Indonesia Halal Certification: Registration & Regulations Guide

4 min read|Last Updated: Oktober 3, 2022|

Indonesia is a Muslim country with the world’s largest Muslim population, the Indonesian government is quite stringent when it comes to Halal regulations.

All food, beverages, pharmaceuticals, cosmetics, chemicals, and organic items sold in Indonesia must have a Halal certification, according to Indonesian Regulation No. 33 of 2014.

Indonesian companies who are manufacturers of items or import these products such as the following are affected by the Halal Law:

  • Consumable goods

  • Chemical products

  • Medications

  • Cosmetics

What does Halal Mean?

Halal is an Arabic word that signifies ‘permitted’ or ‘authorised’ under Islamic law. The definition of halal is not defined in Law No. 33 of 2014. It simply defines halal in terms like ‘halal product’, ‘halal label’, and ‘halal certificate’. In terms of food, these are the listed ‘Halal’ criteria:

  • Does not stem from or consists of any part or item from animals that are forbidden (pig, carrion, having claws, talons, or fangs, etc.) to Muslims by Islamic Law.

  • Food when prepared, processed, manufactured, packaged, stored, or transported does not come in contact with or stored near any food that is forbidden and contain impurities as defined by Islamic Law.

  • Animals that are allowed and been slaughtered according to Islamic Law, not killed by strangulation, or killed by wild animals.

  • Food, be it animal, vegetable, fruit, or grain must be Tayyib (healthy) and does not contain any substance that is considered impure (alcohol) in Islamic Law.

  • Food that is prepared, processed, or manufactured using equipment or utensils that are free from impurities as defined by Islamic Law.

Indonesia Company Secretary Angela

Halal Certification Regulations in Indonesia

The two governing bodies for the halal certification in Indonesia are:

  • The Food, Drug and Cosmetics Assessment Agency (LPPOM), and

  • The MUI Fatwa Committee halal standard in Indonesia

Ingredients and equipment used to manufacture and make the products are supposed to be covered by the certifications. The Halal Product Protection Bill also imposed harsh penalties on violators, ranging from a two-year prison sentence and a fine of IDR 1 billion (USD 75,000.00) to an eight-year prison sentence and a fine of IDR 6 billion (USD 425,000.00).

Producers would be needed to go through a procedure to establish that the materials used met the halal requirements approved by LPPOM and MUI in order to acquire the Indonesia Halal certification. It is only then would the Fatwa Committee be able to declare the products produced as certified halal.

How to Apply for the Halal Certificate in Indonesia?

The steps to obtain Halal certificate in Indonesia are listed below:

Step 1 – Traders submit Halal Certificate requests to BPJPH, which subsequently determines a definitive schedule for assessing the desired goods.

Step 2 – When a product is being processed, the auditor will look at halal substances. An auditor will perform a laboratory examination if the product is positively contaminated with a non-halal material.

Step 3 – The examination results will be sent to BPJPH. Furthermore, BPJPH will work with MUI to determine if the product is halal or not by requesting that MUI hold a Fatwa Hearing that will last up to 30 days.

Step 4 – After MUI renders a decision, there will be 2 possibilities:

  • If halal, Halal Certificate will be issued

  • If not, the proposal will be rejected

Step 5 – Accepted Halal Certificate will be valid 4 years and must be renewed at least 3 months before expired day.

Benefits of Obtaining Halal Certificate in Indonesia

There are several benefits in which producers will receive in obtaining the halal certification in Indonesia. Examples of these benefits are as follows:

  • Increase a restaurant’s revenue and enhance its marketability especially to Halal consumers.

  • Widen the range of customers by attracting Muslim customers and non-Muslim who are Halal consumers.

  • As a confirmation for Muslim customers that the food served is Halal and is in accordance with Islamic Law.

  • Assure customers that the food served is Halal and healthy and the premise’s hygiene and sanitation procedures are in top-notch.

  • If planning to export, the Halal certificate will help to assure Halal consumers in importing countries

Indonesia Company Registration & Business Entities

To set up a company in Indonesia, one must decide on the type of business entity that is best suited to their needs. There are a few business entities which are:

Here’s the basic procedure for Indonesia company registration:

  • Choose a business structure

  • Choose a unique company name

  • Have a registered office (or virtual office for local PT company)

  • Register for a business license

KICKSTART YOUR COMPANY INCORPORATION IN INDONESIA TODAY

Come down to our office or get in touch virtually for an incorporation assessment.

FAQs

What is halal certification in Indonesia?2021-12-24T13:52:11+08:00

The halal certification process establishes if a product adheres to the Islamic law,” halal,” or if they contain pork or deviate from the Islamic law, “haram.” The Halal Product Guarantee Agency or Badan Penyelenggara Jaminan Produk Halal (BPJPH) oversees all halal certification processes. 

Is Halal certification mandatory?2021-12-24T13:52:06+08:00

Under new rules, meat from India no longer needs to be certified halal – following Muslim rules – before it is exported. 

Does halal mean no pork?2021-12-24T13:51:55+08:00

According to the Muslims in Dietetics and Nutrition, a member group of the Academy of Nutrition and Dietetics, Halal food can never contain pork or pork products (that includes gelatin and shortenings), or any alcohol. 

Are Indonesian products Halal?2021-12-24T13:50:38+08:00

Both Government Regulation 31/2019 and 39/2021 were enacted as part of Indonesia’s mandatory halal product certification scheme, covering a broad range of halal-related matters, including food, beverages, drugs, cosmetics, chemical and biological products, and other products. 

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