The New Indonesian BPJPH Halal Certification Process

The most fitting phrase to describe the definition of 'Halal' is 'Halal is a huge value.' Although Halal certification was initially an option using Islamic teachings as its basis to protect customers, Halal certification is no longer limited to Muslims' religious obligations. It is not only rising as a strong market trend, but is also an increasingly globalized phenomenon for both Muslims and non-Muslims. The 'Halal' mark on food not only ensures Muslims can eat it, but it has now become a global symbol of quality, safety and dietary habits.

This quality makes the Halal advantage relate not only to religious values, but also to the concepts of dietary consistency, protection, hygiene and non-contamination introduced in the manufacturing process, making the Halal concept more popular among Muslims and believers of other religions. In addition to the above elements, the Halal definition also involves ethical ideals of consumption culture, such as concepts of maintaining sustainability, civic conscience, environmentalism, cultural justice and animal rights, which to a greater extent increase non-Muslim citizens' popularity, desire and demand for Halal-certified goods.

Indonesia's New Halal Certification Process

Indonesia's new Halal Product Law (the 'Halal Law') came into effect on October 17, 2019. Many retail goods and related services entering and sold in the country must be Halal-certified, or mark their products as 'non-Halal.' However, some products and services may have to comply with them before 2022.

For those wishing to export to Indonesia from abroad and provide food services or goods in Indonesia, it is essential to comply with the specifications of Indonesian Halal food. Even if you can sell your product as non-Halal food, if you wish to achieve good business volume - as every trader or exporter hopes - it is unwise to launch non-Halal goods in such a predominantly Muslim community.

Why Has the Halal Certification Application Process Changed?

Only the Indonesian Ulema Council (MUI) had the authority to manage Halal certificates, until the state approved Law No. 33 of 2014. However, MUI did not supervise Indonesia's Halal certification well.

It is expected that the inauguration of the BPJPH agency will strengthen the ethical conduct of the procedure and prevent unethical activities such as corruption. Under a new program that converts to an online transparent mechanism for paying fees through designated banks, the process should be more efficient.

Who Now Issues Halal Certification in Indonesia?

Indonesia's Halal certification process now includes two stakeholders: MUI and Indonesia's National Agency of Drug and Food Control (BPOM). In addition, MUI has developed a separate body to protect Muslim customers from buying specific goods. For example, for food, drugs and cosmetics, there is the Assessment Institute for Food, Drugs and Cosmetics (LPPOM-MUI).

Due to Law No. 33/2014, MUI's position in Indonesia's Halal certificate procedure remains crucial. BPJPH will mainly act as a regulatory body, with the ability to establish, remove and manage all administrative departments related to the Halal certification of local and imported goods.

However, the Halal inspection bodies (LPH) that certify MUI's Halal consultation or fatwa should be issued.

In summary, the new BPJPH acts as the government's official Halal body:

The Halal Product Assurance Implementing Agency (Badan Penyelenggara Jaminan Produk Halal, or 'BPJPH') is under the Ministry of Religious Affairs and was also authorized by the Halal Law to be established within 3 years after October 17, 2014. It was established under Presidential Decree No. 33, which came into effect on October 17, 2019.

Under the control of the Ministry of Religious Affairs ('MORA'), BPJPH was officially established. Although in Indonesia, the Indonesian Ulema Council (Majelis Ulama Indonesia, or 'MUI') also has the authority to intervene through Halal certification.

BPJPH, under Indonesia's Ministry of Religious Affairs, is the Indonesian abbreviation for the Halal Product Assurance Agency. The organization has taken over all the roles previously performed by the MUI non-governmental body, aiming to carry out all Halal certification processes in one place in a transparent manner.

The Halal certification process was conducted only by MUI and its certification body, the MUI Assessment Institute for Food, Drugs and Cosmetics (Lembaga Pengkajian Pangan Obat-obatan dan Kosmetika MUI, or 'LP-POM MUI'), in the old replaced model.

In the current model, BPJPH is the Halal approval application body, and many other parties are involved in the process. To audit the applicant company, BPJPH assigns an LPH. The LPH audit body will report its report to BPJPH.

Then, if the product meets Halal requirements, BPJPH will submit the audit results to MUI. To review the audit and determine whether the product is Halal, MUI will conduct the Halal fatwa procedure (Sidang Fatwa Halal). If MUI requires the applicant to provide documents, BPJPH can work closely with the applicant. Communication among MORA, LPH, BPJPH and MUI will take place at this point to determine the Halal suitability of the goods and submit additional documents.

