The Intention of Halal Certification by Micro Business
Abstract
Only about 10% of all micro business in Indonesia have been halal certified. This study aims to understand the factors that can encourage these businesses to undertake a halal certification. Of the 30 respondents who have not yet applied for a halal certificate, this study found that halal awareness, halal knowledge, and challenges in obtaining certification do not affect intention. The businesses surveyed knew about and understood the process of halal certification, but this knowledge did not guarantee they would apply. Challenges were also not a barrier of halal certification. However, internal and external pressures – such as the desire to have standardized products, encouragement from government, and consumer expectations of halal products – do foster the intention to gain halal certification. This study concludes by demonstrating the importance of real encouragement and assistance to motivate businesses to obtain halal certification for their products.
Keywords: Halal certification, intention.
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