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THE IMPLEMENTATION OF LEGAL PROTECTION AND CERTAINTY PRINCIPLES FOR CONSUMER OF FOOD AND BEVERAGE RELATED TO MICRO AND SMALL BUSINESSES IN ACEH

Authors:

Abstract

The Special Province of Aceh government has legal pluralism in its administrations. In its governance system, Islamic law and customary law are also applied besides the state law. Ulama (Islam Scholars) also have important roles in determining regional policies. Actually, against Islamic law, the process of food and beverage trade by micro and small business actors still uses hazardous and prohibited materials such as formaldehyde, borax and RhodamineB. This study aims to analyze and to explain the application of protection and legal certainty of food consumers and beverages marketed by Micro, Small and Medium Enterprises (MSMEs) associated with the halal product guarantee concept. It also explains the concrete policies adopted by the Government of Aceh as a competitive consumer protection standard. This type of research is sociological juridical, which observes reactions and interactions when the norm system relating to consumer protection and the guarantee of halal products works in the community. The approach was used sociologically and qualitatively. Primary research data wasgathered from social facts processed by using descriptive analysis methods and was presented in a qualitative form. The research results show factors of the lack of consumer’s protection, namely: business actors’ difficultiesin obtaining capital, knowledge, and skills, lack of product innovation, difficulties in distributing goods, no product-branding, no consumer-loyalty program, lack of understanding of the rules of consumer protection and halal product guarantees, the traditionalaccounting records, not having business license, lack of local government supervision and the disharmonized between laws and regulations. Concrete policies stipulated by the Government of Aceh arethe ease of business licensing procedures and acceleration of ownership of non-paid halal certificates, especially for processed food business actors produced by home industry. Thus it is recommended to establish a Dispute Settlement Agency (BPSK), Non-Governmental Protection Institutions (LPKSM) in each regency/city; to conduct socialization, education as well as promotion of halal product guarantees in various events; to collaborate with the private sector as an assisting partner that can be used as a mentor for micro and small business actor in anticipating the industrial revolution 4.0. Key words: Application of the protection and legal certainty principle, Consumer protection, Micro and small businesses, Halal product guarantee in Aceh.
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THE IMPLEMENTATION OF LEGAL PROTECTION AND
CERTAINTY PRINCIPLES FOR CONSUMER OF FOOD
AND BEVERAGE RELATED TO MICRO AND SMALL
BUSINESSES IN ACEH
Sri Walny Rahayu 1 , Teuku Ahmad Yani2*
1
Associate Professor, Dr. S.H., M. Hum., Specializing in Business Law Studies
2 Associate Professor, Dr. S.H., M. Hum., Specializing in Business Law Studies.
Email: ayoe_armans@unsyiah.ac.id
Abstract: The Special Province of Aceh government has legal pluralism in its
administrations. In its governance system, Islamic law and customary law are also
applied besides the state law. Ulama (Islam Scholars) also have important roles in
determining regional policies. Actually, against Islamic law, the process of food and
beverage trade by micro and small business actors still uses hazardous and prohibited
materials such as formaldehyde, borax and RhodamineB. This study aims to analyze and
to explain the application of protection and legal certainty of food consumers and
beverages marketed by Micro, Small and Medium Enterprises (MSMEs) associated with
the halal product guarantee concept. It also explains the concrete policies adopted by the
Government of Aceh as a competitive consumer protection standard. This type of
research is sociological juridical, which observes reactions and interactions when the
norm system relating to consumer protection and the guarantee of halal products works
in the community. The approach was used sociologically and qualitatively. Primary
research data wasgathered from social facts processed by using descriptive analysis
methods and was presented in a qualitative form. The research results show factors of
the lack of consumer’s protection, namely: business actors’ difficultiesin obtaining
capital, knowledge, and skills, lack of product innovation, difficulties in distributing
goods, no product-branding, no consumer-loyalty program, lack of understanding of the
rules of consumer protection and halal product guarantees, the traditionalaccounting
records, not having business license, lack of local government supervision and the
disharmonized between laws and regulations. Concrete policies stipulated by the
Government of Aceh arethe ease of business licensing procedures and acceleration of
ownership of non-paid halal certificates, especially for processed food business actors
produced by home industry. Thus it is recommended to establish a Dispute Settlement
Agency (BPSK), Non-Governmental Protection Institutions (LPKSM) in each
regency/city; to conduct socialization, education as well as promotion of halal product
guarantees in various events; to collaborate with the private sector as an assisting partner
that can be used as a mentor for micro and small business actor in anticipating the
industrial revolution 4.0.
