Halal Labelling as Political Capital in Negotiating Islamic Law for Business Interests

Abstract

In this study, the halal label is positioned not merely as a normative marker of sharia compliance, but as symbolic-political capital which, through a process of negotiation between Islamic law, state authority, and corporate logic, is converted into moral legitimacy, regulatory bargaining power, and economic advantage, thus revealing how piety is produced, exchanged, and contested in the arena of modern business power. This study uses a socio-legal qualitative approach with policy analysis and critical document study designs, as the negotiation of Islamic law in the issue of halal labelling essentially takes place in the textual, regulatory, and discursive realms. The results state that halal labelling must be understood as a device of power that works through symbolic recognition as well as an administrative device, thereby transforming religious values into capital that can be negotiated in three mutually pressured fields, namely pluralistic Islamic law based on ijtihad, state law that demands standardisation and certainty, and corporate logic that prioritises efficiency and supply chain certainty. From this, it appears that halal certainty often resembles procedural certainty that can be audited rather than moral certainty that lives in the diversity of community practices. Precisely because of this, the halal label becomes a strategic currency that can be converted into social legitimacy, regulatory access, and competitive advantage, while also producing a certification political economy that creates an ecosystem of costs, audit services, training, consultation, and potential technical knowledge monopolies.