ENABLING MARKET UPGRADING OF TEMPEH MSMES: A SOFT SYSTEMS METHODOLOGY STUDY OF GMP, HACCP, AND HALAL CERTIFICATION IN JAKARTA

Abstract

This study examines the role of GMP, HACCP, and Halal certification in enabling market upgrading for tempeh and tofu micro, small, and medium enterprises (MSMEs) in Jakarta, particularly in their transition from informal sales channels to modern retail markets. Soft Systems Methodology (SSM) was employed to analyze the complex socio-technical challenges involved. Data were collected through in-depth interviews with tempeh and tofu cart vendors and focus group discussions (FGDs). Findings indicate that certification enhances product credibility and facilitates access to modern markets but is insufficient for full integration. MSMEs continue to face operational constraints, including limited packaging capacity, logistical inefficiencies, weak bargaining power, and difficulties negotiating with retailers. The SSM analysis highlights that effective market upgrading requires changes in entrepreneurial mindsets, improvements in internal processes, and stronger collaboration among MSMEs, government agencies, and market actors. This study contributes by integrating SSM with food safety and Halal certification frameworks to explain MSME market upgrading as a socio-technical process. Practically, it offers guidance for MSMEs and policymakers and supports including certified tempeh and tofu in public nutrition programs to promote a sustainable and inclusive local food system.