Keywords: Application of the protection and legal certainty principle, Consumer
protection, Micro and small businesses, Halal product guarantee in Aceh.
Introduction
Food and drink are one of the basic human needs. The availability of adequate, safe,
quality, nutritious food and drinks is the main prerequisite to realize dignified human
beings and quality human resources. The quality of human resources is determined by
the quality of the food and drinks they consume. Thus, it is necessary to optimally
providesafe and nutritious foods and drinks that are affordable, healthy, and halal
guaranteed for consumers. The halal-ness of food and beverage products can be
applied without ethnic, ethnic, cultural and religious restrictions.
The progress of science and technology in the food industry has affected domestic and
international food trade, leading to an increasingly diverse type of food circulating in
society, either locally produced or imported. Food consumed by the public passes
through a chain of processes of production, storage, transportation, circulation until
consumption by consumers.
The Government has empowered Micro, Small and Medium Enterprises (MSMEs),
and formed Law Number 20 of 2008 concerning Micro, Small and Medium
Enterprises (MSME Law) to realize the economic growth, equity, job creation, and
poverty alleviation.
The business development of MSME players was obtained from the Office of
Cooperatives and Small and Medium Enterprises in Aceh Province 2016.There were
75,207 MSME units in Aceh, increased fairly high compared to 2014, which only
amounted to 48,882 units. On December 31, 2016, there were total 53,216 Units of
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micro-business operators. Of which, 20,258 units (71%) were small business groups
and 1,733 units (27%) were medium-sized businesses (diskopUMKMAceh: 2017).
Indonesia also has Law No. 8 Year 1999 concerning Consumer Protection (The
Consumer Protection Act). However economical efforts in Indonesia are considered
insufficient to realize prosperity for all Indonesian people. In its implementation of the
substance, both in terms of norms and economic development goals, does not
putconsumersof food and beverage in an advantages condition. They have not received
maximum protection.
Other regulations relating to consumer protection, are Law Number 33 Year 2014
concerning Halal Product Guarantee (JPH Law), Law Number 7 Year 2014 concerning
Trade (Trade Law), Law Number 23 Year 2014 concerning Regional Government
(Local Government Law), Law Number 18 Year 2012 concerning Food (Food Law),
Law Number 36 Year 2009 regarding Health.
The implementation of the principles in law of consumer protection and certainty in
the context of the organizing system in the Province of Aceh has startedwith Law
Number 44 Year 1999 concerning the Implementation of the Privileges of the Province
of the Special Region of Aceh (PrivilegesProvince Aceh Law), Law Number 11 Year
2006 (UUPA Year 2006), Government Regulation Number 28 Year 2004 concerning
Food Safety, Quality and Nutrition, Aceh Qanun Number 11 Year 2002 concerning the
Implementation of Islamic Sharia in the Field of Aqeedah, Worship and Symbols
Islamic( Islamic Law Qanun), Aceh Qanun Number 8 Year 2016 concerning Halal
Product Guarantee System (Qanun SJPH), and other regulations relating to MSMEs
and consumer protection and halal product guarantee systems. This shows that there
are adequate written norms in Indonesia, especially in the Province of the Special
Region of Aceh.
The basis for the issuance of Law Number 44 Year 1999 regarding the
ImplementationPrivileges Provincial of Aceh (Aceh Privileges Law) is Article 18B
paragraph (1) of the 1945 Constitution. In Aceh applied arethe state law system, the
Islamic legal system, the customary law system, and the ratified international legal
system (Constante, Daniel, & Flor, 2019; Rahayu et al., 2016; Rahayu, 2018).
Based on the Islamic legal system (sharia law), and the Islamic Sharia Qanun, Qanun
Number 8 of 2016 concerning Halal Product Guarantee System was established.
