THE PERCEPTION ANALYSIS OF CONSUMERS AND PRODUCERS ON HALAL LABEL OF PACKED-FOOD PRODUCTS IN YOGYAKARTA

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1 ABSTRACT THE PERCEPTION ANALYSIS OF CONSUMERS AND PRODUCERS ON HALAL LABEL OF PACKED-FOOD PRODUCTS IN YOGYAKARTA Didik Purwadi, Wahyu Supartono and Shinta Irawati Department of Agro-Industrial Technology Faculty of Agricultural Technology Gadjah Mada University The purpose of this research is to analysis the perception of consumers and producers on halal label for packed food products. Attributes which was used are halalness as the main consideration, the price of halal products, the halal information from producers, halal product socialization from producers, halal label in product packaging, audit and halal certification for food products. The result of this research indicated that all of those attribute are good, which the perception index is differ among social classes. The perception index are (low social class), (medium social class), and (high social class). All of social classes choose the first priority of attribute is halalness as the main consideration attribute. Producer s perception index is which the main priority of attribute is the price. Keywords: perception index, halal label, food product 1. Introduction 1.1. Background Indonesia has been developing its agriculture and industry systematically since 1969, and now becoming the biggest Muslim country in the world. One of the main problems of this industrial development is food safety and food security, which emerges because of the differences between qualitative and quantitative food demand and supply. In terms of Islamic way, food safety means halal food and toyyib food. In order to solve this problem, LPPOM- MUI which has authority to assure the halal food makes a certain procedure for food producer to apply halal certification. Discussion about the consumer s perception of halal label can also be explained through how the consumer s motives to purchase products. So far Roitner- Schobesberger et al (2008) concluded that there are three main motives to purchase organic food in Bangkok: the expected health benefits, the attraction of new and fashionable product, and the search for tastier products. 1

2 Nowadays the producers of various food products in Yogyakarta tend to give attention on halalness certification. The numbers of applicant tends to increase. The number of halal certification from LPPOM MUI DIY during can be explained as follows (Anonymous, 2008). In 2002 only 7 certificates; in 2003 increased to 29 certificates, in 2004 became 90 certificates, in 2005 decreased to 57, but sharply increased to 188 in 2006, 134 in 2007 and 161 in 2008 (till October 2008). So, the halal perception becomes important to discuss both from producers and consumers point of view. The perception process is influenced by perceptual selection, organizational perception, and interpretation of stimulus (Setiadi, 2003). So, this paper will elaborate such influenced factors Purposes The purposes of this paper can be explained as follows. First, to investigate the consumer s knowledge of halal attributes. Second, to analyze the producer s knowledge of halal products. Third, to evaluate the perception index of social classes on choosing halal label. 2. Methodology a. Preliminary survey, which was done in Yogyakarta and Sleman district. b. Questioner design and Questioner test. Questioner was developed in order to get general description of respondent and the value of each perception attribute. Questioner was tested through validity and reliability analysis tests. c. Data collection, which consist of consumers and producers through interview and questioner approaches. Consumers of processed food divided into three categories: low, medium, and high social classes. The number of consumer respondent is 200 persons. Processed foods in this research consist of Mata Roda (spices products), Sari Husada (milk products), Jamu Sri Haryanto (traditional food supplements), Obonk Steak (restaurant), Abon 37 (meat processed product), and UPPK FT UNY (bakery product). d. Data processing and analysis which done through data classification, coding, editing, cross tabulation, and perception index analysis. e. Conclusion. 2

3 3. Result and discussion 3.1. Description of respondents There are three social classes used in this research. Low Social Class, which consume processed food below Rp ,- a month. Medium Social Class, which expenditure on processed food between Rp ,- and Rp ,-. consumption rate more than Rp ,- Table 1. The numbers of respondent in each social class High Social Class, which have District Low social class Medium social High social class Total class Yogyakarta Sleman Total Table 2. The age composition Age Low social class Medium social class High social class Total > Total Table 3. The sex composition District Low social class Medium social High social class Total class Male Female Total Based on the description of respondent, it can be concluded that the main consumers of processed food can be explain as follows: living in Yogyakarta, age between years old, female Validity and reliability tests The result of validity test indicated that r-calculated for each item was positive and bigger that r-table = So that it be concluded that the questioner is valid. The cronbach alpha was which indicated that the questioner is reliable. 3

