Understanding the process and requirements of Indonesia halal certification

Are you planning to start a business in the food, cosmetics, or health industry? With a rapidly growing Halal market, the demand for Halal-certified products is on the rise, as consumers seek assurance that the products they use adhere to Halal requirements. Obtaining Indonesia Halal certification for your products is a wise move to tap into this expanding market and attract more customers.

In 2022, the Indonesian Halal market reached $46.7 billion, increasing by 9% from the previous year and highlighting the country’s significant position as a major player in the global Halal industry. 

This article provides a detailed guide on obtaining Halal certification in Indonesia for both large-scale and MSME businesses. 

Mandatory Halal-certified products in Indonesia

In Indonesia, it is necessary for certain product categories to be Halal certified. Without a Halal license, these products cannot be sold in the country.

A list of Halal-certified product categories has been established in Indonesia, including food and beverages, pharmaceuticals, and cosmetics.

CategoriesProducts
Food and beveragesProcessed foods, fresh produce, meat and poultry, beverages
Slaughtering service products and slaughtering serviceButchers, abattoirs
Traditional drugs, quasi drugs, and health supplementsMedicines, supplements
Cosmetics, chemical products, and genetically engineered productsMakeup, skincare products, chemical-based household products

Exemption for Halal Certification of products from prohibited materials

The Government Regulation No. 39 of 2021, issued by the House of Representatives and the President of Indonesia, outlines the exemptions for Indonesia Halal certification. This regulation explains if a product is made from ingredients that are considered haram or prohibited in Islamic Law, it is exempted from the obligation to be Halal-certified. 

Prohibited Products include:

  • Alcoholic drinks (root beer, bailey’s whiskey, beer with 0% alcohol)
  • Pork, dog, and its derivatives (hot dog, corn dog, ham, bacon)
  • Symbols, images, names, words, or shapes of products that describe disobedience (Rawon Syaitan/Setan).
  • Products that are made with any artificial flavor, citric acid, lecithin (Emulsifier).
  • Haram products according to Islamic Law which include:
    • Pigs, dogs, and animals that are not properly slaughtered or dead for a long time (carrion).
    • Products that contain blood or blood products, such as blood sausage or blood pudding.
    • Products that contain alcohol or other intoxicating substances, such as beer, wine, or liquor.
    • Products that come from wild or fanged animals that are not domesticated, such as snakes, tigers, or sharks.
    • Products that come from human body parts, such as skin or bones.

The process for securing Indonesia Halal Certification for different business types 

The Omnibus Law in Indonesia made Halal Certification mandatory for food, cosmetics, and medicinal products. According to this law, there are two types of certification processes depending on the size of the business; the general process (for large-scale businesses) and the self-declarative process (for MSMEs). 

Emerhub helps businesses to secure Indonesia Halal certification by registering them through the general certification process or through the self-declarative process.

General Halal Certification

Large-scale businesses in the food, health, and cosmetic industries with assets exceeding IDR 5 billion follow the general Halal certification process in Indonesia. 

Step 1Verification stageSubmitting an application to the Halal Product Assurance Organizing Agency (BPJPH)
Step 2Evaluation stageInspection done by a Halal auditor
Step 3Review stageDetermination of the Halal status by the Indonesian Ulema Council (MUI)

Step 1: Submitting an application to the Halal Product Assurance Organizing Agency (BPJPH) 

Investors planning to apply for Halal certification must submit a written application along with the required documents to the Halal Product Assurance Organizing Agency (BPJPH). 

Required documents

Halal certification application includes the following documents. 

  • Initial Business Identification Number (NIB) or other documents that clearly specify whether you have a business license, including NPWP, SIUP, IUMK, IUI, NKV. 
  • A photocopy of the ID 
  • Curriculum Vitae
  • A copy of the Halal Supervisor Decree and the Halal Supervisor Certificate
  • Brand and Type of Product
  • A list of the goods and supplies used
  • Product management process
  • Documents of the Halal Assurance System

Application review

BPJPH reviews and verifies the application within one business day and assigns it to the Halal Inspection Institution (LPH) for evaluation. 

Ensure the success of your business with Emerhub. Our knowledgeable consultants provide you with assistance throughout the company Halal certificate registration process in Indonesia. 

Step 2: Inspection by a Halal auditor 

After receiving the Halal certification application from BPJPH, the Halal Inspection Institution (LPH) appoints a Halal auditor to inspect and study the product or service. 

His duties are as follows:

  • Conducts an on-site inspection of the production facility and reviews the product or service to verify that it meets the Halal certification requirements.
  • Evaluates the production process of the product or service, as well as any ingredients and materials used in the production process.
  • Collects samples of the product or service for laboratory testing and analysis.
  • Prepares a report with the findings of the inspection and submits it to the LPH for review.