Qanun (SJPH Qanun). The SJPH Qanun regulates the Aceh Ulama Consultative
Assembly (MPU), coordinating with the Food, Drug and Cosmetic Assessment
Institute of the Aceh Ulama Consultative Assembly (LPPOM MPU Aceh). This is
done in the role of issuing halal certificates and guaranteeing the halal status of all food
and beverage products circulated and traded in Aceh Province, (KN Sofyan, 2014).
Concerning halal product produced by MSMEs, a product of public policy, the Halal
Product Guarantee Act (JPH Law) has created legal loopholes and problems. Since
halal certificates are not compulsory for all business actors, MSME players generally
do not take care of halal certification, especially small and medium scale industries
(Khushnud, & Qingjie, 2020; Sudarmiatin, 2019; Widodo, 2010). In addition, since
Indonesia as a participating country of the ASEAN Economic Community (AEC), the
negative impact of food and beverage businesses controlledby large business actors
most likely happens.
This study aims to analyze and to explain the application of protection and legal
certainty of food consumers and beverages marketed by Micro, Small and Medium
Enterprises (MSMEs) associated with the halal product guarantee concept. It also
explains the concrete policies adopted by the Government of Aceh as a competitive
consumer protection standard.
1. Methods
This research is a sociological juridical study, observing the reactions and interactions
that occur when the norm system works in society (law in concreto) and what is
behindit from various applications of various legislation (behind the law) (Fajar &
Achmad, 2010), and the EMSM Law as well as the Consumer Protection Act so that
the principle of protection and legal certainty for food and beverage consumers in the
Province of Aceh can be approached sociologically and qualitatively (Fajar &
Achmad, 2010). Using a qualitative approach to gatherdescriptive-analytical data, the
researchers used data stated by respondents in writing or verbally and studied
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behaviorsas an intact object of research. Data taken through a qualitative approach
were validated from its quality and relevance so that it can be reliable.
Field data collection through observation, in-depth interviews (depth interviews) with
respondents and informants wasperformed by using interview guidelines as a research
instrument (Soekanto & Mamudji, 1990). Data processing and analysis were done by
drawing conclusions based on Primary Data and Secondary Data and then analyzingby
using qualitative and sociological methods. As a research procedure that produces
descriptive data in the form of words and oral descriptions of people and observable
behavior (Moleong, 2007).
2. Results
2.1 The application of the principle of consumer’s protection and legal certainty of
food and beverage are associated with the concept of halal product guarantee
The openness of the national market as a result of the process of economic
globalization requires a guarantee of the improvement of people's welfare as well as
certainty over the quality, quantity, and safety of goods and/or services in the market.
Although a set of rules has been held in consumer protection in Indonesia, awareness,
knowledge, care, ability, and independence of consumers to protect themselves and
foster the attitude of responsible business actors are still not optimal and optimal in
practice.
The existence of Law No. 23 of 2014 concerning Regional Government (UU Pemda)
results in the transfer of authority over sub-affairs of standardization and consumer
protection to the authority of the Provincial Government. Therefore, the Government
must pay special attention to national trade activities.
Another thing is the protection of consumers in the field of food and drink must meet
the safety and quality standards of food, as regulated in Health Act Article 111. This is
done to fulfill consumer rights, namely the right of comfort, security and safety in
consuming goods and / or services.
Article 155 paragraph (1) of Law Number 11 Year 2006 concerning Aceh Government
(UUPA 2006) states that "The economy in Aceh is directed at increasing productivity
and competitiveness for the realization of prosperity and welfare of the people by
upholding the values of Islam, justice, equity, people's participation and efficiency in
sustainable development patterns. This causes the Government of Aceh and District
and City Governments in Aceh to have broad authority for economic development in
Aceh, including the strengthening of business actors ".
Therefore, the Aceh Government is obliged to protect the public from consuming non-
halal food, drinks, and medicines as well as non-halal cosmetics, biological chemical
products, and genetic engineering products. Norms of the rules contained in the 2006
BAL are followed up through Article 23 of the Aceh Qanun Number 8 Year 2014
concerning the Principles of Islamic Sharia (Islamic Law Qanun), "The Government of
Aceh is obliged to implement a halal guarantee system for goods and services
produced and circulating in Aceh whose implementation is regulated by the Aceh
Qanun ".
