Indonesia Halal Certification: Registration & Regulations Guide

4 min read|Last Updated: July 2, 2024|

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 can affect 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 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:

  1. Does not stem from or consist of any part or item from animals that are forbidden (pig, carrion, having claws, talons, or fangs, etc.) to Muslims by Islamic Law.
  2. Food, when preparing, processing, manufacturing, packaging, storing, or transporting, does not contact or stay near any forbidden food that contains impurities as defined by Islamic Law.
  3. Animals that are allowed and have been slaughtered according to Islamic Law, are not killed by strangulation, or killed by wild animals.
  4. Food, whether animal, vegetable, fruit, or grain, needs to be Tayyib (healthy) and does not include any substance that Islamic Law considers impure (such as alcohol).
  5. Food uses equipment or utensils that are free from impurities as defined by Islamic Law for preparation, processing, or manufacturing.
Indonesia Company Secretary Angela

Halal Certification Regulations in Indonesia

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

  1. The Food, Drug and Cosmetics Assessment Agency (LPPOM), and
  2. 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 need to go through a procedure to establish that the materials used met the halal requirements approved by LPPOM and MUI 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 a Halal certificate in Indonesia are down 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 under process, the auditor will look at halal substances. An auditor will perform a laboratory examination if the product is positive with a non-halal material.

Step 3 – The examination results will send to you by the 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:

  1. If halal, a Halal Certificate will be issued
  2. If not, the proposal will be rejected

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

Benefits of Obtaining a Halal Certificate in Indonesia

There are several benefits which producers will receive in 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-Muslims who are Halal consumers.
  • As a confirmation for Muslim customers that the food served is Halal and is by Islamic Law.
  • Assure customers that the food served is Halal and healthy and that the premise’s hygiene and sanitation procedures are 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 for their needs. There are a few business entities which are:

  1. Local PT Company – only local Indonesians can set up such an entity
  2. PT PMA Company – foreign-owned entity
  3. Representative Office (KPPA) – only for market research purposes without any sales generated

Here’s the basic procedure for Indonesia company registration:

  1. Choose a business structure
  2. Choose a unique company name
  3. Have a registered office (or virtual office for local PT company)
  4. 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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