IJIBEC

ISSN:
International Journal of Islamic Business and Economics 2599-3216

Available at http://e-journal.iainpekalongan.ac.id/index.php/IJIBEC/ E ISSN:

International Journal of Islamic
2615-420X
Business and Economics

The Urgency of Halal Assurance System for Product Reliability

Moch. Khoirul Anwar

Universitas Negeri Surabaya

Email: khoirulanwar@unesa.ac.id

Article Info Abstract

Article History: Indonesia is a country with world most Moslem population.
Thus, among other countries participated in Islamic
Received : 25 July 2018
Konference Organization, Indonesia is the biggest on product
Accepted : 20 August 2018
Published : 1 Dec 2018
consumption market. This huge number of Moslem is crucial
to be considered in business, particularly to the reliability
of food product in Indonesia. This far, halal products is
attributed with a certificate of halalness established by MUI
(i.e, Indonesia Ulama Committee). However, the monitoring
of halal products by companies with halal certificate may not
be sustainably conducted by MUI, thus it needs a company
system assuring that their products are halal. This study used
a qualitative approach and was a field research. As a practival
resource, this study was conducted in LPPOM MUI (i..e,
Department of Assessment on Foods, Drugs, and Cosmetics
by Indonesia Ulama Committee) East Java and another
place related to this department. The data of this study was
collected by participative observation or engaged observation
and interview. Additionally, documentation in particular to the
existing system of halalness by LPPOM MUI East Java was also
applied. As the result, first, in order to assure the halalness
of food products from halal-certified companies, it needed a
Halal Assurance System. Second, this Halal Assurance System
was made and applied by halal-certified companies to keep
the sustainability of halalness on their products. Third, Halal
Keywords: Assurance System was an effort for customer satisfaction.

Halal Assurance System,

Sustainability of Halalness,
Customer Satisfaction

https://doi.org/10.28918/ijibec.
v2i2.1388

JEL: G20; G22

120 International Journal of Islamic Business and Economics (IJIBEC), 2(2) December 2018, 119-125

1. Introduction
In order to provide assurance that foods which people consume is halal and proper for consumption,
in particular to Moslem, Indonesia Ulama Committee (i.e., MUI) makes a policy by organizing a
department of assessment on foods, drugs, and cosmetics (i.e., LPPOM) that function is to monitor
and study products of foods, drugs, and cosmetics which in turn providing suggestions toward
Committee of Fatwa to establish halal certificate on products that meet the criteria of halal. This
far, LPPOM MUI is passive. That is, this department is about to conduct a study on a product by
request from companies who are willing to make their products recognized as halal products,
given that Act No. 33 Year 2014 has not been implemented yet.
In short, halal certificate by LPPOM MUI East Java is by request from companies, which in
turn having an audit on documentation, ingredients, location, and process of production. From
such audit, the committee of Fatwa MUI may define whether or not the product is halal. The
validity period of this halal certificate is two years, but for import meats as its validity period is
every shipping.
The data since 2011 to 2018 (up to August) showed that the number of halal-certified
products, both regular proposal and Small Middle Enterprises (SMEs) cooperated with related
instances was 91.676 products, and the total number of halal-certified companies was 4.425. The
number of halal-certified products was significantly increasing, especially in 2016. However, the
data of halal certificate in 2018 was only up to August although it was commonly counted at the
end of the year, particularly for SMEs. It is based on the following data.
Table 1.
Halal Products
The Number of Halal The Number of
The Number of Product
No Year certificate Companies
Reg SMEs Total Reg SMEs Total Reg SMEs Total
1 2011 233 130 363 4649 775 5424 203 130 333
2 2012 307 165 472 3816 606 4422 241 159 400
3 2013 325 29 354 13531 129 13660 325 29 354
4 2014 376 275 651 5897 1496 7393 292 274 566
5 2015 496 389 885 8348 2033 10381 317 373 690
6 2016 589 343 932 22686 2011 24697 461 331 792
7 2017 548 431 979 13061 2930 15991 444 420 864
2018 (up to
8 362 129 491 8718 990 9708 301 125 426
August 2018)
  Total 3236 1891 5127 80706 10970 91676 2584 1841 4425
Source: Document of LPPOM MUI East Java, 2018

