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Infaq and Shodaqoh as Self-Financing Sources for
Indonesian Halal Products Assurance in Food
Security: A Literature Study
*Ikomatussuniah
Centre for Policy Research and
International Studies (CenPRIS)
Universiti Sains Malaysia
Penang, Malaysia
Faculty of Law
University of Sultan Ageng Tirtayasa
Indonesia
iko@untirta.ac.id,
ResearcherID: O-6245-2018
Mohammad Reevany bin Bustami
Centre for Policy Research and
International Studies (CenPRIS)
Universiti Sains Malaysia
Penang, Malaysia
reevany@usm.my
Abstract- Food is a basic necessity that is private
and has the protection of the state regarding its
availability, security, and distribution so that
consumers get good food access. Indonesia’s
protection regulated in civil laws, namely the Act of
consumer protection and halal product assurance.
Muslim consumer protection of halal food is an issue
when they have lack access to the information and
certainty on label and certification of halal products.
The difficulty arises when the community has limited
funds, while they have to self-sufficient in finance as a
requirement for halal checking food products in the
laboratory. With literature study, the researcher
examined a possibility of self-financing sources from
infaq (donation) and shodaqoh (charity) of Zakat
Agency (Badan Amil Zakat/BAZ) as a financial source
for assessing the product whether it is halal or haram
in the lab. This can be as one way out to check the
products for Muslim consumers who get limited
financials to do so. Due to self-financing sources based
on infaq and shodaqoh, people can protect themselves.
Furthermore, the certainty of consumer protection
laws related to halal product assurance can
accomplish to support food security.
Keywords: consumer protection, halal product
assurance, infaq; shodaqoh, Amil Zakat Agency, food
security
I. INTRODUCTION
Based on Act No. 18/2012 on Food [1], the
government protect the people of halal food products in
general, and in specific legislation, it is established in Act
No. 33/2014 on Halal Product Assurance [2]. Regarding
the rights of Muslim consumers to obtain halal food
products which are based on halal labels, the community
has difficulty in clarifying the truth of the labels and
halal certificates of the food products. This is because of
limited access and the ability to verify it to related
parties. The parties that play a role are the Assessment
Institution of Food, Drugs, and Cosmetic Majelis Ulama
Indonesia (Lembaga Pengkajian Pangan, Obat-obatan,
dan Kosmetika Majelis Ulama Indonesia/LPPOM MUI)
and / or the Halal Product Assurance Agency (Badan
Penyelenggara Jaminan Produk Halal/BPJPH). These
limitations including limited funds, where people have to
spend no small amount of self-help to check the truth of
the label and certificate of halal food product in the
laboratory. This affected the legal certainty of rights of
Muslim consumers in obtaining protection for halal
thayyib products. Halal products for Muslim consumers
are products that comply with Islamic principles, and for
the non-Muslim consumers, it describes the hygiene,
quality and safety products based on the Holistic Halal
Assurance Management System [3, 4, 5].
Related to self-financing for plaintiffs is a problem in
the field because not all communities have sufficient
funds to check the labels and certificates of halal food
products on the market. In this study, the researchers
analyzed possibilities of infaq and shodaqoh as self-
funding sources that can be utilized for the benefit of the
wider Muslim community fatherly public good. Infaq
and shodaqoh are expected as a source of research costs
in ensuring the label and certificate of halal food
products in the laboratory.
Indonesia is an archipelago with more than 17,000
islands with a population of 270 million inhabitants,
1,340 ethnics and 6 major religions [6]. The official
religions and beliefs recognized and protected by the
state are Islam, Protestant, Catholics, Buddhist, Hindu,
and Konghucu. Practice their faith in each, state
guarantees and protects freedom of religion based on the
ideology of Pancasila and Indonesia’s Constitution 1945.
Muslims are the largest population with around 80 per
cent, and they run daily life under the Islamic values
based on the Qur'an, and it regulates basic principles that
derived for human being’s sake. One of the principles is
about halal thayyib food laws that explain Muslim’s
obligation in daily practice for purchasing and
consuming food. According to QS. Al-Baqarah:168, “O
mankind! Eat of that which is lawful and good on the
earth and follow not the footsteps of Shaytan (Satan).
