Halal Practices on the Shrimp Paste Processing Industries for Business Development in Rokan Hilir, Riau Indonesia

Abstract

This survey research aims to analyse the application of halal practices on the terasi (shrimp paste) processing industry in Rokan Hilir Regency, Riau Province, Indonesia. The location was determined purposively because it is the centre of the largest shrimp paste processing industry in the province. There’re 10 of 54 the total shrimp paste processing companies were sampled: two large companies, two medium companies, and six small companies. Data was collected by interviewing the owner of the company as a respondent, using a questionnaire guide. Data of halal practices refer to the Halal Fatwa Standardization of the Indonesian Ulema Council, include: manufacturer management, physical facilities, production equipment facilities, processing procedure, and storage procedures. Data processing used descriptive statistical methods with SPSS version 25. The results showed that the halal practices application level on the shrimp paste processing industries in Rokan Hilir was still low, the average is only 67.10%. The application rate showed that large companies (69.66%), small companies (50.66%), and medium (94.98%). The low application of halal practices in shrimp processing large-companies, because the owner come from non-Muslim circles so they don't understand well the principles of halal. Meanwhile in small companies, it’s caused by limited capital, especially to build processing facilities whose quality’s standard and could be well controlled. This phenomenon’s worried because it could threaten the sustainability of the shrimp paste processing industry in Rokan Hilir in the future. The last, the products’re marketed to Java Island, Indonesia and Malaysia, which are Muslim dominantly.