Looking into the number of halal-certified products, it showed that many food products had
not been certified. Act No. 33 Year 2014 that requires every product registered, spread out, and
sold in Indonesia to have halal certificate is about to be implemented. Of course, it may bring
several problems for fodd companies, especially those classified into Small Middle Enterprises
(SMEs). They have limitation on finance and human resources. On the other hand, the government
should empower the actors of SMEs, given the huge number of employees engaged within, and
thus, the attempt of poverty alleviation in Indonesis may work well.
This far, a facility of halal certification cooperated with LPPOM MUI and government intances,
in particular to both Provincial and Local Department of Industry and Commerce has been organized,
however, it is merely certification and the SMEs thought that the process has ended when they
 International Journal of Islamic Business and Economics (IJIBEC), 2(2) December 2018, 119-125 121

had the certificate. They thought that halal certification was like another licensing (Anwar, 2018),
whereas it is a kind of continual activities, not only at the beginning, but also sustaining the quality
of the product, especially the halalness.
Being halal and haram is principle in Islam, as Alquran and Hadits clearly get human to have
good and halal consumption, as Allah saying in Al-Quran: “Oh, Mandkind, eat from whatever is on
earth [that is] lawful and good and do not follow the footsteps of Satan. Indeed, he is to a clear
enemy” (QS. Al-Baqarah [2]: 168), as well as Allah saying: “Oh, you wh have believed, eat from
the good things which We have provided for you and be grateful to All if it is [indeed] Him that
you worship.” (QS. Al-Baqarah [2]: 172). In addition, Allah also said: “And eat of what Allah has
provided for you [which is] lawful and good. And fear Allah, in whom you are believers.” (QS. Al-
Ma’idah [5]: 88).
Furthermore, many verses have prohibited mankind consuming haram products, as Allay
said: “Oh, you who have believed, indeed, intoxicants, gambling, [sacrificing on] stone alters [to
other than Allah], and diving arrows are but defilement from the work of Satan, so avoid it that
you may be successful.” (QS. Al-Ma’idah [5]: 90). Allah also said: “You are forbidden (to consume)
the dead, blood, and the flesh of swine; also flesh dedicated to any other than Allah, the flesh of
strangled (animals) and of those beaten, that which is killed by falling, gored to death; mangled by
beasts of prey, unless you find it (still alive) and slaughter it; also of animals sacrificed on stones (to
idols). (You are forbidden) to seek division by the arrows, that is debauchery. Those who disbelieve
have this day despaired of your religion. Do not fear on them, but fear on Me. This day I have
perfected your religion for you and completed My favour to you. I have approved Islam to be your
religion. (As for) he sho does not intend to commit a sin but is constrained by hunger to eat of what
is forbidden, then surely Allah is Forgiving, Merciful.” (QS. al-Maidah [5]: 3).
From those all verses, what is defined as halal food is any good food and allowed to eat
based on the tenet of Islam, which corresponds to Al-Quran and Hadits. Ibnu Katsir (2000, VI-415)
defined the term halal as something good that brought benefits for body and religion, and what
was being haram is something bad that brought disadvantages and danger for body and religion.
Simply saying, Marzuki (2014) defined halal food as those allowed by Islam to eat based on Al-
Quran and Hadits.
Furthermore, the definition of good food (thayib) is any kinds of food that may bring health
for body, revealing a willing to eat and not forbidden by Al-Quran and Hadits. If it is not found in
Al-Quran and Haditz, it needs more detail and clearer explanation through ijtihad in the form of
ijma’ and qiyas toward a common nash that should be more explored by Ulama in order to avoid
any syubhat (doubt).

