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Subsidized Funds Become a Solution for Halal Certification Costs for MSEs

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Some say that the cost of halal certification is considered high. So that it is declared burdensome, and the impact is not conducive to the business world. Such an expression seems to be a one-sided statement, which tends to have a tendentious connotation, relatively without proportional comparison with other quality certification financing.

In fact, the halal certification process carried out by the Assessment Institute for Foods, Drugs and Cosmetics Indonesian Council of Ulama (LPPOM MUI)) with a fatwa stipulated by MUI is a manifestation of the role and mission of Himayatul Ummah as well as Khidmatul-Ummah carried by MUI. Namely protecting the ummah from the life practices of the ummah that are prohibited in Islam, with halal certification services. This includes protecting Muslims from consuming products with unclear halal status with halal research or audits by LPPOM MUI experts, and determination of Halal Fatwas by qualified scholars at the MUI Fatwa Commission (KF).

Even if there is a financing burden for the halal certification process which is considered burdensome for Home Industry Entrepreneurs (PIRT) or Small and Micro Businesses (MSEs), MUI also tries to find solutions. Among other things, by fostering a spirit of struggle and sacrifice for all implementing staff, as well as establishing partnerships with related parties who have an interest and care about this halal da’wah and social charity.

As a real example, the halal certification activity in East Kalimantan Province (Kaltim) was conducted by LPPOM MUI East Kalimantan Province, led by drh. H. Sumarsongko. About more than 80%, the halal certification activities in the province are businesses or home industries.

“So that to finance the halal certification process must be supported and assisted by subsidized funds from third parties,” said Sumarsongko.

It must be admitted, he further explained, that business actors are relatively unable to independently finance the halal certification process. Let alone the additional financing for example for the halal certification process, while the funds or income for the continuity of the business are still relatively heavy, even gasping for breath.

What is meant by third party support includes subsidized funds from the Regional Government (Pemda) through the Regional Work Units (SKPD) or Regional Technical Implementing Units (UPTD), related apparatus or services from the local, provincial and regency levels and city. Most of the funding sources for halal certification until 2019 are still assisted by local governments through the Provincial APBD and Regency / City APBD funds as well as the APBN through the Director General of IKM of the Ministry of Industry of the Republic of Indonesia.

“In addition, efforts are also made to obtain support and assistance through companies that care about halal certification, for example, through the allocation of corporate social responsibility (CSR) funds. For example, PT PAMA is engaged in coal mining. The company helps allocate funds for the halal certification process for home industry entrepreneurs around the company’s location. And also mining company’s PT Kideco and PT Kaltim Prima Coal, PT Angkasa Pura I, PKT, Pertamina, even Chevron, “he explained again.

With intensive and sustainable halal socialization and education efforts by LPPOM MUI Kaltim to the wider community, Alhamdulillah, many parties have supported this halal movement. This effort is also part of the assistance package and partnerships between LPPOM MUI and third parties, as already mentioned, so that, there is mutual reinforcement that is synergistic between stakeholders.

The halal certification process carried out by LPPOM MUI is also intended to help develop the PIRT and MSE businesses. Because by having SH from MUI, their products can be marketed more widely, and are accepted by the public, which in turn, will be able to help increase their business turnover, improve the standard of living of these PIRT entrepreneurs. It also increases the potential to absorb labor, and also contributes to local government revenue or revenue (PAD). Furthermore, they can independently finance the process of renewing the halal certificate that has been obtained. (USM)

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