Batik House.

came from Jember, Surabaya, Malang, Pasuruan,

Madiun, and Ponorogo. The occupations of these 450

respondents varied: 171 of them were housewives,

180 of them were high school and college students,

and 99 of them had other occupations (teachers,

lecturers, civil servants, private business employees).

The education of these 450 respondents also varied.

Some were junior high school and senior high school

graduates, while others have obtained bachelor’s

degrees, master’s degrees, and doctorate degrees.

are as follows:

Certification

2) The following chart shows the opinion of 84

business owners out of the 111 businesses that have

had halal labeling in the process of registering for

halal certification:

Certification

Certification

on the halal certification and labelling of products

1) The diagram below shows the professions of

450 East Java residents as respondents of this

research:

2) The diagram below shows the education

level of 450 East Java residents as respondents of this

research:

3) The diagram below shows the city of origin

of 450 East Java residents as respondents of this

research:

Java Residents as Respondents on Halal Products

5) The diagram below shows the education on

the halal product usage of 450 East Java residents’

families:

Halal Products for Family

7) The diagram below shows the opinion of 450

East Java residents as respondents on whether or not

street vendors, restaurants, food stalls, café, and

angkringan (traditional Javanese food stalls) have

halal certification for their products:

Restaurants, Cafés, etc. Have Halal Certification for

Their Products

permissible, i.e., permissible by the Islamic sharia,

not haram or valid [22]. The halal industry is the

activity of processing goods using facilities and

equipment that are permitted by Islamic sharia [23].

Based on the research conducted on 111

respondents who were large, medium, small, and

micro business owners in East Java province, it was

found that 58% or 64 business owners have obtained

halal certification or labeling for their products.

Then, 42% or 47 business owners are either in the

process of obtaining halal certification or have not

For Muslim consumers, consuming halal

products is a religious ruling that must be complied

with [24]. They consume halal foods as this status

reflects the food’s safety, goodness, and quality.

Halal products can also provide benefits and

product labeling or certification.

a) Business Owners

business owners in East Java have obtained halal

certification or labeling for their products. Then, 23%

or 26 business owners are still in the process of

registering for halal certification for their products.

found that 247 people have complied with the law in

utilizing halal products, as they always pay attention

to the halal label of the products they consume. Then,

some were doubtful; 133 people lacked compliance

on the importance of the law on halal products as they

sometimes pay attention to the halal labeling, while

at other times they do not. Then, 70 respondents do

not comply with this rule.

Malang) had a strategy where the food and beverage

certification. The Halal Institution of UIN Malang

conducted education and guidance to all F&B sellers.

They processed and issued halal businesses and

products for MSMEs starting from 2018 up to now.

There are currently more than 100 MSMEs around

the UIN Malang campus that have obtained halal

certification from the UIN Malang halal institution

said a staff of the Halal Institution in a personal

the Industry, Trade, and Cooperative Service of

Ponorogo Regency provided the free facility to

register for halal product certification for 2500

MSMEs in Ponorogo. According to the Head of the

2022, Madiun Regency had the strategy to facilitate

the halal certification of 700 products in 2022.

Meanwhile, according to an HPAOA employee in a

HPAOA had the target of providing 25000 free halal

Trade, and Cooperative Service of Ponorogo

Regency provided a halal certification program in

2019 through annual MSME fairs. Industry, Trade,

and Cooperative Service of Ponorogo Regency

establishes routine education and guidance on halal

certification five times a year, said a staff of Industry,

Trade, and Cooperative Service of Ponorogo

Regency in a personal interview on July 26th, 2022.

To educate the East Java people, the government

established MSME fairs that sell products with the

already relatively good, although 42% of them are

still in the process of registering for halal

certification. Meanwhile, the East Java residents’

legal awareness of using halal products is still 45%,

which is quite low. In achieving the target of

increasing legal awareness of halal products, the

provincial and city/regency governments; HPAOA;

and campus halal institutions carried out some efforts

by facilitating the registration of halal certification,

providing free halal certification, as well as

Jember.

References:

[1] A. Aliasar, Indonesia Negara Pelopor Data

Perdagangan Produk Halal Terintegrasi

(Indonesia is a Pioneering Country of

Integrated Halal Product Trade Data), Komite

Nasional Ekonomi dan Keuangan Syariah

(National Committee on Sharia Economics and

Finance), 2021.

Accelerate Halal Products to Great on the World

Market), Al-Syakhsiyyah J. Law Fam. Stud.,

Vol. 1, No. 2, 2019, pp. 243–254.

[3] F. Rahmi, Pengaruh Label Halal MUI

Terhadap Loyalitas Konsumen Pada Product

Cosmetic di Kalangan Mahasiswi Prodi

Ekonomi Syariah Fakultas Syariah Dan Hukum

UIN Suska Riau (The Influence of the MUI

Halal Label on Consumer Loyalty in Cosmetic

jurnal.peraturan.go.id/index.php/jli/article/view

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[5] F. J. Sulaeman, Tinjauan Yuridis Terhadap

Peredaran Produk Cina di Mekkah yang