2. Research Method
This study is field research. As the practical sources, it is conducted in Department of Halal
Certification LPPOM MUI East Java and halal-certified companies of food products, as well as
another place related to this study. For data collection, it is through observation, interview, and
documentary. This study is qualitative, since the data is analyzed in verbal-descriptive manner.
In this study, the author would have both qualitative (quality-oriented) and quantitative
(quantity-oriented) data collection. Therefore, it is classified into qualitative research as it focuses
more on meaning along with qualitative data and analysis. Toward the quantitative data, it would
be organized in quantitative manner withougt being forced to be analyzed qualitatively. This is
what the author intended to do in data collection. Therefore, the quantitative data would not be
counted through evidence for a prediction, but would be used as a supporting phenomenon for
 research as it focuses more on meaning along with qualitative data and analysis. Toward 
the  quantitative  data,  it  would  be  organized  in  quantitative  manner  withougt  being 
122 forced  to  be  analyzed 
International Journalqualitatively.  This  is and
of Islamic Business what  the  author 
Economics intended 
(IJIBEC), to  do  in  2018,
2(2) December data  119-125
collection. Therefore, the quantitative data would not be counted through evidence for 
a prediction, but would be used as a supporting phenomenon for qualitative analysis in 
qualitative analysis in order to bring reliability on its final conclusion.
order to bring reliability on its final conclusion. 
After having
After data collection,
having  the nextthe 
data  collection,  stage
next is analyzing them all.them 
stage  is  analyzing  As itall. 
is aAs 
qualitative
it  is  a  research,
qualitative  research,  the  data  analysis  is  open‐ended  and  inductive. 
the data analysis is open-ended and inductive. Using inductive manner, the data would be analyzed Using  inductive 
manner,  the  data  would  be 
through descriptive-qualitative way.analyzed 
In this through 
case, the descriptive‐qualitative 
author would applyway.  In  this analysis
content case,  as well. it
the author would apply content analysis as well. it is a scientific analysis on the content 
is a scientific analysis on the content of a phenomenon or communication.
of a phenomenon or communication. 
 
3. Result3. and Discussion
Result and Discussion 
3.1. The Urgency of Halal Assurance System
3.1. The Urgency of Halal Assurance System 
As mentioned in the document of LPPOM MUI, Halal Assurance System is an integrated 
As mentioned in the document of LPPOM MUI, Halal Assurance System is an integrated
management  system  structured,  applied,  and  maintained  by  companies  in  order  to 
management system
regulate  their structured,
ingredients, applied, andproduction, 
process  of  maintained by companies
products,  in order toand 
human  resources,  regulate their
ingredients, process
particular  of production,
procedrues  products,
for  the  sake  human resources,
of  sustainability  and particular
on  the  process  procedrues for the
of  halal  production 
based on the requirement of LPPOM MUI (LPPOM MUI,2018). This definition shows that 
sake of sustainability on the process of halal production based on the requirement of LPPOM MUI
Halal  Assurance 
(LPPOM MUI,2018). ThisSystem  is  an shows
definition ideal  system 
that Halalconsisting  of  various 
Assurance Systemelements  that system
is an ideal every  consisting
halal‐certified company should have. 
of various elements that every halal-certified company should have.
In simply saying, Halal Assurance System (i.e., SJH/Sistem Jaminan Halal) consists 
In simply saying, Halal Assurance System (i.e., SJH/Sistem Jaminan Halal) consists of several
of several elements, as follow. 
elements, as  follow.
 
