Strengthening Indonesia’s Halal Industry through Quality Management and MSME Certification

Abstract

Indonesia has substantial potential to become a global halal industry hub, supported by the world's largest Muslim population and the continued growth of its Islamic economy. However, Indonesia's third-place position in the Global Islamic Economy Indicator (GIEI) indicates that this potential has not yet been fully converted into global competitiveness. This study analyzes the implementation of halal industry quality management and the strengthening of halal certification for micro, small, and medium enterprises (MSMEs) based on the GIEI, identifies the juridical, institutional, managerial, and economic barriers to optimization, and formulates a reconstructed halal quality management model to enhance Indonesia's international competitiveness. This normative legal research applies statutory, conceptual, and comparative approaches, with data analyzed qualitatively. The findings show that halal industry quality management should integrate the principles of halalan ṭayyiban, maqāṣid al-syarī‘ah, quality management systems, MSME halal certification, digitalization, Islamic financing, and halal supply chain development within a sustainable halal ecosystem. The main barriers are multidimensional and require governance reform through a stronger Halal Product Assurance System, institutional capacity building, quality culture development, and integrated halal quality management. The study's novelty lies in reconstructing a model that combines the GIEI, maqāṣid al-syarī‘ah, the concept of itqan, MSME halal certification, and good halal governance. This model is expected to strengthen Indonesia's global competitiveness and support its development as a sustainable halal industry hub grounded in Islamic economic law.