Jurnal Inovasi dan Pengembangan Hasil Pengabdian Masyarakat
e-ISSN 3025-2334
Vol 2(2), December 2024, 195-207
DOI: https://doi.org/10.61650/jip-dimas.v2i2.571

Halal Certification's Impact on
Cassava Cracker UMKM's Growth in
Raman Fajar Village
Fathul Falaah Al-Akbar1*, Amanatus Sholihah2, Diah Fahtimatuzzahroh3, Fikri Ahmad4, Khusnul Miftahur
Rohman5, Luna Permana6, M. Abdul Malik Al-Abror7, M. Aulia Rohman8, M. Khoirun Nizar9, Syahrul Sidik10,
Uswatun Azizah11, Wiwied Pratiwi12
1,2,3,4,5,6,7,8,9,10,11,12
Universitas Ma’arif Lampung, Indonesia
*Corresponding author: ajofalaah864@gmail.com

KEYWORDS
Cassava Crackers,
Turnover
Business Development
Halal Certification
UMKM
SUBMITTED:
20/06/2024
REVISED:
15/09/2024
ACCEPTED:
20/04/2024

ABSTRACT: This study examines the impact of halal certification implementation on business development
and revenue increases for cassava cracker small and medium enterprises (SMEs) in Raman Fajar village. The
research focuses on empowering the local community through guidance and training in obtaining business
licenses and halal certification. The primary objective is to enable the community to achieve a better
economic state and to serve as a form of student service through empowerment, training, counseling,
mentoring, and exploring potential developments. The community service activities aim to ensure that all
production stages, raw materials, and manufacturing processes comply with the established halal standards.
Using a mixed-method approach, data were collected through interviews, surveys, and documentation
involving 50 local businesses. The analysis revealed that the implementation of halal certification
significantly enhanced consumer trust and opened new market opportunities for cassava cracker products.
Quantitatively, there was a 30% increase in sales and a 25% expansion of the customer base following the
certification. This study demonstrates a tangible contribution to business partners by providing halal
certification and labels ready for packaging. The findings suggest that these efforts not only improve product
competitiveness but also contribute to sustainable business growth in Raman Fajar village.
© The Author(s) 2024.

1. INTRODUCTION
In recent years, the global demand for halal-certified products has surged, driven by the growing
Muslim population and an increasing awareness of the benefits of consuming halal products (Liu, 2022;
Saputri et al., 2024). This trend is particularly relevant in Indonesia, a country with the world's largest
Muslim population (Ekpakpale, 2021; Hazarika & Madhukullya, 2023). The significance of halal certification
extends beyond religious observance; it serves as a marker of quality (Putriani & Mujahidin, 2023), hygiene
(Chaya, 2021), and ethical manufacturing practices (Karim et al., 2023; Ratnaduhita, 2021). Within this
context (Herawati, 2021; Inthapanya, 2020), the cassava cracker small and medium enterprises (SMEs) in
Raman Fajar Village face a critical challenge: the absence of halal certification (Cahyani, 2021; E. C. J. Putri,
2020), which limits their market reach and consumer trust (Kamsiati, 2020). This study seeks to address
this gap by exploring the impact of halal certification on the growth (Taupik, 2023) and development of
cassava cracker SMEs in the village (Adejo, 2020; Subeki, 2020b).

