Mandatory Halal Certification and MSME Viability in Indonesian Tourism: Economic Impact Assessment Post-October 2024 Enforcement

Abstract

Indonesia's mandatory halal certification regime — anchored in Law No. 33 of 2014 on Halal Product Assurance and operationalized through Government Regulation No. 42 of 2024 — entered its enforcement phase on October 18, 2024, constituting the world's most comprehensive mandatory halal product assurance system for the country with the world's largest Muslim population. The phased enforcement architecture — requiring immediate compliance from medium and large enterprises while extending the micro and small enterprise (MSME) deadline to October 17, 2026 — reflects the government's recognition that the approximately 64 million registered Indonesian MSMEs, which contribute 61 percent of GDP and absorb 97 percent of the workforce, were structurally unready for universal compliance. Only an estimated 4.4 million MSME products had secured halal certification by mid-2024 against a government target of 10 million. This systematic literature review (SLR) applies PRISMA 2020 protocols to analyze 36 peer-reviewed publications and authoritative regulatory sources from 2023 to 2026, organized across five thematic clusters: (1) the regulatory architecture — evolution from voluntary to mandatory certification and the GR 42/2024 dual-deadline structure; (2) MSME compliance barriers in tourism — financial, informational, procedural, and geographical dimensions; (3) economic impact mechanisms — market access, competitiveness, consumer trust, and supply chain restructuring; (4) halal tourism destinations and MSME integration — the Lombok, Bali, West Sumatra, and Yogyakarta case contexts; and (5) governance solutions — SEHATI, Self-Declare, digital certification, and ABCD (Asset-Based Community Development) approaches. A critical synthesis reveals what this review terms the Halal Compliance Paradox: mandatory certification simultaneously represents the most significant market access opportunity and the most acute operational threat facing Indonesian tourism MSMEs, with the bifurcated enforcement timeline creating a two-tier tourism economy that may widen pre-existing inequality between formal and informal sector operators. The review proposes a Graded Halal Tourism Compliance (GHTC) Framework as an operational policy model for equitable MSME integration into the mandatory halal certification ecosystem.

Keywords: mandatory halal certification; MSME; Indonesian tourism; BPJPH; GR 42/2024; SEHATI; halal compliance; culinary tourism; Lombok; economic impact; halal assurance; food and beverage; regulatory compliance