The implementation of consumer protection by the Government of Aceh for Muslims
under the Islamic Sharia Qanun and all Acehnese people residing in Aceh without
looking at certain religious and ethnic groups issued Qanun Number 8 Year 2016
concerning Halal Product Guarantee System (Qanun SJPH).
The SJPH Qanun is a form of responsibility for the Government of Aceh for halal
products traded, both from and outside Aceh. The SJPH Qanun also regulates traded
products to meet hygienic standards. Qanun SJPH in protecting and providing
guarantees to consumers and goods traded by business actors based on the principles of
protection, justice, legal certainty, accountability and transparency, effectiveness and
efficiency, and professionalism. The guaranteed implementation of Halal Products is
aimed at providing comfort, security, safety, and certainty in the availability of
consumer Halal Products as well as increasing added value for Business Actors to
produce and sell Halal Products.
Business actors in the Halal Assurance System Qanun cover all business activities
from upstream to downstream. Business actors are required to submit applications for
halal certification for products that have not been halal certified; Provide true, clear
and honest information; Maintain the halal process of the product; Renew the halal
certificate ofexpiration; Report changes to the composition of the material to the Aceh
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MPP LPPOM; Display the LPPOM MPU Aceh Halal Certificate to easily read by
consumers; and Include the halal logo of the Aceh MPP LPPOM on the product
packaging with a visible size, (Article 33 SJPH)
Prohibition for Business Actors is regulated by Article 35 of the SJPH Qanun,
Producing and/or trading products that are not halal/not halal-certified; Include a Halal
Logo on product packaging that has not been halal certified; and/or Provide
information that is not following the laws and regulations.
Business actors who do not meet the provisions referred to in Article 34 and Article 35,
are subjected to administrative sanctions in the form of verbal reprimands; written
warning; not granted or revoked the production license; no distribution permit has been
granted or revoked in Aceh; revocation of halal certificate; no business license is
revoked or revoked; and/or administrative fines. Further provisions regarding
administrative sanctions are regulated by a Governor Regulation. (Article 36 SJPH
Qanun).
Barriers factors that can be changed into challenges for MSMEs in the food and
beverage sector in Aceh Province face the industrial revolution 4.0 as follows:
2.1.1 Capital difficulties
MSMEs often have difficulty finding funding capital from banks due to the many
requirements that have not yet been met. Even though the MSME Law regulates the
ease of obtaining business capital from banks by regulating the absence of
collateral/collateral, banks make clauses that require collateral for MSMEs in credit
agreement contracts.
2.1.2 Knowledge and skills for raising enterprises
The lack of knowledge of MSME entrepreneurs about good business management
makes it difficult to develop businesses. MSMEs only focus on producing goods,
without thinking about how the business expansion strategy is even greater.
2.1.3 Lack of product innovation
One of the reasons for the difficulty of MSME products competing in foreign markets
is the low competitiveness of products. Regarding the price offered, MSME products
in Aceh are still far from the quality offered by national or foreign products.
2.1.4 Difficulties in distributing goods
Many MSMEs have not had the network to distribute their products. Most only focus
on distributing goods to relations.
2.1.5 Un-maximized online-marketing
How to do online marketing is still a challenge for MSMEs today in Aceh. This is due
to the lack of knowledge of using the internet and adapting technological
developments. Even though many MSME players had marketed their products online
through social media, sites, marketplace but the effort as not as much as they need to
gain the optimal result.
2.1.6 Lack of understanding of branding (registered trademarks)
Although maintaining the quality of branding is very important, not many MSME
entrepreneurs are aware of the importance of branding for their products and
businesses. Thus, MSMEs only focus on selling, without thinking about how the
quality of the brand of its products.
2.1.7 Not conducting consumer loyalty programs
MSMEs do not put great attention in creating consumer loyalty programs, such as
regular promos, registration member, and the consumer community. Maintaining
customer loyalty is very important. The more often the MSMEs do the customer
loyalty program, the stronger customer loyalty will be. Customers will repeat orders
and even voluntarily promote MSME perpetrators' products individually. MSMEs have
not understood nor practiced the rights and obligations of consumers and business
actors.
