Navigating Indonesia’s New Halal Certification Rules

In May 2024, Indonesia postponed the halal certification deadline for MSMEs, altering the structure for domestic and foreign products, requiring registration of foreign halal certificates before distribution.

Postponement of Halal Certification for MSMEs

In May 2024, the Indonesian government announced the postponement of the halal certification requirement for Micro, Small, and Medium Enterprises (MSMEs). This decision emerged from a limited cabinet meeting led by the incumbent President and relevant ministers. The deferment aims to accommodate the challenges faced by these enterprises in obtaining halal certification.

Revised Deadlines for Halal Certification

Initially, under GR 39/2021, the government had set a universal deadline of 17 October 2024 for the halal certification of all food and beverage products, ingredients, and services involving slaughter, irrespective of the business scale. However, GR 42/2024 revised the deadline structure to allow for a more staggered approach, considering the capabilities and resources of varying business sizes.

Provisions for Foreign Products

GR 42/2024 also clarified the halal certification process for foreign products, emphasizing that businesses must apply for certification through an importer or authorized representative based in Indonesia. If a foreign product is already certified halal by a recognized institution in its origin country with a mutual agreement with BPJPH, further certification in Indonesia is unnecessary. The foreign halal certificate must be registered in Indonesia following GR 39/2021 guidelines, and its validity will correspond with the original certificate’s duration.

Understanding Indonesia’s Updated Halal Certification Regulations

Indonesia’s new halal certification rules have introduced a significant shift in how businesses operate in the country. The government aims to streamline and standardize the halal certification process, making it mandatory for a wide range of products, from food and beverages to cosmetics, to adhere to Islamic law. This move reflects Indonesia’s position as the world’s largest Muslim-majority nation and its commitment to ensuring the authenticity and compliance of products with religious standards. As businesses adjust to these requirements, they face challenges in adapting their supply chains and ensuring timely compliance to avoid market disruptions.

For local and international businesses, navigating these rules demands strategic planning and investment. Companies must engage with the Halal Product Assurance Organizing Agency (BPJPH) for certification and align with local halal auditors for thorough compliance assessments. The requirement extends to small and medium enterprises, which may struggle with the financial and operational demands of certification. However, the new rules also present opportunities for businesses to gain the trust of Indonesia’s vast Muslim population by ensuring halal integrity. As these regulations evolve, ongoing dialogue between the government and industry stakeholders will be vital for a smooth transition.