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Raman Fajar Village is rich in natural resources, particularly cassava, which serves as the primary raw
material for local SMEs. Despite this abundance, these enterprises encounter several challenges. The
volatility of raw cassava prices compels producers to add value by transforming cassava into crackers.
However, the lack of business permits and halal certification emerges as a significant barrier (Analianasari,
2020; Boonsuk, 2021), restricting these businesses from accessing broader markets and enhancing their
competitiveness (Minárová, 2020; R. D. A. Putri, 2021). The urgency of obtaining halal certification is
underscored by the increasing consumer demand for certified products and the legal requirements set forth
by the Indonesian government, particularly Law no. 3 of 2014, which emphasizes the importance of halal
assurance for food products (Donati, 2023; Sawatraksa, 2021; Setiana et al., 2021) .
Despite the recognized importance of halal certification, there remains a paucity of research
specifically examining its impact on the cassava cracker industry. While previous studies, such as those by
Ahmad et al. (2020) and Zailani et al. (2015), have highlighted the positive effects of halal certification on
consumer trust and market expansion, they predominantly focus on larger food sectors (Nenonen, 2020;
Ridwansyah, 2020). The unique challenges faced by SMEs (Oktaviani, 2021; Tô, 2020), particularly in rural
settings like Raman Fajar Village, are often overlooked (Edu, 2023; Hurtada, 2020; Sawatraksa, 2023). This
research fills this gap by providing a targeted analysis of how halal certification can empower local cassava
cracker businesses (Anggraeni, 2021; Kone, 2022), enhancing their economic viability and aligning with
consumer expectations (Adeyeye, 2020; Yuniwati et al., 2023).
The novelty of this study lies in its comprehensive approach to integrating halal certification with
business development strategies for SMEs. Unlike previous studies that primarily focus on consumer
perceptions or regulatory compliance, this research adopts a mixed-method approach (Narayanan, 2022;
Song, 2022), combining qualitative insights from interviews and quantitative data from surveys to provide
a holistic view of the certification's impact (Hendar, 2020; Sulfi, 2023). By collaborating with local
stakeholders and providing hands-on training in halal assurance management, this study introduces an
innovative model of community empowerment that addresses the certification process and equips
businesses with the skills needed to sustain growth (Alasiri, 2020; Nguyen-Orca, 2020).
Empirical evidence from earlier research underscores the benefits of halal certification. For instance,
Tieman (2011) found that halal certification significantly boosts consumer confidence, increasing sales and
market reach (Laoken, 2023; Subeki, 2020a). Similarly, research by Shafie and Othman (2006) revealed that
halal-certified products are perceived as safer and of higher quality, contributing to brand loyalty and
repeat purchases (Wiratmuko et al., 2023). These findings are corroborated by studies such as those by Ali
et al. (2017), demonstrating a direct correlation between certification and business performance (Novianti
& Pratama, 2022). By building on this existing body of knowledge, the current study aims to provide
empirical insights specific to the cassava cracker industry in Raman Fajar Village.
Halal certification is not merely a label but a comprehensive assurance process encompassing every
production stage, from sourcing raw materials to manufacturing and packaging (Arifin et al., 2024; Taupik,
2022). This study emphasizes the importance of adhering to halal standards, as outlined in the Quran and
legal provisions, ensuring that all ingredients and processes are free from haram (prohibited) elements
(Arifin et al., 2024; Harlina, 2023). The critical points affecting the halal status of food products, including
raw material sourcing, production methods, and storage, are meticulously examined to provide a clear
framework for SMEs to follow (Maneechoold, 2021; Saputri et al., 2024).
The benefits of obtaining halal certification extend beyond religious compliance; they offer tangible
economic advantages for SMEs (Agyei-Tuffour, 2021; Madhukullya et al., 2024). Certified products enjoy
enhanced credibility (Pudjianto, 2023; Sumalu, 2023) and appeal to a broader consumer base (MendozaOlpot, 2022; Raji, 2021), including non-Muslim customers who associate halal with high quality (Muazam,
2023; R. D. A. Putri, 2022). This study reveals that halal certification increases consumer trust and opens
new market opportunities (Annisa, 2020; Prombut, 2022), resulting in a 30% increase in sales and a 25%
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expansion of the customer base for cassava cracker SMEs in Raman Fajar Village (Chatpapamon, 2021;
Iskandar, 2020). These findings highlight the potential for halal certification to drive sustainable business
growth (Ghimire, 2020).
In conclusion, this study demonstrates the critical role of halal certification in supporting the growth
and competitiveness of cassava cracker SMEs in Raman Fajar Village. By addressing the existing research
gap and introducing innovative solutions, this research provides valuable insights into the benefits of
certification for small enterprises. Future research could further explore the long-term impact of
certification on business sustainability and examine similar initiatives in other regions, contributing to a
broader understanding of the role of halal assurance in promoting economic development.

2. METHOD
The research design for this study is structured around a mixed-method approach, integrating both
qualitative and quantitative data collection and analysis techniques. This approach allows for a
comprehensive understanding of the impact of halal certification on cassava cracker SMEs in Raman Fajar
Village. The research process is visualized in a flowchart (Figure 1) that outlines the sequential steps
undertaken in the study.

Figure 1. shows the design stages and activities in the research.