2.1.8 Still relying on manual accounting
UMKM performers stilldo accounting manually. This manual bookkeeping is prone to
lose, damage, and even recap errors.
2.1.9 Not having a mentor
Without having a business mentor, an MSME entrepreneur will have difficulty to
develop and make product innovation.
2.1.10 Not having a business license
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Many of the MSMEs business have not had a business license. The majority of
MSMEs also face challenges in the field of knowledge regarding aspects of legality
and licensing, including requirements to how the process is taken in the process of
managing their business license.
2.1.11 Enforcement of weak sanctions
Even though Indonesia nationally has several regulatory instruments concerning
Consumer Protection, food security guarantees, the Halal Product Guarantee Act, and
Trade Laws that strongly protect consumers, the effectiveness of these laws requires
commitment, synergy, and socialization continuous education involving various
sectorial elements.
The eleven things that have been described above are the application of the principle of
protection and legal certainty for consumers in the Province of Aceh during the
industrial revolution era 4.0. Number 44 of 1999, Qanun of Islamic Sharia and Qanun
of Halal Product Guarantee Systems.
2.2 Application of policies of the concrete government of aceh as competitive
consumer protection standards
The enactment of special autonomy in Aceh, regulated by the BAL 2006, Article 125
paragraph (1) and (2), mentioned thatSyari'atIslam (Islam principles) implemented in
Aceh include Aqidah, Syariah and morals. Furthermore, Syari'at Islam as referred to in
paragraph (1) includes worship, ahwal al-syakhshiyah (family law), muamalah (civil-
law), jinayah (criminal law), qadha’(justice), tarbiyah (education), da'wah (preach),
syiar (talk), and the defense of Islam.
The implementation of Islamic Sharia in Aceh is not only the personal and community
responsibility of people living in Aceh but also based on the provisions of Article 127
of the 2006 BAL Act.It states that "that responsibility also rests with the Aceh
Government and district/city governments".
Following the concept, both the central government and regional governments have the
authority to make arrangements so that the relationship between business actors and
consumers can be realized fairly. Most importantly, the constitution of the idea of a
'welfare state' (Asshiddiqie, 2010).
Thus, healthy either competition or unfair competitioncan occur between business
actors. Deception can be in the form of reducing the price of goods while the quality is
lower than promised, or reducing the amount of the dose or reducing the quality of
goods and the promised quantities. Both of which have been detrimental to consumers,
sincetheydo not get what was promised.
The following outlines the policies of the Aceh Regional Government in the field of
food industry undertaken by the small and medium micro industries, as follows:
2.2.1 Ease of licensing
Every business actor is obliged to have a business license from the Government, either
from the central government or regional governments at the provincial or district/city.
Licensing is often a barrier because of the long bureaucracy that must be taken by the
MSMEs. For this reason, the regents and mayors at the research location have made
efforts to anticipate this problem. Simplifying and accelerating the licensing process
were done by integrating licensing services under the Investment and One-Stop
Integrated Services Office. The office is specifically focused on serving requests for all
permits authorized by regent/mayor to give MSME actors’ integrated services for all
types of licensing. (Mursidi, SH, Head of Legal Division, Central Aceh District,
interview results, Mai 2019).
This policy is expected to cut bureaucracy, which previously had many agencies to
take care of the licensing. (Muchlis, SH, Head of the Banda Aceh City Investment and
Integrated Services Office, interview results).
2.2.2 Acceleration of halal certificate ownership by business actors
Business actors are required to apply for a halal certificate for their products. The
certificatesof halal guarantee that halal food and drinks are certainly healthy, while
those that are safe, healthy and clean are not guaranteedas halal.
Halal food and drink is a demand in Islam. Halal food and drinks are not only in the
raw material but also in the production process. (Deni Candra, Secretary of LPPOM
MPU Aceh, interview results).
It includes legal requirements, as well as downstream business actors covering all
businesses whose activities produce, and market, both locally processed and packaged.