Verily, he is to you an open enemy”. Furthermore,
producing and consuming in halal thayyib food values
are Muslim’s obligation in daily practice. Article 4 of
Act No. 8/1999 on Indonesia Consumer Protection
describes consumers’ rights on getting the right to
comfort, security and safety in consuming goods and/or
services. For Muslim consumers, halal labelling, and
halal certification are guarantees for their rights in
Advances in Biological Sciences Research, volume 9
Joint proceedings of the 2nd and the 3rd International Conference on Food
Security Innovation (ICFSI 2018-2019)
Copyright © 2021 The Authors. Published by Atlantis Press B.V.
This is an open access article distributed under the CC BY-NC 4.0 license -http://creativecommons.org/licenses/by-nc/4.0/. 186
accordance with the conditions and guarantees promised,
which are in terms of comfort, security and safety for
consuming halal goods. Furthermore, the information
obtained must be correct, clear, and honest so there are
no complaints against the goods that they purchase. Even
if complaints appear, they are entitled to be heard and
receive advocacy, protection and mediation in consumer
protection. Regarding halal products, they have to
receive guidance and education on halal thayyib food
based on Islamic principles. They are also entitled to be
treated properly and honestly, not discriminatory. In
addition, if it turns out that the halal label and halal
certification in the products are not appropriate, they are
entitled to receive compensation and/or replacement.
Under the mandated Act, regarding halal thayyib food,
the policymakers tried to protect the rights of Muslims by
applying the label of halal and halal certification. Solid
cooperation between people, businesses and governments
to oversee implementation of regulations is needed [7].
However, the solidity between stakeholders still occur
obstacles and cause some problems in the field.
Subsequently, the certainty of law on halal food
assurance under consumer protection for Muslim
consumers has not established yet.
II. METHODOLOGY
Researchers use qualitative data analysis with a
literature review method for this study, which is
examining and studying the literature in the form of
articles and journals have been published from 2012 to
2019-year time span. The papers are about the
implementation of halal product assurance in Indonesia,
namely the case of halal products, a source of funding for
the halal label and halal certification, and consumer
protection in halal product assurance for fulfilling the
food security. Furthermore, Related Indonesian
regulations are examined too on a legal basis. The
references are Act No. 18/2012 on Food, Act No. 8/1999
on Consumer Protection, Act No. 33/2014 concerning
Halal Food Assurance, and Act No. 23/2011 on Zakat
Management. The entire literature is analyzed to fill the
knowledge gap on the self-funding sources from infaq
and shodaqoh that can be used. According to Zakat
Management Act, the sources funds are analyzed to be
used as research funding related to examining and
analyzing the halal product case in lab.
III. RESULTS AND DISCUSSION
A. Indonesia’s Regulation on Consumer Protection
Regarding Halal Product Assurance
Aisyah stated, “norms formed should be obeyed
together by all members. The person who violates the
norms will get sanctions suitable as the regulation
applied in the class of society” [8]. The law is one of
norms and rules that live in society. It is compiled by the
authorities that are regulating and forcing society and
have strict sanctions to create a sense of security, peace,
prosperity, and legal certainty. Related to consumer
protection, some regulations established in private law.
Muslims in Indonesia who live in a multi-religious
community is considered to have a better understanding
of halal products [9]. Therefore, legal certainty about
halal products is very important for Muslim consumers,
then Indonesia has legalized regulations on halal
products assurance in Act No. 33/2014. The demand for
halal food in the global market has increased, and this is
an indication that awareness of halal products has been
globalized. Foods that are categorized as "Halal" must
also be healthy for consumption by taking into account
the process of preparation and serving. Opposite the
context of "Halal" is "Haram" which is prohibited, in this
case, the product is forbidden to be consumed or used
[10].