Report review

The LPH reviews the report and determines whether the product or service meets the Halal certification requirements. If it does, the LPH forwards the report to the Indonesian Ulema Council (MUI).

Timeline

The LPH completes the inspection within 15 business days. 

Step 3: Determination of the Halal status by the Indonesian Ulema Council (MUI)

After receiving the report from the LPH, MUI holds a Halal Fatwa Assembly. It is a meeting of experts and relevant authorities including LPPOM MUI ( institute for the study of food, drugs, and cosmetics) and the MUI Fatwa Commission to determine the Halal status of the product or service. 

  • The experts and authorities in the Halal Fatwa Assembly evaluate the product or service based on Islamic principles and guidelines.
  • It issues a fatwa, which is a ruling on the Halal status of the product or service.
  • If the fatwa determines that the product or service is Halal, the applicant receives a Halal certificate from MUI.
  • If the fatwa determines that the product or service is not Halal, the applicant is notified of the reasons for the denial.

Timeline

The Halal Fatwa Assembly is held within 3 business days from the date of receipt of the Halal certification from the LPH.

Renewal of Halal Certificate

Halal certification is valid for four years, however, if the business owner changes the composition of the product within this time period, they must renew their Halal certification immediately. Renewal of the Halal certification should be completed no later than three months before the expiration date of the current certificate. 

To renew, the business owner must provide a copy of the existing Halal certificate and a declaration letter stating that they have not made any changes to their products since the previous certification. This process ensures the continuous compliance of the business with the Halal requirements.

Self declarative Halal Certification

Micro, small, and medium enterprises (MSMEs) in the food, cosmetics, and health industry with assets ranging from IDR 50 to IDR 500 million apply for Halal certification through the self-declaration process. 

Step 1 Verification stageSubmission of application at the OSS portal
Step 2Evaluation stageDocuments review done by the Halal Production Process (PPH)
Step 3Review stageDetermination of the Halal status by the Indonesian Ulema Council (MUI)

Step 1: Submission of application at the OSS portal

Local investors looking to start a food, health, and cosmetics MSME in the country must submit a Halal certification application through an online system- OSS. This facility is provided to the MSMEs only because it allows them to obtain Halal certification with less paperwork, lower costs, and faster processing times, enabling them to compete in the market. 

The online application process is as follows.

  • Create an account on the OSS portal as per your business and personal details.
  • Select the Halal certificate option and fill out the necessary information in the online application form provided by BPJPH.
  • Choose the self-declaration option and provide the required documents, including:
    • BPJPH Application form 
    • Statement letter of product and material Halal status
    • Product processing chain documents (starting from purchasing documents to distribution)
    • Halal supervisor documents (KTP, Curriculum Vitae, letter of appointment)
    • Latest photos and videos during production

Step 2: Documents review by the PPH

The PPH is an individual with a permit/certificate to evaluate the Halal certification process for MSMEs. 

  • The PPH reviews the submitted documents and ensures that they are valid and meet the Halal certification requirements.
  • If the documents are complete and valid, the PPH submits them to the MUI (Indonesian Council of Ulama) for further review.

Timeline

PPH completes the document review and evaluation in 10 days. 

Step 3: Determination of the Halal status by the Indonesian Ulema Council (MUI)

  • After the MUI has reviewed and evaluated the documents submitted by the PPH, they convene a Fatwa Assembly to determine if the products produced by the MSME business owner are eligible for Halal certification.
  • The Fatwa Assembly conducts a thorough evaluation of the products and production process to ensure that they meet the Halal certification standards.
  • If the Fatwa Assembly approves the application, they issue a Halal certificate to the MSME owner. He accesses the certification on the OSS portal. 
  • The Halal certificate will be valid for two years, and the MSME business owner must display the certificate in a prominent place within their business premises.

Timeline

The Halal Fatwa Assembly is held within 3 business days after the MUI receives the documents from the PPH.

Specific deadlines for securing a Halal certificate

The implementation of the Halal Certification is gradual, with different product categories having different deadlines for obtaining the Halal certification. 

Businesses in Indonesia are currently allowed to sell their products without Halal certification until the deadline approaches. However, it is necessary that they comply with the Halal certification requirements and start the certification process well in advance of the deadline to avoid any potential disruption to their operations in the future.

ProductsDeadlines
Food, beverage, slaughtering service products, and slaughtering service17 Oct 2019 – 17  Oct 2024
Traditional drugs, quasi-drugs, and health supplements17 Oct 2021 – 17 Oct 2026
Cosmetics, chemical products, and genetically engineered products17 Oct 2021 – 17 Oct 2026

Emerhub helps businesses secure Indonesia Halal Certification

Emerhub assists businesses in preparing and submitting their application for certification and provides consulting services to ensure compliance with the Halal certification requirements and regulations in Indonesia. 

Talk to an Emerhub consultant today for assistance for fill in the form below.

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