Differentiated Challenges, Shared Obligations: Navigating Halal Certification And Food Security In Malaysia And Indonesia

Umi Hamidaton Mohd Soffian Lee; Adlin Masood; Ayif Fathurrahman; Raudha Md Ramli

doi:10.33102/jfatwa.vol31no2.768

Authors

Umi Hamidaton Mohd Soffian Lee Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, 71800 Nilai, Negeri Sembilan, MALAYSIA
Adlin Masood Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, 71800 Nilai, Negeri Sembilan, MALAYSIA
Ayif Fathurrahman Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta, Jl. Brawijaya, Geb lagan, Tamantirto, Kec. Kasihan, Kabupaten Bantul, Daerah Istimewa Yogyakarta 55183, INDONESIA
Raudha Md Ramli Faculty of Economics and Management, Universiti Kebangsaan Malaysia, 43600 Bangi, Selangor Darul Ehsan, MALAYSIA

DOI:

https://doi.org/10.33102/jfatwa.vol31no2.768

Keywords:

Halal Certification, Small and Medium Enterprises, Food Security, Nutrition Security, SMPO Framework

Abstract

Halal certification serves as a critical mechanism for strengthening food systems, particularly within Muslim-majority nations where religious compliance intersects with public health and economic development. This study examines how Malaysia and Indonesia, despite sharing Islamic foundations, navigate distinct pathways in implementing Halal certification among Small and Medium-sized Enterprises (SMEs) while addressing divergent national food priorities. Indonesia continues addressing fundamental food insecurity challenges where access, affordability, and availability remain paramount concerns, while Malaysia has transitioned toward managing nutrition security by focusing on food quality and health value optimization. Employing the Strategy Management Policy Outcome (SMPO) framework, this comparative analysis synthesizes secondary data from regulatory documents, academic literature, and policy reports to explore how national food priorities influence certification practices. The research reveals that Malaysia’s JAKIM-administered MS1500:2019 standard, though globally respected, creates substantial managerial challenges for SMEs through cost burdens, procedural complexity, and audit requirements. Conversely, Indonesia’s BPJPH framework offers greater accessibility through extended validity periods and simplified requirements yet face implementation challenges due to the nation’s scale, decentralized governance structures, and predominance of informal SMEs. Findings demonstrate that while both nations maintain commitment to Halal integrity, their strategic orientations and institutional realities differ significantly. Malaysia’s policy environment emphasizes export-driven, quality-centric Halal assurance, whereas Indonesia's evolving system prioritizes inclusivity and national coverage. The SMPO analytical lens underscores the necessity for context-sensitive support systems enabling SMEs in both countries to contribute meaningfully to their respective food or nutrition security agendas. This research contributes to Halal governance discourse by linking certification challenges with broader developmental outcomes, offering insights for policymakers and Halal authorities to tailor SME support strategies aligned with national priorities.

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