Certification in Halal markets regulations, players, and procedures

Abstract

Due to the rising awareness about Islam, the Muslim community experienced a constant increase over the last years. Therefore, the demand for Halal products and services is growing in tandem with the growth of the Muslim population around the world. In South-Asia regions, many governments have successfully implemented standards for Halal products. However, with the worldwide growth that Halal is facing, the lack of one global Halal standard for certification and accreditation is getting urgent. The different Halal standards between countries are confusing and lead to misunderstanding. "Due to this non-uniformity in the application of Halal standards, Halal certification became the subject of different personal interpretation which mostly result in confusion and scepticism in consumers' behavior towards reliability of Halal products and services" (Dugonjic, 2015). To understand how the Halal Certification System works, this thesis provides a literature review explaining the concept of Halal, the different segments composing it and the Integrity of the Halal Supply Chain. As a concrete example, The Halal Certification Process in Indonesia has been detailed out. With the help of the Business Model Canvas, the purpose of this research is to define the key elements of the Halal Certification Process. Moreover, with the analysis of 19 Halal Certification websites and 16 Halal Standard documents, this research paper has the goal to measure Halal Certification Bodies' performance and subsequently conclude a benchmark. The result, which is the General Map, gives the structure of an ideal Halal certification website. Additionally, a grid of evaluation has been established to measure the external performance of Certification Bodies' Website. This grid will provide a rating classifying them from the most relevant to the less. Finally, this research exposes the current debates around the status of Halal standard and compares the Indonesian Halal Assurance System with the well-known ISO standards. The result explains that Halal fits well with ISO, and this is why the current proposal for a new technical committee on Halal within ISO is a positive initiative. Without one global Halal standard which is recognized and accepted worldwide, the Halal industry will never be able to achieve its full potential and thus, continue to grow as steadily as it does now.