Analysis of self-declared halal certification in Indonesia: regulation, barriers, and opportunity

Micro and Small Enterprises (MSEs) in Indonesia face challenges in implementing safety and halal management. Halal certification is crucial for the food industry, as it provides greater confidence to consumers. Self-declared halal certification (SDHC) is a system in which a company declares its products as halal without the involvement of a third-party certifying agency, without any costs (free) and low cost. SDHC is a growing trend in Indonesia due to the lack of government regulation and practical implementation. As a special regulation for MSEs, SDHC is suspected of being ineffective in its implementation and supervision, which may potentially reduce consumer trust. This study provides a comprehensive and novel synthesis of Indonesia’s SDHC framework by integrating regulatory, economic, and trust-based dimensions to address issues of credibility and governance. Employing a narrative literature review method, the study analyzed the SDHC system in Indonesia. This study draws on a diverse range of sources, encompassing peer-reviewed academic literature, official government regulation, and various scholarly materials. The implementation of SDHC regulation should be limited to low-risk production processes and subject to stricter oversight of facilitators and MSEs. The synergy of the food safety and halal cycle integrates drivers, barriers, critical success factors, and benefits, which is imperative for strengthening SDHC in Indonesia and globally.