Indonesia, the country with the largest Muslim population in the world, has become a key player in the global halal industry. The Indonesian government aims to become the world's global halal hub, striving to ensure the availability of halal products in the market.
As a major initiative, the Indonesian government introduced Government Regulation No. 39 of 2021 (the 'Halal Certification Regulation') to implement halal product assurance, mandatorily requiring halal certification for various goods and services. In addition to the food and beverage industry, this regulatory framework also covers consumer goods industries such as cosmetics, pharmaceuticals, medical supplies and devices, clothing, office supplies and household appliances, including their auxiliary businesses. To comply with this regulation, each product category must obtain halal certification within a specified time frame (from October 2024 to October 2034).
For non-compliance with the Halal Certification Regulation, enterprises may be subject to administrative sanctions, including written warnings, administrative fines, revocation of the halal certificate, and withdrawal of goods or services from the market.
Are non-halal products still allowed into Indonesia? How do these regulations affect non-halal products?
Yes, non-halal products are still allowed into Indonesia. Non-halal products should include a non-halal label or description. The non-halal description can take the form of pictures, logos and/or text, including on:
- The product's packaging
- A certain part of the product
- Certain places on the product
In the product ingredients, prohibited ingredients must be printed in a different color. In addition, the non-halal description must be easy to view and read, and not easily erased, removed or damaged. Failure to comply with these requirements may result in administrative sanctions.
Who carries out the inspection activities at the production site of imported products?
Inspection activities at the production site of imported products will be carried out by a foreign halal body (LHLN) that has signed a mutual recognition agreement (MRA) with the Indonesian Halal Product Assurance Organizing Agency (BPJPH). Currently, BPJPH has signed MRAs with the following nine LHLNs for recognition and acceptance.
- Federation of Islamic Associations of New Zealand
- The Central Islamic Council of Thailand
- Taiwan Halal Integrity Development Association
- NZIDT Limited
- Korea Muslim Federation (KMF)
- Korea Halal Authority
- Islamic Food and Nutrition Council of America
- Halal Compliance Services (HCS)
- Chile Halal Certification Center - CHILEHALAL
BPJPH has also signed MRAs with 28 other LHLNs to accelerate the completion of LHLN assessment for the recognition and acceptance of halal certificates.
In addition, if a country does not have a BPJPH-recognized LHLN, the inspection activities will be carried out by a registered Indonesian halal inspection body (LPH) in accordance with the Halal Registration Regulation.
Do imported products need to be halal-certified in the country of origin? Can halal certification be applied for in Indonesia?
This depends on the halal body of the country of origin. Imported products that have obtained halal certification in the country of origin can be recognized and accepted in Indonesia if the product is certified by one of the foreign halal bodies (LHLN) mentioned above.
That said, a halal certificate issued by an LHLN does not require applying for another halal certificate in Indonesia. However, for halal certificates with raw-material categories, the additional ingredients, auxiliary materials and slaughter products issued by the LHLN must first be registered before they can be distributed in Indonesia.
If BPJPH does not recognize the foreign halal body of the local country, halal certification of imported products must be carried out in Indonesia in accordance with the Halal Registration Regulation.
How can enterprises prove compliance with halal regulations during the transportation of imported goods?
After registering and obtaining a halal certificate, enterprises should include the halal mark in the containers used for transportation to indicate that the logistics or distribution activities carried out by the enterprise comply with halal certification regulations. Enterprises are advised to choose transportation and logistics companies that comply with Indonesian halal regulations.
It is worth noting that this requirement may apply to the distribution or logistics activities of food, beverage, pharmaceutical or cosmetic-related products.