Article 1 paragraph 1 of Act No. 8/1999 on consumer
protection states that consumer protection is any effort
that guarantees legal certainty to protect consumers. The
consumer is a user of goods and/or services that available
in the community for benefit of their own, their families,
other people, as well as other living beings, and not for
sale. The businessmen are every individual or business
entity, whether a legal entity or not which established
and domiciled or conducting activities within the
territory of Indonesia, either individually or jointly by
agreement for business activities in economic sectors. To
protect consumers, the Consumer Protection Agency
established both within the auspices of the government
and non-governmental organizations which are registered
and recognized non-governmental institutions that have
consumer protection activities. In addition, there is the
National Consumer Protection Board established to assist
in the development of consumer protection. Furthermore,
to resolve disputes between businesses and consumers
formed the National Consumer Protection Agency. In
consumer protection, its principles, and objectives are
based on benefits, fairness, balance, consumer security
and safety, and legal certainty.
Consumer protection aims to raise awareness, ability
and independence of consumers to protect themselves. In
the case of food product labels and halal certificates, the
public has the right to get information and confidence in
getting halal food products that they consume - the
principle of fairness of balance, security and consumer
safety have to implement for the sake of legal certainty
for Muslim consumers. Sufficient knowledge and
understanding needed for all relevant Muslim consumers
of halal food products, but it cannot be done because of
limited knowledge and ability of consumers to access
and digest the information so that consumers are not able
to protect themselves; Furthermore, lifting the dignity of
consumers can be done by avoiding it from negative
access to the use of goods/services - in the case of halal
food products, when consumers can understand and
access information on the truth of halal food products, it
is hoped that they can avoid illegal and not thayyib food;
boost consumer empowerment in selecting, specifying,
and claim their rights as a consumer in this case the
government protect Muslim consumers by providing
coaching and transfer of information and knowledge so
that people can select, define and demand their rights as
consumers; The next goal is to create a consumer
protection system that contains elements of legal
certainty and information disclosure and access to obtain
information - legal certainty is a basic thing that must be
given to consumers, especially Muslim consumers, to get
information on halal food products and access to
certainty of information. Raise awareness of businesses
about the importance of consumer protection. So, the
growing attitude of honest and responsible in trying the
next destination-related halal food products, businesses-
are expected to give a definite assurance in labelling and
halal certification. The final goal is to improve the
Advances in Biological Sciences Research, volume 9
187
quality of goods and/or services, health, comfort, safety,
and consumer safety -halal food product should be
following Islamic values. Thus, the halal label and halal
certification account for and no suit.
Based on Article 8 paragraph (1) of the Consumer
Protection Act, the businesses prohibited from producing
and/or trading goods and/or services that: (d) does not in
accordance with the conditions, guarantees, features or
efficacy as stated in the label, label or statement said
goods and/or services; (h) does not comply with the
provisions of halal production, as the "halal" statement
stated on the label. In Article 9, associated in the halal
food products' business, businesses are prohibited from
offering, promoting, advertising goods and/or services
incorrectly, and/or as if the goods are in good condition
and properly. If the halal food products are not in good
condition and halal status is doubtful, the businesses have
violated the provisions of Article 9. Furthermore, Article
10 c, related to halal food products, general conditions
shall apply where businesses who offer goods and/or
services which are held for trading are prohibited from
offering, promoting, advertising or make statements that
are false or misleading about the condition, dependents,
guarantees, rights or compensation for goods and/or
services, in this case, related to halal food product.
Violations of articles 8, 9, and 10 are subjects to criminal
sanctions based on Article 62 paragraph (1) of the
Consumer Protection Act:
Business actors who violate the provisions referred to
in Article 8, Article 9, Article 10, Article 13
paragraph (2), Article 15, Article 17, paragraph (1)
letter a, letter b, letter c, letter e, paragraph (2), and
Article 18 shall be liable to a maximum
imprisonment of 5 (five) years or a maximum fine of
IDR2,000,000,000.00 (two billion rupiah).
Then, Article 63 explains that criminal sanctions
under Article 62, can be imposed additional penalties,
such as deprivation of certain goods; announcement of
the court decision; payment of compensation; the
stoppage of certain activities that contributed to the loss
of customers; obligations withdrawal of goods from
circulation; or revocation of business licenses.