If the product is deemed Halal, MUI will notify BPJPH, and within 30 working days after MUI collects the audit report from BPJPH, BPJPH will issue the Halal fatwa for the product. However, if MUI states otherwise, MUI should notify BPJPH that the material does not meet Halal standards and therefore cannot be considered a Halal material.

Scope of the Halal Law

According to the Halal Law, the concept of 'product' in Article 1.1 of the Halal Law: 'products are classified as products and/or services related to food, beverages, drugs, cosmetics, pesticides, biological products, genetically modified products, goods, and items consumed, used or utilized by the public.' Items such as clothing and beverages can also be included.

Things to Know When Applying for a Halal Certificate in Indonesia

According to BPJPH, food and beverages, cosmetics, drugs, hotels, slaughterhouses, and other consumer goods and facilities related to these goods will be protected by the mandatory Halal Law.

- A Halal certificate can be requested from all manufacturers and importers or distributors.

- They must first be Halal-certified by an agent in their home country, so that foreign companies wishing to sell goods must obtain Halal certification in Indonesia. The Halal certification body must also obtain permission from BPJPH.

- Your company does not have to be Muslim or composed only of Muslims. The only thing you need to do is comply with Halal laws at every step of food production.

- For your raw materials, you do not need to apply for a separate Halal certificate, but they all need to meet Halal requirements.

- BPJPH has an active office in Jakarta and currently has no online platform. We recommend you consult a local Halal certification body in Indonesia for details.

How to Apply for Halal Certification in Indonesia?

Your business and goods need to obtain permission from the Jakarta Ministry of Religious Affairs, because the new BPJPH office cannot yet accept applications and there is no online platform for applications.

The approval process may also require product records, applicant details, the nature and form of the goods, product descriptions and additives used, and the overall production procedure.

BPJPH will provide a special identification number until your company is registered in its system; this number must be placed on all packaging or the items themselves.

From the list issued by BPJPH, you need to select an LPH (private Halal inspection) body. Then, to conduct inspection and/or Halal food testing, BPJPH assigns the LPH. To verify, it submits the inspection report to BPJPH.

The relevant inspection will be conducted by the LPH body on your goods or services, including the ingredients found in food specimens. If clarification of suspicious content is needed, BPJPH may request further laboratory inspection.

Then you need to pay the relevant fees according to the size of the company.

The results of the LPH test will be reported to MUI (the Indonesian Ulema Council's Institute for Food and Drugs). After BPJPH acknowledges the laboratory inspection results, MUI will declare fatwa approval (Article 32).

BPJPH provides a Halal certificate in case the goods obtain MUI fatwa certification, and they will be classified as Halal food.

If all reports meet standards, the whole process will take more or less 60 days. The Halal certificate issued by BPJPH is valid for 4 years, unless the goods' content changes during this period.

Why Should You Hire a Halal Certificate Consulting Company?

Halal certification in Indonesia is a multifaceted procedure that may seem particularly confusing to foreign companies. In addition to the time and resources you invest in the process, registration and testing fees will increase the total production cost of small and medium-sized enterprises, especially those in the food and beverage industry. This is why all enterprises, especially SMEs, should not waste any time by consulting a Halal certification body in Indonesia.

If you wish to own a company and need Halal food approval, you need to pay attention to information. If you are not sure how to obtain Halal certification, or you do not yet know whether your goods or services should be Halal-certified, you can always contact SINOQUAL. We will assist you with every step of applying for product sample testing and certification approval across all the different government agencies.

Why Choose SINOQUAL to Handle Indonesian BPJPH Halal Certification?

1. Our certification service will be the best. For any issues with documentation, we will provide solutions, see whether there are alternatives, and make more effort. We will not, like some consulting companies, throw all the problems to the enterprise and ignore them, leaving the enterprise to figure it out itself;

2. We will complete the Indonesian Halal certification the fastest, driving the progress throughout and completing it most efficiently;

3. Our fees are the most advantageous, with a starting price at least 10,000-20,000 yuan cheaper than others doing MUI, which can save enterprises a large expense;

4. We strictly comply with Indonesian BPJPH Halal application regulations. Regarding raw material qualifications, we will not, like some agents, exceed the standard scope and force enterprises to provide MUI qualifications; all source manufacturers can provide supplementary documents according to Indonesian policy.

5. Subsidies of up to 50% (in the form of tax rebates) are available. We can assist enterprises in applying for SME subsidies - the fastest, most cost-effective, best service experience, and most fair execution of Indonesian certification standards - so that enterprises truly save time, effort and cost. Complete the certification work together with SINOQUAL, and no longer fight alone!