Legal Insights

Halal Certification in Indonesia: What You Need to Know 

In Indonesia, obtaining Halal certification for certain product categories is not only a matter of preference but a legal requirement. This certification ensures that products adhere to Islamic law and do not contain any forbidden substances. Recently, the Indonesian government introduced new regulations that will make Halal certification mandatory for various consumer goods. In this article, we will explore the basics of Halal regulation, upcoming deadlines, exemptions, and the certification process. 

Large-scale businesses in the food, health, and cosmetic industries must follow the general Halal certification process. Violating this obligation can result in a ban on selling goods within the Indonesian market. Halal certification ensures that products are free from any substances considered Haram, or unlawful, according to Islamic law. 

While businesses are currently allowed to sell products without Halal certification, upcoming deadlines will make certification mandatory. Food and beverage products are the first to face this requirement, with a deadline set for October 17, 2024. Different product categories have varying deadlines, ranging from traditional drugs to clothing and household appliances. Detailed deadlines can be found in Government Regulation No. 39/2021. 

The regulation provides exemptions for products made from ingredients considered Haram. Alcoholic drinks, pork and its derivatives, improperly slaughtered animals, and products containing blood or blood products are exempted from Halal certification. Additionally, products that depict anti-Islamic beliefs or are made with certain substances like artificial flavors or citric acid are also exempt. 

The process of obtaining Halal certification in Indonesia involves three main stages. Firstly, businesses must submit an application to the Halal Product Assurance Organizing Agency (BPJPH) for verification. Next, a Halal auditor conducts an evaluation to ensure compliance. Finally, the Indonesian Ulema Council (MUI) reviews the product and determines its Halal status. Typically, a Halal certificate is valid for four years, but any changes to the product composition may require re-evaluation. 

Halal certification is a vital aspect of doing business in Indonesia, particularly for large-scale companies in the food, health, and cosmetic industries. As the Indonesian government transitions towards mandatory certification, businesses must familiarize themselves with the upcoming deadlines and ensure compliance. Understanding the process of securing Halal certification will help companies navigate the regulatory landscape and continue to thrive in the Indonesian market.