How Product Classification Directly Affects the Cost of Indonesian Halal Certification

In the Indonesian market, Halal certification is a necessary path to market for many foods, cosmetics and even packaging materials. However, when applying for halal certification, many companies are confused by the complex grouping rules — for the same type of product, the cost of halal certification can differ several times depending on its grouping. Take ice cream as an example. You may think it is just a cool summer dessert, but in the world of Indonesian halal certification, it is a star member of the “dairy group” — even if it is made into an ice-cream drink, if the recipe involves dairy, it must follow the halal certification rules for dairy products. This strict grouping logic directly determines whether a company's certification cost is high or low. It is worth noting that Indonesia's halal certification regulator (BPJPH) and the Indonesian Food and Drug Authority (BPOM) use mutually independent product-classification systems. Under BPOM's Food Classification Guidelines, ice-cream products have a dual classification possibility based on dairy content: ice cream containing dairy is classified as a dairy product, while ice cream without dairy (such as water ice) is classified as an edible ice product. However, BPJPH's halal certification classification mechanism does not directly follow BPOM's food classification standards, which may cause the same product to be placed in different regulatory groupings for BPOM registration and BPJPH certification. Related reading: Indonesia BPJPH Halal Certification Guide — Food Edition. Indonesian BPJPH halal certification divides products into 15 major categories, of which the food category is further divided into 18 sub-categories — the sheer number shows the complexity, and the classification criteria are often surprising. These rules stem from the strict judgment of product ingredients and processing techniques in Indonesian BPJPH halal certification, and a small slip can lead into a trap. In the past, many companies going overseas would habitually apply their domestic experience — charging into the Indonesian market with a business licence, production licence and ISO certification. In fact, this “experience-ism” thinking can lead companies into the rule traps of overseas markets. Things such as grouping in halal certification, special testing requirements for animal-derived materials, and halal taboos for cosmetic ingredients — these localised rules are like hidden reefs that can run a company's overseas ship aground at any time. Professional matters still need professionals. SINOQUAL, as a one-stop service provider with twenty years of experience in certified-food certification (Halal and Kosher certification) in China, aims to help companies go overseas smoothly and obtain BPJPH halal certification in the shortest time and at the lowest cost, avoiding the chain reactions that minor rule differences can cause and that can cost a company dearly. In Indonesia's halal market, for example, incorrect product grouping not only means adding unnecessary testing items — making what should be a simple certification process long and complex — but may also force the entire halal certification process to start over, seriously delaying a product's launch plan; and the most direct blow is severe budget overruns, with companies often bearing up to 50% extra cost for these “hidden rules.” This is precisely the key reason why many companies that lay out the Indonesian market based on experience ultimately come to grief.