Are you planning to launch a business in the food, cosmetics, or health industry in Indonesia?
Securing Indonesia Halal certification is an absolute necessity for accessing the market and significantly boosting your customer base.
In this article, we will provide you with a comprehensive guide on the Halal certification process and requirements in Indonesia, ensuring you have the essential knowledge to succeed in the market.
Mandatory Halal-Certified Products in Indonesia
In Indonesia, certain product categories must be Halal certified. Without a Halal license, these products cannot be sold in the country.
1. Food and Beverages
2. Traditional Drugs & Supplement
3. OTC Drugs & Limited OTC Drugs
4. Hard drugs excluded psychotropics
5. Fashion, Headdress & Accessory Products
6. Household, Muslim Praying, and office stuff
Exemption for Halal Certification
Government Regulation No. 39 of 2021 outlines exemptions for Indonesia Halal certification. If a product is made from ingredients considered haram or prohibited in Islamic Law, it is exempted from the obligation to be Halal-certified. These prohibited products include:
- Alcoholic drinks
- Pork, dog, and their derivatives
- Products with symbols or names that describe disobedience
- Products made with artificial flavor, citric acid, lecithin
Halal Certification Process for Different Business Types
The Omnibus Law in Indonesia makes Halal Certification mandatory for food, cosmetics, and medicinal products. There are two types of certification processes depending on the size of your business: the general process for large-scale businesses and the self-declarative process for MSMEs.
General Halal Certification Process (for large-scale businesses):
Verification Stage: You submit an application to the Halal Product Assurance Organizing Agency (BPJPH) with the required documents.
Evaluation Stage: A Halal auditor from the Halal Inspection Institution (LPH) inspects your production facility and reviews your products.
Review Stage: The Indonesian Ulema Council (MUI) determines the Halal status through a Halal Fatwa Assembly.
This process is thorough and is suitable if your business has significant assets and production capacities.
Self-Declarative Process (for MSMEs):
If you run a Micro, Small, or Medium Enterprise (MSME), you can self-declare your compliance with Halal standards.
This process is simpler and less costly, designed to fit the capacities and resources of smaller businesses.
You still need to follow specific requirements and guidelines to ensure your products meet Halal standards.
Emerhub can assist you in securing Indonesia Halal certification by guiding you through either the general certification process or the self-declarative process, depending on the size and needs of your business.
Renewal of Halal Certificate
Halal certification is valid for four years. If you change the product composition, you must renew the certification immediately. Renewal should be completed no later than three months before the certificate’s expiration date.
Halal Assurance System (HAS 23000) and Its Importance for Getting Halal Certification
The Halal Assurance System (HAS 23000) ensures your products meet halal standards. It has key components that guarantee your products' halal status and make getting halal certification easier.
Key Components of HAS 23000
Commitment & Responsibility
Your top management needs to show commitment by forming a Halal Management Team and giving them the needed resources. This team plans, implements, evaluates, and improves your halal system.
Halal Policy
You need a written halal policy showing your commitment to consistently making halal products, and share it with everyone involved.
Halal Management Team
This team oversees your halal system. Their roles must be clear, and they need the right resources to do their job well.
Training
Regular training is a must to boost knowledge and skills about halal standards. Do it at least once a year and make sure it’s done by qualified people.
Material Management
Classify materials into critical and non-critical. Critical materials need documents proving they’re halal. Have proper procedures for handling all materials.
Production Facilities
Your production setup must meet halal standards. Follow specific guidelines for food, cosmetics, pharmaceuticals, and restaurants to avoid cross-contamination.
Written Procedures for Critical Activities
For critical activities like using new materials or changing production processes, have detailed written procedures to ensure halal compliance.
Handling Non-Compliant Products
Have a plan for dealing with products that don’t meet halal standards. These products should be destroyed or recalled to avoid selling them to halal consumers.
Product Standards
Your products should not resemble haram items. All variants under the same brand must be registered and follow halal guidelines.
Tracking Capability
Set up a system to track all certified products back to their materials and production process.
Common Myths About Halal Registration in Indonesia
1. Halal Certification Is a One-Time Process
Some believe once you get halal certification, you're set forever. However, halal certificates must be renewed periodically (usually every four years) to ensure ongoing compliance with halal standards.
2. Only Muslim-Owned Businesses Can Get Halal Certification
It's a common misconception that only Muslim-owned businesses can apply for halal certification. In fact, any business, regardless of ownership, can seek halal certification as long as they comply with the required standards.
3. Halal Certification Is Expensive and Time-Consuming
Many think that obtaining halal certification is prohibitively expensive and takes too much time. While there are costs involved, they are generally reasonable, especially for MSMEs. The process has also been streamlined to be more efficient.
4. Halal Certification Is Only About the Final Product
Halal certification covers the entire supply chain, from sourcing raw materials to production and packaging. Every step must comply with halal standards to ensure the final product is halal.
5. All Ingredients Need Individual Certification
Not all ingredients require individual certification. If they are on the Positive List, they do not need separate documentation.
6. Halal Management Team Must Be Muslim
The halal management team does not need to be Muslim but must understand HAS 23000 and ensure compliance.
7. Foreign Halal Certification Is Not Recognized
Many think foreign halal certifications are not accepted. However, if they comply with Indonesian regulations, foreign certifications can be used.
Unique Halal Certification Requirements in Indonesia
Indonesia has unique requirements such as not using non-Halal names or symbols. Examples include:
- Rum Raisin Ice Cream: The name cannot contain non-Halal words.
- Satan Noodles: References to evil spirits are forbidden.
- Valentine’s Chocolate: Not compliant with Sharia practices.
Partner with EMERHUB in Indonesia
Getting Halal certification in Indonesia is crucial for your business if you are operating in the food, cosmetics, and health industries.
Emerhub can guide you through the halal certification process. Our local experts ensure your products meet Halal standards and are properly labeled for the Indonesian market.
Contact us via the link below.