A LOCAL WISDOM-BASED INNOVATION MODEL IN THE DEVELOPMENT OF THE HALAL INDUSTRY IN MAKASSAR: AN EXPLORATORY STUDY OF MSMES

Reslawati Reslawati

Reslawati Reslawati National Research and Innovation Agency (BRIN)

Abstract

This research aims to explore the innovation model based on local wisdom applied by Micro, Small, and Medium Enterprises (MSMEs) in the development of the halal industry in Makassar City. In the context of increasing global attention to the halal economy, this study offers an interdisciplinary approach that blends the perspectives of cultural anthropology, community economics, and religious studies. Qualitative methods were used through in-depth interviews, participatory observations, and document analysis on selected MSMEs in the culinary, fashion, and herbal products sectors. Preliminary results show that innovative practices are heavily influenced by local values such as siri' na pacce, community solidarity, and contextual religious interpretations. This study concludes that local wisdom is not only a source of business ethics but also a strategic framework in building sustainable halal competitiveness. These findings are expected to enrich the literature on the halal industry from a non-hegemonic perspective and contribute to regional economic development policies based on local values.

References

Alfarizi, Muhammad. 2023. "The Role of Halal Certification and Halal Practice Compliance on Sustainable Business Performance: An Empirical Modeling Investigation of The Indonesian Culinary MSME Sector." Harmoni 22(1):93–116. doi: 10.32488/harmoni.v22i1.654.

Chaidir Iswanaji, et al., Abdul Aziz. 2020. The Development of The Halal Industry and The Strengthening of Islamic Finance.

Dinar Standard. 2023. “State of The Global Islamic Economy Report.” Dinar Standard 65–66. Retrieved (https://haladinar.io/hdn/doc/report2018.pdf).

Diskop Makassar. 2024. Annual Report on . Makassar.

Ernayani, Rihfenti, and Firman Firman. 2024. “Halal Industry Transformation: Sustainability and Innovation in The Sharia Economy.” Jesya 7(1):1011–20.

Faisol, M. 2025. “National Strategy for Strengthening Halal SMEs.” Indonesian Journal of 10(1):45–59.

Global Islamic Economy Report. (2023). DinarStandard Annual Report

GoodnewsfromIndonesia. (2025). Indonesia Aims to Become the World's Halal Industry Hub.

Hendayana, Yayan, and Achmad Fauzi. 2024. Innovation Strategies for SMEs.

Isywara, A. P., Prihatiningtias, Y. W., Prastiwi, A., & Wahyuni, N. (2024). The Mediation Role of Earnings Management on The Effect of Disclosure of Corporate Social Responsibility on Financial Performance. Accounting and Financial Review (AFRE), 7(3).

LPH Unhas. (2025). Collective Halal Certification Program for SMEs.

Makassar Cooperative and Small and Medium Enterprises Agency. (2024). Annual Report on The Halal SME Program in Makassar City.

Makassar Statistics Agency. (2024). Statistics on MSMEs in Makassar City.

Matthew B. Miles, A. Michael Huberman, Johnny Saldaña. 2020. Qualitative Data Analysis: A Methods Sourcebook (4th Ed.). Vol. 17. Arizona: Sage Publications, Inc.

Meldona, M., & Rochayatun, S. (2024). External Integration and Halal Assurance System Integrity for Achieving The Performance: Based on the Structural Contingency Theory Approach. International Journal of Asian Business and Management, 3(5).

Ministry of Cooperatives and SMEs. (2024). National Halal SME Roadmap.

Ministry of Religious Affairs of The Republic of Indonesia. (2023). National Halal Certification Data.

National Committee for Islamic Economics and Finance (KNEKS). (2023). Annual Report on Islamic Economics.

ParagonCorp. (2025). Celebrating Good Business: Halal SME Empowerment Program.

Permata, Fifian, Melifia Liantifa, Muzayyanah Yuliasih, Damar Aji Irawan, Indra Budaya, Zunan Setiawan, Zefri Efdison, Melia Wida Rahmayani, Jajat Sudrajat, Ahmad Syamil, M. Subhan Iswahyudi, Rianto Nurcahyo, A. M. A. Pabulo, and M. Afdhal Chatra. 2020. SME Development & Marketing Strategies (Theory & Case Studies). Vol. 7.
Rahman, A. 2022. "Local Wisdom and SME Resilience." Journal of 7(1):21–35.

Roeslani, A. 2025. “The Halal Industry Ecosystem and The Role of The Government.” National Sharia Economics Journal 9(1):12–26.

Siti Nur Azizah, Muhfiatun. 2017. "Development of Creative Economy Based on Local Wisdom of Pandanus Handicraft in Facing The Modern Market from The Perspective of Sharia Economics (Case Study at Pandanus Nusa Sambisari Yogyakarta)." APLIKASIA: Journal of Religious Science Applications 17(2):63–78.

Sugiyono. 2022. Qualitative Writing Methods. Bandung: Alfabeta Bandung Publisher.

Syahruddin. 2024. "Business Ethics in Maros Bread Business Management to Achieve Increased Social Harmony." BANCO: Journal of Sharia Management and Banking 6(1). doi: 10.35905/banco.v6i1.9002.

Syuhri, S., Asnawi, N., & Ahmad Djalaluddin, A. (2025). Integrating Voluntary Religious Contributions (Nadzar) Into Interest-Free Loans (Qardh): A Case Study of BMT Maslahah, East Java, Indonesia. Journal of Islamic Economics Lariba, 11(1).

UNDP Indonesia. (2022). Local Wisdom and Sustainable Development in Eastern Indonesia.

Yulia Febriyati. 2025. “Women’s Empowerment in Improving Family Economy Based on Sharia Economics.” SANTRI: Journal of Islamic Economics and Finance 3(3):206–15. doi: 10.61132/santri.v3i3.1591.

Yuwana, Siti Indah Purwaning, and Hikmatul Hasanah. 2021. “Literacy of Halal-Certified Products in Order to Increase Sales in MSMEs.” Jurnal Pengabdian Masyarakat Madani (JPMM) 1(2):104–12. doi: 10.51805/jpmm.v1i2.44.