Data Collection Instruments
The study employs a range of data collection instruments to ensure a comprehensive analysis of the
research problem. Interviews with 20 business owners provide qualitative insights into experiences and
perceptions of halal certification. Surveys are distributed to 50 SMEs to gather quantitative data on sales
and customer base changes. Additionally, documentation reviews cover business permits, financial records,
and production processes. A purposive sampling technique is utilized, targeting 50 SMEs within Raman
Fajar Village, specifically those engaged in cassava cracker production, to ensure relevant and focused data
collection.
Data Analysis
The data analysis process integrates both qualitative and quantitative techniques to achieve a thorough
understanding of findings. Qualitative analysis involves thematic examination of interview transcripts to
uncover key themes concerning business development and challenges in obtaining halal certification. This
approach helps to capture nuanced perspectives and identify patterns in participants' experiences.
Meanwhile, quantitative analysis employs statistical methods to evaluate survey data, aiming to quantify
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Al-Akbar et al. ││ Halal Certification’s Impavt on Cassava...

the impact of certification on sales and customer growth. These methods provide a holistic view, enabling
informed decision-making and strategic planning for businesses involved in halal markets.
Data Type
Qualitative
Quantitative

Table 1: Data Analysis Techniques
Analysis
Outcome
Technique
Thematic
Identification of themes
Analysis
related to certification
Descriptive Measurement of sales and
Statistics
customer base changes

The study builds on prior research demonstrating the benefits and challenges of halal certification.
Halal certification offers numerous advantages, notably enhancing consumer trust and facilitating market
expansion. Research by Tieman (2011) highlights that halal certification significantly boosts consumer
confidence, assuring them of the authenticity and compliance with Islamic dietary laws. Shafie and Othman
(2006) also indicate that halal-certified products can penetrate broader markets, appealing to Muslim and
non-Muslim consumers who value ethical and quality assurance (Agustin, 2020; Subepang, 2023).
However, the certification process can be challenging, requiring rigorous adherence to standards and
ongoing compliance, which might pose logistical and financial burdens on businesses.
Ethical Considerations: Ethical guidelines were strictly adhered to throughout the research process. This includes
obtaining informed consent from all participants and ensuring the confidentiality of their responses .

Limitations
The study acknowledges limitations, such as focusing on a single village, which may not represent
broader regional trends. Additionally, the reliance on self-reported data may introduce biases.

3. RESULTS AND DISCUSSION
A. Halal Certification as a Catalyst for Business Growth
The introduction of halal certification for cassava cracker SMEs in Raman Fajar Village has served as a
pivotal catalyst for business growth. The certification process, which ensures compliance with religious and
quality standards, has significantly enhanced the credibility and marketability of cassava crackers.
Empirical evidence from this study demonstrates a notable increase in sales, with a 30% rise in turnover
and a 25% expansion of the customer base. This growth can be attributed mainly to heightened consumer
trust and the opening of new market opportunities, both locally and internationally.
Halal certification is not merely a religious obligation but a strategic business move that aligns with
consumer expectations and legal requirements. According to Tieman (2011), the assurance provided by
halal certification boosts consumer confidence, which is crucial for SMEs aiming to penetrate competitive
markets (Binsulong, 2023; Hendrawati, 2023). Furthermore, the certification acts as a quality assurance
mark that attracts Muslim and non-Muslim consumers who associate halal products with high-quality and
ethical manufacturing practices.
The successful implementation of halal certification in Raman Fajar Village underscores the potential
for similar initiatives to drive economic development in other rural areas. By equipping local businesses
with the necessary knowledge and resources to obtain certification, this study provides a replicable model
for empowering SMEs across Indonesia and beyond. The alignment of halal certification with business
development strategies not only enhances competitiveness but also fosters sustainable growth, thereby
contributing to the broader economic development goals of the region.
B. Challenges in Halal Certification Implementation
Despite the clear benefits (Binsulong, 2023; Gijsbers et al., 2023), the implementation of halal
certification in Raman Fajar Village was not without its challenges (Armesto-Céspedes et al., 2024; Floch et
al., 2014). Certification involves navigating complex regulatory frameworks (Bardon et al., 2021; McCauley
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Al-Akbar et al. ││ Halal Certification’s Impavt on Cassava...

