Readiness and Interest in Halal Certification: Evidence of the Importance of Self-declare Literacy and Types of Business of Indonesian MSMEs

Currently, the Indonesian government is completing the work of enforcing halal certification and achieving Indonesia’s vision of being the center of the global halal product business. The rapid growth of Islam in Indonesia compels corporate actors to obtain halal certifications in order to gain the public’s trust. Regarding halal certification, the interest and preparedness of each MSMEs business actor varies. The willingness and interest of MSMEs in halal certification can be inferred from their self-reported literacy and company type. This study intends to examine the impact of self-declared literacy and business type on the preparedness and interest in halal certification among Indonesian MSMEs, particularly in the Greater Malang region. The research sample consisted of 200 respondents who were all members of the Malang Raya MSME and who were recruited using the Purposive Sampling Technique. The data utilized are primary data collected through the completion of a questionnaire by respondents. This study uses Structural Equation Modeling (SEM) with the SmartPLS application to handle data. Self-Declare Literacy and Business Type have a favorable and statistically significant effect on the Readiness and Interest of MSME Business Actors in Halal Certification. This indicates that the preparedness and interest of MSME business actors in preparing for the need for halal certification is heavily influenced by their knowledge, understanding of the significance of halal recognition, and the type of business they operate, all of which serve to increase consumer interest in a product. This is evident by the significant desire of business actors to prepare for all requirements and the halal certification process.