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Revealing factors hindering halal certification in East Kalimantan Indonesia

Sulistyo Prabowo (Department of Agricultural Products Technology, Faculty of Agriculture, Mulawarman University, Samarinda 75119, Indonesia. AND Halal Products Research Institute, Universiti Putra Malaysia, Serdang 43300, Malaysia.)
Azmawani Abd Rahman (Halal Products Research Institute, Universiti Putra Malaysia, Serdang 43300, Malaysia. AND Faculty of Economic and Management, Universiti Putra Malaysia, Serdang 43300, Malaysia.)
Suhaimi Ab Rahman (Halal Products Research Institute, Universiti Putra Malaysia, Serdang 43300, Malaysia. AND Faculty of Economic and Management, Universiti Putra Malaysia, Serdang 43300, Malaysia.)
Asnarulkhadi Abu Samah (Faculty of Human Ecology, Universiti Putra Malaysia, Serdang 43300, Malaysia.)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 8 June 2015

Abstract

Purpose

This study aims to explore various factors that hamper halal certification in food service industries in East Kalimantan, Indonesia. World halal business as well as awareness in halal products and services consumption has been growing rapidly for the past few years. However, many industry players have not yet realized those huge potential concepts of halal business. Food service industries such as restaurants and caterings show less concern in putting priority on the issue of halal certification.

Design/methodology/approach

A qualitative data collection technique called nominal group technique (NGT) was used in this study. Four categories of stakeholders participated in this NGT to represent certifying body, consumers, industry player and government. Each category was given a fundamental question: “What factors are hindering restaurant and catering in East Kalimantan, Indonesia, in obtaining halal certification?”

Findings

The authors found that through NGT, the authors can obtain top priority issues to be followed up by the respecting institutions which are concerned. The lack of socialization and information have led to the lack of knowledge and awareness. This is the most important issue addressed by the participants.

Research limitations/implications

This research was conducted to collect data from various stakeholders in East Kalimantan Province of Indonesia. Considering the vast expanse of Indonesia and different level of development in each province, results of this study could not be generalized as Indonesia situation in general.

Practical implications

Halal certification in food service industry gains low interest from industries. This research presents hampering factors in various perspectives and offers some suggestions to overcome those issues accordingly.

Originality/value

It is hard to find research paper discussing halal management from the Indonesian perspective. This paper extends the use of NGT in halal management with the perspectives from many stakeholders in food service industries. It provides a relatively new finding from the Indonesian point of view.

Keywords

Acknowledgements

This article is part of a doctoral research program at the Halal Products Research Institute Universiti Putra Malaysia. The authors thank the Provincial Government of Kalimantan Timur, Indonesia, which has given further study opportunities through Kaltim Cemerlang Scholarships 2011, The LPDP (Lembaga Pengelola Dana Pendidikan) Ministry of Finance the Republic of Indonesia for funding this research and LPPOM MUI Kalimantan Timur for facilitating this research.

Citation

Prabowo, S., Abd Rahman, A., Ab Rahman, S. and Samah, A.A. (2015), "Revealing factors hindering halal certification in East Kalimantan Indonesia", Journal of Islamic Marketing, Vol. 6 No. 2, pp. 268-291. https://doi.org/10.1108/JIMA-05-2014-0040

Publisher

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Emerald Group Publishing Limited

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