Based on Article 95 of the Act of the Republic of
Indonesia No. 18/2012 on Food, the Government and
Regional Governments supervise the implementation of
the halal product guarantee system for those required for
food. Implementation of halal food product guarantee
system for those required is carried out in accordance
with statutory provisions. Then, in chapter VIII of the
First part of the Food Label, Article 96 explains that the
labelling of food intended to provide correct and clear
information to the public about every packaged food
product prior to purchase and/or consume food. The
information is related to origin, safety, quality,
nutritional content, and other information needed. Article
97 of the food law explains that every person who
produces food in the country for trading must put a label
on and/or on food packaging. Every person who imports
food for trade must attach a label in and/or on food
packaging when entering the territory of the Unitary
Republic of Indonesia. Labelling inside and/or on the
packaging of food is written or printed using Indonesian
as well as at least contain information about the name of
the product; the list of ingredients; net weight or net
contents; the name and address of the party producing or
importing; Halal for those who are required; date and
production code; expiration date, month and year;
distribution permit number for processed food; and the
origin of certain foods. The description on the label is
written, printed, or displayed expressly so easily
understood by the public.
Regarding halal label, Article 101 explains everyone
who states in the label, that the food traded is halal under
the requirements, is responsible for its truthfulness.
Everyone who states on the label -the food traded is in
accordance with certain claims- is responsible for the
truth of the claim. Furthermore, Article 105 describes
everyone who states in advertisements which the traded
food is halal following the requirements are obliged to
responsible for its truthfulness. Any person who states in
an advertisement that the food is trading following
certain claims has to responsible for the claim's truth.
Violations of article 105 will subject to administrative
sanctions, in the form of fines, temporary suspension of
activities, production and/or distribution, withdrawal of
food from circulation by producers, compensation,
and/or revocation of permits. Article 108 paragraph (3)
(b) states that the supervision of the requirements of food
safety, food quality, and nutrition, as well as the
requirements of labelling and advertising of food to
processed food, is implemented by government agencies
that carry out government duties in the field of drug and
food control. While the letter (c) states that, the
supervision of the requirements of food safety, food
quality, and nutrition, as well as labelling requirements
for food and fresh food advertising, is implemented by
government agencies that administer government affairs
in the field of food.
Based on Article 1 of the Halal Products Assurance
Act, products are goods and/or services related to food,
beverages, medicines, cosmetics, chemical products,
biological products, genetic engineering products, as well
as used goods that are used, used or utilized by the
community. Halal Products are products that have been
declared halal under Islamic law. Halal Products Process
(Proses Produk Halal/PPH) is a series of activities to
ensure the halal product includes the provision of
materials, processing, storage, packaging, distribution,
sales, and product presentation. Halal Products
Assurance (Jaminan Produk Halal/JPH) is legal certainty
of the halal status of a product as evidenced by a Halal
Certificate. Halal Certificate is legality of the halal status
of a Product issued by the Agency of Halal Products
Assurance (Badan Penyelenggara Produk Halal/BJPH)
based on a written halal fatwa issued by the Indonesian
Ulama Council (Majelis Ulama Indonesia/ MUI).
Based on Article 2 of the Halal Products Assurance
Act, the JPH's implementations based are as follows:
a) Protection: the aim is to protect the Muslim
community;
b) Justice: it should be reflected proportionately
for every citizen;
c) Legal certainty: the implementation aims are
providing Halal Certificate as evidence of halal product
status;
d) Accountability and transparency: every
activity and final results of the activities of the
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188
organization JPH must be accountable to the public as
the highest sovereign state following the provisions of
the legislation;
e) Effectiveness and efficiency: the
implementation of JPH done with the right goal-oriented
function effectively and efficiently, and to minimize the
use of resources is done with a quick, simple, and
inexpensive or affordable;
f) Professionalism: the implementation is done
by giving priority JPH expertise based on competence
and ethical codes.