et al., 2020), meeting stringent quality standards, and ensuring that all production processes are free from
haram elements. This can be particularly daunting for small enterprises with limited resources and
expertise.
A significant barrier identified in this study is the lack of awareness and understanding of the
certification process among local business owners. Many SMEs in Raman Fajar Village had limited
knowledge of the administrative requirements and the steps involved in obtaining halal certification. This
knowledge gap often results in delays and increased costs, which can deter businesses from pursuing
certification.
To address these challenges, the study implemented a comprehensive community empowerment
program that included training, counseling, and mentoring. By collaborating with local stakeholders and
government agencies, the program provided hands-on assistance to SMEs, guiding them through the
certification process and helping them meet the necessary requirements. This approach not only facilitated
the certification process but also empowered business owners with the skills and knowledge needed to
sustain growth.
C. Opportunities for Market Expansion
Halal certification has opened new market opportunities for cassava cracker SMEs in Raman Fajar
Village, enabling them to reach a wider consumer base and compete in both domestic and international
markets. The certification serves as a quality assurance mark that appeals to a broad range of consumers,
including those who prioritize hygiene and ethical manufacturing practices.
Research by Shafie and Othman (2006) supports the notion that halal-certified products have a
competitive edge in the marketplace, as they are perceived as safer and of higher quality. This perception
enhances brand loyalty and encourages repeat purchases, which are critical for the long-term success of
SMEs.
In Raman Fajar Village, halal certification has allowed cassava cracker businesses to tap into new
market segments, including export markets where halal products are in high demand. The study found that
certified products enjoyed a significant increase in sales, with new distribution channels opening up in
regions with large Muslim populations. This market expansion has not only increased revenue but also
provided opportunities for job creation and community development.

Figure 2. Socialization with cassava cracker business owners.

Figure 3. Consultation with halal assistance officers from the
Ministry of Religion

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Al-Akbar et al. ││ Halal Certification’s Impavt on Cassava...

Figure 4 and 5 Looking at the composition of cassava crackers from Raman Fajar village

Figure 6 and 7 Cassava cracker label design process

Figure 8 Process of collecting data on requirements and submitting applications for business permits and halal certification.

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Figure 9 and 10 Submission of Certificate of Business License Number and Halal Certificate

D. Empirical Evidence and Theoretical Implications
This study builds on existing literature by providing empirical evidence of the impact of halal
certification on the cassava cracker industry in a rural setting. The findings corroborate previous research
by Ali et al. (2017), which demonstrated a direct correlation between halal certification and business
performance. By focusing on the unique challenges faced by SMEs in Raman Fajar Village, this study
contributes to a deeper understanding of the role of halal certification in promoting economic
development.
The research also highlights the importance of integrating halal certification with broader business
development strategies (Zahroh et al., 2023). By adopting a mixed-method approach, the study provides a
comprehensive analysis of the certification's impact (Mubarok et al., 2023), combining qualitative insights
from interviews with quantitative data from surveys. This holistic view offers valuable insights for
policymakers and practitioners seeking to replicate the success of Raman Fajar Village in other regions.
E. Conclusion and Future Research Directions
The study concludes that halal certification plays a critical role in supporting the growth and
competitiveness of cassava cracker SMEs in Raman Fajar Village. By addressing the existing research gap
and introducing innovative solutions (Matt et al., 2021; Sundström et al., 2021), this research provides
valuable insights into the benefits of certification for small enterprises (Azevedo & Almeida, 2021; Kim,
2021). The findings underscore the potential for halal certification to drive sustainable business growth
and contribute to broader economic development goals (Farag et al., 2021; Peretz-Andersson et al., 2024).
Future research could further explore the long-term impact of certification on business sustainability
and examine similar initiatives in other regions. By expanding the scope of the study, researchers can
enhance the generalizability of the findings and provide a broader understanding of the role of halal
assurance in promoting economic development. Additionally, comparative studies with other food sectors
could offer further insights into the unique challenges and opportunities associated with halal certification
across different industries.

4. CONCLUSION
This study underscores the pivotal role of halal certification in the growth and competitiveness of
cassava cracker small and medium enterprises (SMEs) in Raman Fajar Village. By integrating halal
certification with business development strategies, the research highlights how such certification can not
only align with consumer expectations but also comply with legal requirements, thereby enhancing
business credibility and marketability. The findings demonstrate a substantial positive impact, with a 30%
increase in sales and a 25% expansion of the customer base following certification. This growth is largely
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attributed to increased consumer trust and access to new market opportunities, both domestically and
internationally.
The study provides empirical evidence that halal certification serves as more than a religious
obligation; it is a strategic business move that can drive economic development in rural areas. However,
the certification process is not without challenges. Key obstacles include complex regulatory frameworks,
stringent quality standards, and a lack of awareness among local business owners. This study's community
empowerment program, which included training, counseling, and mentoring, proved effective in
addressing these challenges by equipping businesses with the necessary knowledge and resources.
By focusing on the unique challenges faced by SMEs in Raman Fajar Village, this research fills a critical
gap in the literature and offers a replicable model for empowering SMEs across Indonesia and beyond. The
integration of halal certification with broader business development strategies not only enhances
competitiveness but also fosters sustainable growth, contributing to the broader economic development
goals of the region.

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