This policy paper identifies the critical challenges faced by micro-enterprises in densely populated urban areas, where land limitations lead to the integration of production spaces with residential areas, thereby hindering the separation of production flows according to hygiene and halal assurance standards. This issue results in a high risk of cross-contamination and weakens the competitiveness of local products within formal supply chains. Utilizing a descriptive-qualitative policy analysis approach, this paper evaluates the effectiveness of existing regulations and formulates a cross-sectoral synergy strategy between technical ministries and local governments. The policy methodology employed includes mapping structural problems in physical facilities, analyzing operational standard gaps, and formulating a collaborative framework through joint regulations. The core of this policy proposal is the restructuring of the local government's role to directly intervene in physical infrastructure development for micro-businesses that have attained halal certification but are constrained by facilities. These strategic steps include the allocation of regional budgets for physical facility renovation and the reconfiguration of spatial layouts on limited land according to national technical standards. Through the implementation of this policy, it is expected to achieve consistent hygiene standardization, strengthened product traceability, and the elimination of logistical barriers for micro-entrepreneurs. In conclusion, the proposed synergy aims to create a resilient local halal industrial ecosystem, where government infrastructure intervention serves as the primary key to ensuring sustainable compliance with health and religious regulations, enabling local micro-enterprise products to competitively enter modern retail markets and government procurement systems.
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