According to Article 3, implementation of JPH aim to
provide comfort, security, safety, and certainty for the
public availability of Halal products in the consumption
and use of products, and increase the added value for the
business communities to produce and sell Halal products.
Therefore, based on these consumer protection Muslims
in purchasing and consuming halal products is one thing
that must be considered to meet the food needs in terms
of food security for the community.
B. Infaq and Shodaqoh as Self-financing Sources on
Halal Products Assurance
Chapter VIII Article 95 of Act No. 18/2012 on Food
is the basis for the Muslim's legal certainty to obtain
halal products on the market, namely the availability of
products labelled as halal and availability halal products
information. Muslim consumers are guaranteed to get
their rights to halal food. However, problems arise when
the protection of Muslim consumers has not been
implemented properly, despite the issuance of Acts
relating to consumer protection, food, and halal products
assurance to guarantee their rights. In one side, consumer
protection is passive and casuistic and consumer
protection agencies do not have much role to protect
Muslim consumers on the other side [11]. This difficulty
occurs when the level of understanding and access of the
public to halal certainty or food products is low.
Therefore, the function of social relations between
people, governments and employers are expected to
protect and perform certain actions for consumer
protection.
Financing is one of the issues that can determine the
legal certainty of halal labels and certification. This
funding can be sourced from private institutions, social
and or religious institutions (for example, Indonesian
Ulama Council/MUI, Nahdlatul Ulama/NU, and
Muhammadiyah), the government (National/ Regional
Budget), and business actors in the form of Corporate
Social Responsibility (CSR). Issues have arisen on
checking halal or haram food in laboratories, where the
costs are self-sufficiently borne by the public who file a
lawsuit against the product. Therefore, it is important to
ensure the funding of the halal or haram checking costs
of a protected food product.
The Tartasan Muslims in Russia use their own
funding from Islamic funding sources that come from
waqf and zakat for the stability of the people in a crisis.
Charity became a significant source of self-financing
when the establishment of Islamic funds by the Muslim
Religious Council for Tatarstan (MRBT) in 1998. The
mosque became a fulcrum for daily activities in helping
those in need. Mosque run courses on Islam, shops
literature and attributes of Islam, halal cafes, traditional
clothing store, which was built by contributions from
citizens, organizations and institutions. Regarding halal,
since 2010, Halal Kazan has been held in the capital city
by bringing in domestic and international halal product
manufacturers. The donation collecting organization is
the 'zakat' foundation founded in 2011, and the total
amount of zakat and shodaqoh increased based on an
analysis of the report [12]. It means, the using of Islamic
funding as sources in self-financing is could be
implemented for human’s sake all over the world.
Researchers examine the possibility of the source of
funds from BAZNAS institutions that can be used to
benefit the people, through donation (infaq) and charity
(shodaqoh). Based on Article 1 number (3) of the Act of
the Republic of Indonesia Number 23/2011 on
Management of Zakat, "infaq is assets issued by a person
or business entity outside of zakat for public benefit".
Then, Article 1 number (4), shodaqoh is "property or
non-assets issued by a person or business entity outside
of zakat for public benefit". This shodaqoh is managed in
the auspices of the National/Regional Amil Zakat
Agency (Badan Amil Zakat
Nasional/Daerah/BAZNAS/BAZDA) is an institution
that manages zakat nationally/regionally, Amil Zakat
Institution (Lembaga Amil Zakat/LAZ) is an institution
formed by the community whose task is to assist the
collection, distribution and utilization of zakat, and the
Zakat Collecting Unit (Unit Pengumpul Zakat/UPZ)
which is an organizational unit formed by BAZNAS to
help collect zakat. Furthermore, in the Fourth Section of
Management of Infaq, Shodaqoh and Other Religious
Social Funds, it is explained in Article 28 that, (1)
BAZNAS or LAZ can also receive infaq, shodaqoh, and
other religious social funds as additional duties besides
collecting zakat; (2) Distribution and utilization of infaq,
shodaqoh and other religious social funds as referred to
in paragraph (1) shall be under Islamic law and carried
out following with the designation pledged by the giver;
(3) The management of infaq, shodaqoh, and other
religious social funds have to record in a separate
bookkeeping.