4 3.3. Consumers knowledge of halal attribute Some important attribute which important to the halal knowledge are consumers knowledge of governmental regulation of food, consumers intention of halal label in processed food products, producers responsibility of halal label, choosing non halal label product because of its price, the confidence of halalness of famous product, consumers perception of halal label product without register to LPPOM MUI, consumers perception of halalness comparing to others attributes. Table 4. Consumer s knowledge of governmental food regulation Yes No There are some reasons that consumers do not believe the effectiveness of halal regulation includes the role of LPPOM-MUI. The Indonesian government as well as LPPOM MUI which has authority to control the application of halal regulation still weak in law enforcement. Majority of consumers understood the governmental regulation of food. Consumers have a good intention on halal label which shown in Table 5. Consumer of low social class has stronger intention than medium or high social class. Table 5. Consumer s intention of halal label in processed food products Yes Sometime No Table 6. Producers responsibility of halal label Yes No

5 Consumers of low and medium social classes have stronger opinion that producers have responsibility to assure halal label. Table 7. Choosing non halal label product because of its price Yes No Table 8. The confidence of halalness of famous product Yes No The confidence of halalness of famous product is bigger in low social class than others. But all classes of consumers indicate that majority they do not confidence of halalness of famous products. Table 9. Consumers perception of halal label product without register to LPPOM MUI Yes No Table 10. Consumers perception of halalness comparing to others attributes Attribute Low social Medium High social Total Percentage Halalness Brand Price Taste

6 3.4. Producers knowledge of halal product It is about 67% of producers of food product have t understood about governmental food regulation. This figure indicates that the socialization of food regulation is still weak. Producers who know about the role of LPPOM MUI are only 33.33%. Based on the survey data, producers who have no halal label want to apply halal certification, but they do not know how they can get it. So far, those producers do not make effort to look for information about halal certification Perception index Perception index was calculated based on each social class: low social class, medium social class and high social class. Table 11. Perception index of low social class Attributes Weight Value Perception index Halalness as the main consideration Price of halal product Information about halal product Product halalness socialization Halal label in packaging Producer s responsibility for halal audit and certification Total Table 12. Perception index of medium social class Attributes Weight Value Perception index Halalness as the main consideration Price of halal product Information about halal product Product halalness socialization Halal label in packaging Producer s responsibility for halal audit and certification Total

7 Table 13. Perception index of high social class Attributes Weight Value Perception index Halalness as the main consideration Price of halal product Information about halal product Product halalness socialization Halal label in packaging Producer s responsibility for halal audit and certification Total Table 14. Perception index of producers Attributes Weight Value Perception index Halalness as the main consideration Price of halal product Information about halal product Product halalness socialization Halal label in packaging Producer s responsibility for halal audit and certification Total Based on Table above, it can be explain that the perception index of medium social class is biggest than others. All of classes give attention on halalness as the main consideration as the attribute with highest index. Price of halal product was considered by low and medium social class. Producers have responsibility to assure consumers through halal certification which was sounded by high social class. But, from the producer s point of view, both price of halal product and responsibility for halal audit and certification are priority of attributes. 4. Conclusion LPPOM has authority to control the application of halal certification, but the regulation is still weak in law enforcement. Consumers have a good intention on halal label. Consumer of low social class has stronger intention than medium or high social class. Consumers of low and medium social classes have stronger opinion. The confidence of halalness of famous product is 7

8 bigger in low social class than others. But all classes of consumers indicates that majority they do not confidence of halalness of famous products The producer s knowledge of halal products can be concluded as follows. It is about 67% of producers of food product have t understood about governmental food regulation. This figure indicates that the socialization of food regulation is still weak. Producers who know about the role of LPPOM MUI are only 33.33%. The perception index is differing among social classes. The perception index are (low social class), (medium social class), and (high social class). All of social classes choose the first priority of attribute is halalness as the main consideration attribute. Producer s perception index is which the main priority of attribute is the price. References Anonymous, Undang-undang Republik Indonesia No 7 Tahun 1996 tentang Pangan, Jakarta, in Indonesian. Anonymous, 2008, Daftar Perusahaan Tersertifikasi, LPPOM MUI DIY, in Indonesian. Irawati, Shinta., Didik Purwadi dan Wahyu Supartono, Esensi Label Halal terhadap Sikap Konsumen dan Produsen Pangan Olahan Terkemas, FTP UGM, unpublished, in Indonesian. Roitner-Schobesberger, Birgit., Ika Darnhofer, Suithichai Somsok, and Christian R Vogl, 2008, Consumer Perceptions of Organic Foods in Bangkok, Thailand, Food Policy, Vol 33, pp , Elseivier Setiadi, Nugroho J., 2003, Perilaku Konsumen : Konsep dan Implikasi untuk Strategi dan Penelitian Pemaswaran, Prenada Media, Jakarta, in Indonesian Singarimbun, M., dan Sofian Effendi, Metode Penelitian Survei, LP3ES, Jakarta, in Indonesian. 8