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One aspect of the acceleration of the realization of halal food and beverages traded in
Aceh is the Government. Article 11 of the SJPH Qanun stipulates that "LPPOM MPU
Aceh is functionally subordinate and responsible to the Chairperson of the Aceh MPU
and administratively responsible to the Head of the Aceh MPU Secretariat". Therefore,
the Government of Aceh provides human resources, facilities and infrastructure,
funding sources, cooperation, and halal product assurance information systems for the
LPPOM MPU Aceh.
In granting halal certificates, LPPOM MPU has not quoted fees. However, in the
future, the halal certificate will incur a certificate fee (Deni Candra, Secretary of the
Aceh MPP LPPOM, interview result, 19 June 2019).
The pattern of assistance from the Government of Aceh is a breakthrough. This is not
regulated in the MSME Law. It only looks at the necessity of local governments to
facilitate MSME actors to obtain licensing facilities and ease of obtaining credit or
financing from banking institutions.
Besides, by the SJPH Qanun, the Government of Aceh has also tried to make a
breakthrough by cooperating with big business players in financing halal certification
for micro and small businesses. This was confirmed in Article 44 of the SJPH Qanun,
"which requires companies operating in Aceh, to finance Halal Certification for micro
and small businesses as a form of corporate social responsibility". This obligation is in
line with the provisions of Article 74 of Law Number 40 the Year 2007 concerning
Limited Liability Companies.
3. Conclusion
Factors that cause MSMEs in the food and beverage sector unable to protect their
consumers in accordance with positive legal norms in Indonesia are business actors’
difficulties in obtaining capital, knowledge, and skills, lack of product innovation,
difficulties in distributing goods, no product-branding, no consumer-loyalty program,
lack of understanding of the rules of consumer protection and halal product guarantees,
the traditional accounting records, not having business license, lack of local
government supervision and the disharmonized between laws and regulations.
Concrete policies stipulated by the Government of Aceh are the ease of business
licensing procedures and acceleration of ownership of non-paid halal certificates,
especially for processed food business actors produced by home industry.
Thus it is recommended to establish a Dispute Settlement Agency (BPSK), Non-
Governmental Protection Institutions (LPKSM) in each regency/city; to conduct
socialization, education as well as promotion of halal product guarantees in various
events; to collaborate with the private sector as an assisting partner that can be used as
a mentor for micro and small business actor in anticipating the industrial revolution
4.0.
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Article
The primary problem in this study is how to law enforcement and the protection of consumer's rights against the certification and labeling of halal products according to UUJPH. The second problem to consider is the factors that causing young enterpreneurs to delay certification and halal product labeling on their products. This is a normative juridical research with a complementary juridical empirical data. The study points out that: first, until now there has been no law enforcement and no collective protection of consumer rights on the certification and labeling of halal products. To complicate matters, there is lack of coordination between ministries and agencies by MORA RI. Second, some of the factors that cause the enterpreneurs to delay halal certification on their products are the facts that: i) UUJPH cannot be implemented operationally because the Government Regulation (PP) has not been issued; ii) BPJPH which is the mandate of UUJPH has not been established; iii) Business actors find it difficult to certify some kinds of their products, such as pharmaceutical products since the raw materials are imported from abroad; iv) There is a reatively poor public awareness of consumers of halal products since they do not prioritize halal factor in selecting and purchasing a product.
Dualisme penelitian hukum: normatif & empiris
  • M Fajar
  • N D Y Achamd
Fajar, M., & Achamd, N. D. Y. (2010). Dualisme penelitian hukum: normatif & empiris. Yogyakarta, Indonesia: Pustaka Pelajar.
Metodologi penelitian kualitatif
  • L J Moleong
Moleong, L. J. (2007). Metodologi penelitian kualitatif. Bandung, Indonesia: Remaja Rosdakarya.
Penyelesaian sengketa perdata adat oleh peradilan adat melalui mekanisme alternatif penyelesaian sengketa di aceh dalam rangka pembentukan sistem hukum peradilan adat di Indonesia. Paper presented at Laporan Tahunan Penelitian Unggulan Perguruan Tinggi (PUPT)
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Financial literacy and SMEs' potential entrepreneurs: The case of Malaysia
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Place Branding: Place Branding: An Alternative Model for Empowering Small and Medium Enterprises (SMEs)
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The halal product guarantee law must be revised
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