Bridging Halal Policy Gaps through Value-Based Governance in Indonesia

Abstract

Purpose – This study aims to analyze the role and significance of the value based governance application such as the Standards and Metrology Institute for Islamic Countries (SMIIC) to bridge policy of halal certification in Indonesia. This study also wants to explore how concept of value-based governance can be integrated into halal policy development to address existing policy gaps and institutional fragmentation. Many previous studies suggest that halal certification is one of the key drivers of economic growth, particularly in Muslim-majority countries.

Design/methods– This study employs a qualitative desktop research approach, focusing on an extensive review and analysis of secondary data sources. The data were collected from academic journals, official documents, policy papers, and reports related to halal certification, value-based governance, and the role of the Standards and Metrology Institute for Islamic Countries (SMIIC). Through systematic document analysis, the study identifies policy gaps, governance challenges, and awareness levels of halal certification in Indonesia. The methodology emphasizes critical evaluation and synthesis of existing literature and institutional frameworks to understand how value-based governance principles can be applied to improve halal certification policies and practices in the Indonesian context.

Findings – The findings of this study indicate that SMIIC, as a representation of value-based governance, plays a significant role in enhancing awareness of halal certification in Indonesia. Specifically, the research reveals that SMIIC exerts a measurable internal influence on individuals by guiding distinct rituals and behaviors related to halal practices. This influence manifests in increased recognition and acceptance of halal certification as a necessary standard for products consumed by Muslim communities. The study also identifies a correlation between SMIIC’s efforts and improvements in public understanding of halal certification processes, though gaps remain in policy implementation and institutional coordination. These findings confirm that integrating value-based governance principles through SMIIC strengthens the legitimacy and awareness of halal certification, thereby supporting economic and social objectives in Indonesia.