Legal Insights

Regulatory Framework for Halal Certification 

Halal certification is regulated by the Indonesian Ulema Council (Majelis Ulama Indonesia/MUI) and enforced by the National Halal Agency (Badan Penyelenggara Jaminan Produk Halal/BPJPH).  The underlying requirements for halal certification are stipulated under Law No. 33 of 2014 on Halal Product Assurance as amended by Law No. 6 of 2023 on the Stipulation of Government Regulation No. 2 of 2022 on Job Creation (“Halal Law”), which establishes the legal framework for halal certification and the halal assurance system in Indonesia. The Halal Law mandates that products consumed by Muslims must be certified halal to ensure they comply with Islamic dietary laws. 

Further detailed guidelines on halal certification are stipulated under some implementing regulations, including the following: 

(i) Government Regulation No. 39 of 2021 which provides detailed guidelines on the implementation of halal product assurance, including the roles and responsibilities of BPJPH and MUI (“GR 39/2021”). 

(ii) Minister of Religious Affairs Decree No. 748 of 2021 on Types of Products which Must be Halal Certified (“Decree 748/2021”). 

(iii) Minister of Religious Affairs Decree No. 1360 of 2021 on Ingredients Excluded from the Obligation to Be Halal Certified (“Decree 1360/2021”). 

(iii) MUI Halal Certification Guidelines which contain specific guidelines and technical criteria for halal certification, including the procedures for obtaining certification and the standards that must be met. 

(iv) BPJPH Regulation No. 26 of 2021 which details the procedures for halal certification, including application processes, auditing, and compliance requirements. 

Key Requirements for Halal Certification 

The following requirements must be met to obtain halal certification: 

1. Ingredient Sourcing: 

All ingredients used in the product must be halal which means they must not include any prohibited (haram) substances such as pork or alcohol. 

2. Production Process: 

• The production processes must prevent cross-contamination with non-halal substances. 
• High standards of hygiene and cleanliness in production facilities must be maintained to avoid contamination. 

3. Labelling: 

Products must display the halal logo and certification number issued by BPJPH. 

4. Supply Chain: 

All stages of the supply chain, including suppliers and distributors, must adhere to halal standards. 

5. Training: 

Employees must be properly trained in halal practices and procedures. 

Products and Services Requiring Halal Certification 

Under Decree 748/2021, the following products and services are required to have halal certification to ensure they comply with Islamic dietary laws:  

(i) food; 

(ii) beverages; 

(iii) medicines; 

(iv) cosmetics; 

(v) chemical products; 

(vi) biological products; 

(vii) genetic engineering products; 

(viii) utility goods; 

(ix) slaughtering services; 

(x) processing services; 

(xi) storage services; 

(xii) packaging services; 

(xiii) distribution services; 

(xiv) sales services; and 

(xv) serving services. 

Further, Decree 1360/2021 determines certain ingredients which are excluded from the obligation to be halal certified. Those ingredients consist of the following: 

(i) ingredients derived from nature without processing and without the addition of other ingredients; 

(ii) ingredients that do not carry risks of containing and/or being contaminated by non-halal materials; 

(iii) chemicals that are not classified as dangerous and do not contain illegal ingredients. 

Services subject to halal certification under Decree 748/2021 are included on the basis that they involve activities directly related to goods or products that require halal certification. As outlined in Government Regulation No. 39/2021, services will be eligible for halal certification if they are rendered specifically for halal goods or products, provided that such services are conducted in locations and through processes that are distinct and segregated from those used for non-halal goods or products. 

Halal Certification Process 

The BPJPH is responsible for conducting inspections of production facilities to ensure compliance with halal standards. Additionally, the MUI may undertake a halal audit to confirm that the product and its manufacturing processes conform to Islamic principles. 

Upon verification that the product satisfies all halal requirements, the BPJPH will issue a halal certificate. This certificate is subject to periodic renewal as stipulated in the certification documents and in accordance with regulatory provisions. Following certification, the BPJPH may conduct ongoing compliance checks and audits to ensure continuous adherence to halal standards. Products that receive halal certification must prominently display the halal logo and certification number to signify their conformity with Islamic dietary laws. 

Outlook 

The government is in the process of drafting additional legislation concerning mandatory halal certification for the logistics sector. While no specific timeline has been established for the completion of this regulatory framework, it is advisable for entities within the logistics sector to voluntarily seek halal certification for their services, particularly when such services will involve the handling of halal goods or products.