Syarifah Reihana F. & Ira A.

Eddymurthy

HALAL IN INDONESIA
Halal Certification and Market Access
for Food and Beverage Products
Presentation Summary

TOPICS TO COVER

What is Halal?
Halal Certification Advantages
Halal Implementation Timeline
Halal Certification for Food and Beverages
Halal Production Process
Non-Halal Products
Halal Certification Procedure
Certification Renewal
Certification Payment
Foreign Halal Certification
Sanctions
 What Is Halal?
• Halal is an Arabic word meaning ‘lawful’ or ‘permitted’. In reference to
food, it is a dietary standard prescribed in Muslim scripture.

• Indonesia is around 87% Muslim (meaning roughly 230 million of the

270 million total population follow the Islamic faith).

• Consumers tend to gravitate toward products with Halal labels to

comply with the teachings of their religion.

• Businesses intending to invest in Indonesia need to consider the

importance of Halal certification for their products.
Advantages of Halal Certification
• Essential for businesses to market their Halal products.
• Enables businesses to market products in countries with a predominant
Muslim population.
• High demand for Halal certified products in Indonesia.
• Unique Selling Point
• Access to global market. When exporting products, it helps meet the
requirements of the importing countries.
• When a company gets Halal certificate, it shows the customers that the
company produce high quality level product, because a Halal Certificate
contains the most ultimate level quality standards.
Halal Laws and Regulations
• The law requires all products imported, distributed and sold as Halal in
Indonesia to be Halal certified.

• Halal Product Guarantee Agency ( Badan Penyelenggara Jaminan Produk

Halal / BPJPH) is responsible for the issuance of Halal certification and the
monitoring and supervision of Halal Product Assurance.

• Law No. 33 Year 2014 on Halal Product Assurance (“Halal Law”)

• Law No. 11 Year 2020 on Job Creation (“Omnibus Law”)

Halal Implementation Timeline

• The Halal certification obligations are implemented progressively.

• Halal certification will apply first to food and beverages before being extended to
cosmetics, drugs and other consumer goods, and services related to these goods.
 Halal Certification for
Food & Beverages

• By October 17, 2024, Halal Food & Beverages must obtain Halal
certification.

• Halal certificates are given to food and beverages originating from

Halal materials and complying with the Halal Production Process.
 Halal Production Process

The location, area, and equipment used for the Halal Production Process must be
separated from the location, area and equipment used for Non-Halal Products.

Supply of Processing Storage Packaging Distribution Marketing &

Raw Materials Display
 Non-Halal Products

Processed materials, derived from carcasses, blood, pigs,

animals not slaughtered in accordance with Islamic teachings,
plants that are intoxicating, or health-threatening, microbes or
chemically/biologically/genetically modified products.

Businesses intending to distribute non-halal products are

obliged to disclose such information through appropriate
labelling.

The non-halal label must be marked clearly on the

packaging of the product. The non-halal ingredient must be
visible and highlighted!
 Halal Certification
CERTIFICATION PROCEDURE UNDER THE HALAL LAW

(5 DAYS) Halal Auditors (5 DAYS) (3 DAYS)

conduct examination BPJPH verifies and BPJPH issues Halal
BPJPH examines
of the product delivers results to MUI
1 application 3 5 7 Certification

2 4 6 8
Business submits BPJPH appoints LPH LPH submits MUI holds Fatwa
application to BPJPH (Halal Examination examination results to Assembly to
(1 DAY)
(Halal Product Agency) BPJPH (2 DAYS) determine the halal
(1 DAY) (15 DAYS)
Assurance Agency) status of the products
 Submitting the Application
Business submits Application is completed Determination and
application for registration in 5 business days appointment of LPH
of Halal Certification in
writing to BPJPH 1 day
5 business days

BPJH 5 business days

Must include the following:

• Business owner and company data;
• Product name and type; Application document
• List of products and materials used; are incomplete
• Product processing; and
• Halal guarantee system documents.