Based on the legal basis, it analyzes that the source of
infaq and shodaqoh funds can be allocated as a source of
costs for research whether halal or haram of food
products in the laboratory for the benefit of people,
especially, Muslim consumers. Then, for the technical
execution can be coordinated and implemented by
BAZNAS / BAZDA, LAZ, and UPZ with consumer
protection agency’s cooperation. According to Article
29, BAZNAS of districts/municipalities shall convey
management rules of zakat, infaq, shodaqoh, religious
and other social funds to BAZNAS provincial and local
governments regularly. BAZNAS provincial and local
governments of BAZNAS are obliged to carry out the
management of zakat, infaq, shodaqoh, religious and
other social funds periodically. LAZ required to submit
zakat management, infaq, shodaqoh, religious and other
social funds to the Minister regularly. BAZNAS annual
balance report published through print or electronic
media. Further provisions on reporting BAZNAS
districts/municipalities, provincial BAZNAS, LAZ, and
BAZNAS stipulated in Government Regulation.
Furthermore, Article 30-32 states that to perform their
duties, BAZNAS financed by the State Budget and the
Rights of Amil. In performing its duties, BAZNAS
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189
provincial and districts/municipalities funded by the
Regional Budget and Rights Amil. In addition to the
financing in question, BAZNAS provincial and
districts/municipalities can be financed by the State
Budget. LAZ can use Amil's right to finance operational
activities. Article 35 also explains the role of the
community; the community can participate in the
guidance and supervision of BAZNAS and LAZ.
Guidance referred done to increase public awareness to
give charity through BAZNAS and LAZ and provide
suggestions for improving the performance of BAZNAS
and LAZ. Supervision is carried out in the form of access
to information on the management of zakat made by
BAZNAS and LAZ; and the delivery of information in
the event of irregularities in the management of zakat
conducted by BAZNAS and LAZ.
Collaboration can be conducted within the
management and supervisory systems of society, and the
local consumer protection agency to repair and improve
the consumer protection for Muslim based on the legal
basis in obtaining halal products based on the logo and
the certificate. However, the trust level of the
communities in halal products has questioned. Some
products that have already legalized by halal logo do not
guarantee that the products are not contaminated by
haram or non-halal things. Plots that offered in using
infaq and shodaqoh funds as self-financing funds in
laboratory research related to the halal logo and halal
certification are:
Regarding the food security fulfillment, the
regulations related are based on Indonesian
Constitution 1945, Indonesian Consumer Protection
Act, Food Act, Halal Products Assurance Act, and
Zakat Management Act.
The implementation of the regulation can be
executed by society’s report and or the proactive
role of the consumer protection agency or the
policymakers in reporting the cases and surveillance
system.
The stakeholders propose infaq and shodaqoh to
BAZNAS/BAZDA, LAZ for consumer protection in
halal products.
The financial share from infaq or shodaqoh is used
for the laboratory fees in analyzing and examining
the cases of halal products.
IV. CONCLUSION
Sources of funds from infaq and shodaqoh -which are
non-zakat collected and coordinated by the Amil Zakat
Agency- can be utilized for operational costs of checking
halal products -in this case food- at a laboratory, such as
LPPOM MUI and/or BPJPH lab. Furthermore, the
checking process does not have to wait for the funding
and cases' reporting from the community. Then it is
expected that the Indonesian Ulema Council and other
religious organizations can proactively take action to
solve the halal cases that could be appeared. Thus, the
need for information and legal certainty of Muslim
consumers' halal products are protected following by the
regulations, namely Consumer Protection Act, Food Act,
Zakat Management Act, and Halal Products Assurance
Act for food security sake. Equally important in the
context of food security is the institutional capacity for
halal thayyib food assurance. It takes enforcement
through tripartite approach, where governments, civil
society (e.g. MUI, NU, Muhammadiyah), industry or
business, including academics or professionals, should
work together for the benefit of society to do proactive
consumer protection for the fulfilment of food security
goal.
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