 
 
 
 
 
 
 
 
 
 
 
 
Figure 1. Halal Assurance System
Figure 1. Halal Assurance System 
 
3.2. Halal Assurance System as the Guarantee for Product Reliability
3.2. Halal Assurance System as the Guarantee for Product Reliability 
In accordance to its title, this Halal Assurance System aims to assure that a company’s 
In accordance to its title, this Halal Assurance System aims to assure that a company’s products
products are classified into halal products and have corresponded to the requirement of 
are classified into halal products and have corresponded to the requirement of LPPOM MUI. It is
LPPOM MUI. It is a kind of necessity since it is impossible for the official of LPPOM MUI 
a kind of to conduct daily monitoring on product halalness. 
necessity since it is impossible for the official of LPPOM MUI to conduct daily monitoring
on product halalness.
In addition, this system is a kind of quality assurance that considers halal as one of 
the criteria. Thus, halal‐certified products are those corresponding to the criteria of halal 
In addition, this system is a kind of quality assurance that considers halal as one of the
under the provision of MUI. Similar to another quality assurance which has certification 
criteria. Thus, halal-certified products are those corresponding to the criteria of halal under the
of  quality  system  on  it,  the  analogue  of  assurance  for  halal  product  is  called  halal 
provisioncertification. It is a kind of  
of MUI. Similar to another quality assurance which has certification of quality system on
it, the analogue of assurance for halal product is called halal certification. It is a kind of
Systematic examination to find out whether a company’s product consistently satisfies 
Systematic examination to find out whether a company’s product consistently satisfies the
criteria of being halal. The resul of this certification is the recognition of halalness on the tested
product based on the provision of MUI, in the form of halal certificate.
As Halal Assurance System is classified into quality assurance in the form of halal certificate,
following Anwar (2017), halal certification by LPPOM MUI is an attempt to protect consumers,
particularly Moslem, from any haram products that Islam has forbid. As commonly seen that Islam
provides a rule to its follower to consume halal products and forbid them consuming haram ones.
Moslem consumers need to be protected from any haram products as well (Ridlwan, 2017),
 International Journal of Islamic Business and Economics (IJIBEC), 2(2) December 2018, 119-125 123

as one primary purpose of consumer protection is to make every individual healthy both physic
and mental. It is as Sidabalok (2010:6) argued that one primary reason addressing why consumers
should be protected is for the sake of creating healthy individuals, both physic and mental, as
the generation of development, which also implies to maintain the sustainability of national
development.
The law of Halal Product Assurance (i.e., UU JPH) mentions that the assurance of halal product
is a legal certainty toward products, and it is proven by halal certificate. The organization of JPH
aims to (1) provide convenience, safety, security, and assurance of the availability of Halal products
for every body, and (2) enhance the value-added for companies to produce and sell halal products.
3.3. Halal Assurance System as a Sustainable Assurance for Product Halalness
Halal Assurance System is an integrated management system structured, applied, and maintained
by companies in order to control all the ingredients they use, the process of production, the
product, the available human resources, and the applied procedures. It is conducted in order to
keep the sustainability of halal production under the regulation of LPPOM MUI.
Maintaining the sustainability of halal production is necessary due to several cases of halal-
certified companies which products contain pork within. Among those cases, a restaurant using
pork in its menu is found. This may be due to the fact that the management does not apply Halal
Assurance System in complete manner (Billiocta, 2015). Whereas, less restaurants are halal-
certified, as the study from Halal Watch; an official body providing advocation and protection for
consumers in case of halal issue. It found that less restaurants had halal certificate. Among 3.081
restaurants in Indonesia, only 46 of them had halal certificate, or it was only 1.49% (Sugianto,
2016).
Halal Assurance System is made and applied optimally by companies in order to avoid any
haram products that Islam has forbidden to eat, both haram lidzatihi (i.e., due to the ingredients)
and haram lighairihi (due to the process of production). There are 11 criteria in Halal Assurance
System, including (1) the policy of halalness that contains company’s policies in keeping their
products halal, (2) halal management team consisting of employees with responsibility on product
halalness, (3) training and education on halal production by companies toward their employees,
(4) every ingredient the companies use, both raw, additive, and processing aid materials, should
be halal, (5) the products they produce should not be against the syari’ah regulation, (6) the
facility of production should be clean from any najis, both najiz mukhaffafah, mutawasithah, and
mughaladhah, (7) the companies should have written procedures of critical activities on halalness,
(8) the capability to track on halal-certified products, (9) unqualified product handling, (10) internal
audit, and (11) management review to maintain the halalness of product.
Applying those 11 criteria, halal-certified companies may assure that their products are
completely halal based on the standard of LPPOM MUI. Therefore, in order to motivate the
employees to work properly based on the existing regulation and criteria on Halal Assurance
System, the companies should organize a program of education and training, as well as reward
and punishment on them, and thus, the possible risks due to human error may be eliminated, for
instance, unqualified ingredients against the list of ingredients recognized by LPPOM MUI, and any
other possible risks that may happen (Sholihah, 2017).
3.4. Halal Assurance System Provides Satisfation to Consumers
A modern management does not only think on how to get consumers, but also how to maintain
them to be customers. One of the ways is by providing satisfaction to consumers (Kavanillah, 2018).
In general, Normasari (2013) defined customer satisfaction as a comparison between services and
124 International Journal of Islamic Business and Economics (IJIBEC), 2(2) December 2018, 119-125