Applicant shall complete document in 5 days

Registration
Application is Rejected
Applicant fails to complete the documents
Examination & Audit Procedure
15 Days
BPJPH submits the
LPH LPH submits the result
result of the verification
of the documents and
Contains of the examination and result to MUI within 3
Inspection and / or product questionable inspection to BPJPH business days
testing of halal product by
ingredient Evaluation done in
Halal auditors: Verification
• Examination of the validity laboratorium by BPJPH MUI
of documents; and
• product inspection
Maximum of 2 days

Done in the business

premises during the
manufacturing process Result of examination and product inspection
• Products and materials used;
LPH • Halal production process (PPH);
• Analysis result and/or material specifications;
Businesses are obligated to • Minutes of examination; and
provide information to the • Recommendations
Halal auditor
Issuance of the Halal Certification

Involves:
• expert;
• relevant ministries;
• related institutions;
and/or
• related institutions.

Decree of the halal-ness of

BPJPH submits the the product
results to the MUI MUI Halal Fatwa Assembly Signed by the head and
BPJPH review verification documents secretary of the MUI Fatwa
from the BPJPH Commission and
acknowledge by MUI
In the event that a Halal Fatwa Assembly requires Chairman
additional information, the MUI returns the documents
to be completed within 10 working days

Submitted to BPJPH no later than 30 (thirty) working days after MUI receives the verification
result from BPJPH, and to be the basis for the issuance of the Halal Certification.
 Impact of COVID-19 on Halal Certification

• Certification applications are still accepted, but there is a reduction in the number of incoming
applications.

• Consultations are done online, through email and WhatsApp.

• Applications are submitted online via email.

• Modified Onside Audit

• Halal product analysis in the LPPOM MUI Laboratorium

• Fatwa Assembly is conducted online.

 Application Process During COVID-19

Register for Payment for

Submit Audit / registration Deliver results
Obtain BPJPH issues
application to Examination and Modified On- Fatwa of Fatwa
Receipt from Assembly Halal
BPJPH via Process via examination Site Audit Assembly to
BPJPH Certificate
email Cerol to LPPOM- BPJPH
Application MUI
Halal Label and Business Obligations
• Products that have been halal certified must have a visible halal label included in
the packaging / on the product.

• Business obligations

1. Provide clear, details and truthful information

2. Separate the location, area and equipment for the slaughtering, processing,
storage, packaging, distribution marketing of halal and non halal products.
3. Have an appointed halal supervisor.
4. Report any change in ingredient to the BPJPH.
5. Attach the Halal Label on the certified products
6. Maintain the halal nature and compliance of the halal certified product
7. Renew the Halal Certificate if the validity period has expired.
 CERTIFICATION CERTIFICATION
RENEWAL PAYMENT

• Halal certification is valid for • Businesses submitting an

4 years unless there has application for Halal
been a change in the certification will be charged a
ingredients. fee.

• Business owners should • Fees are waived for small

renew their Halal certification businesses.
3 months before the end of
the Certificate’s validity
period.
 Foreign Halal Certification
• Businesses intending to import Halal products that have received Halal certification from abroad
must register such products with BPJPH before they can be distributed in Indonesia.

• This only applies if the products were certified by an overseas Halal institution that has a co-
operation agreement / acknowledgment from BPJPH in place.

• As of this date, BPJPH recognizes 45 foreign Halal institutions from various nations (including
Singapore, Japan, India, Malaysia, Philippines, Thailand, Hong Kong, Vietnam, Australia, New Zealand,,
Germany, Netherlands, Spain, Italy, UK, Ireland, etc).
 SANCTIONS
Businesses that violate their obligations are subject to administrative sanctions in the form of:

Revocation of Revocation of
Written Administrative
Halal product from
Warnings Fines
Certificate distribution
Changes in the Omnibus Law
Certification Process takes less time

Halal certification fee for Micro and Small Businesses is exempted

LPH (Halal Examination Agency)

establishment

Implementing Regulations to be enacted

Tips – Applying for Halal Certification

Consult with the officials

Study the SJH (Halal Assurance System)

Implement a comprehensive halal system

Prepare your documents

Recheck your documents

 Get in Touch
HERE'S HOW TO REACH US

Address
14th Floor, Mayapada Tower I, Jl. Jend. Sudirman No. 28
Jakarta - Indonesia 12920

Phone
+6221 2953 2000

Email
ssek@ssek.com