Challenges Implementing Indonesia’s Halal Product Guarantee Law for MSMEs: Legal Readiness Review
DOI:
https://doi.org/10.28918/jhc.v1i1.14222Keywords:
halal law implementation, MSME readiness, halal certification barriers, legal certainty.Abstract
The enactment of Indonesia’s Halal Product Guarantee Law (Law Number 33 of 2014) marked a fundamental shift from voluntary to mandatory halal certification. Despite its strategic objective of strengthening consumer protection and global halal competitiveness, the law has posed complex legal and practical challenges for Micro, Small, and Medium Enterprises (MSMEs). A persistent gap persists between regulatory demands and MSMEs’ actual readiness, creating risks of unintentional non-compliance and economic exclusion. This study aims to analyse the legal readiness and key juridical obstacles faced by MSMEs in implementing mandatory halal certification in Indonesia through a comprehensive literature-based assessment of post-enactment developments. The research used a qualitative systematic literature review, examining peer-reviewed journals, legal commentaries, and official regulatory documents published between 2014 and 2026. The analysis adopts a socio-legal approach to evaluate the interactions among legal substance, institutional structure, and legal culture that affect MSME compliance under the Halal Product Assurance System. The findings reveal that MSME readiness is constrained by limited legal literacy, psychological resistance to regulatory burdens, and significant technical and operational barriers, particularly in raw material traceability, facility segregation, and digital access to the SIHALAL platform. The centralised, uniform regulatory model fails to accommodate the heterogeneous, informal nature of MSMEs. Comparative insights indicate that effective halal governance depends on facilitative support infrastructure rather than coercive enforcement. The study concludes that strengthening proportional regulation, institutional support, and capacity-building mechanisms is essential to ensure the inclusive and sustainable implementation of halal law.
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