the result the customers perceive with an expectation that both services and result they perceive,
at least, should be equal as what they had expected, or even beyond their expectation. It means
that customer satisfaction refers to customers’ feeling as the response to the goods and services
they receive.
Halal Assurance System is a part of effort to provide satisfaction to customers, in particular to
Moslem customers. Companies that implement Halal Assurance System is likely to understand the
characteristics of their consumers and customers, and it is commonly called customers’ behavior.
Assael, in Anwar (2014), explained that understanding the characteristics of consumers was very
crucial for companies in order to produce the appropriate goods and services as people expected,
provide a fair price in more interesting condition compared to what other companies have offered.
Hence, the consumers may completely give their trust on the company.
In the perspective of marketing, Halal Assurance System is a part of Syari’ah marketing.
Kertajaya and Sula (2006) defined the term “syari’ah marketing” as a discipline of strategic business
that leads to the process of creating, offering, and altering the value of an initiator toward the
stakeholders, which all the process is consistent with the value of syari’ah. Thus, syari’ah marketing
is implemented based on the concept of Islam as what Nabi Muhammad SAW has taught. It means
that, in the practice of syari’ah marketing, all the processes (creating, offering, and altering the
value) should not have things against the principles of Islamic muamalah.
Following Anwar (2014), the characteristics of syari’ah marketing which implicitly takes ethics
and moral as its priority refers to providing an excellent service to consumers, and in turn, providing
satisfaction to the consumers. It is due to psychological factors, such as motivation, perception,
learning, trust, and attitude, which may affect the consumers’ selection on buying things.
Recently, therefore, halal products become a new trend on business, particularly in
international commerce (Zulkarnain, 2014). The government, through its related departments,
facilitates Small Middle Enterprises (SMEs) to have halal certification with an expectation that they
may have capability to compete with big companies that have already had high awareness on halal
sertification as well as Halal Assurance System (Anwar, 2017).

4. Conclusion
In accordance to the discussion and analysis of this study, it concludes that, in order to assure
the halalness of food products from halal-certified companies, it needs Halal Assurance System.
It is made and applied by halal-certified companies to maintain the sustainability of their product
halalness. It is a way to bring satisfaction to customers. From this conclusion, the author suggests
that every halal-certified company, in particular to those in food industry, should pay more
attention on Halal Assurance System, both its manual and implementation, in order to improve
the consumers’ trust on their products.
Acknowledgment
This article is the result of research in 2018. The author would like to thank the Ministry of Research,
Technology and Higher Education and LPPM Universitas Negeri Surabaya who has provided financial
support to this research.

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