What You Need to Know About Halal Certification in Indonesia
When you are conducting business, you should always consider the culture of your target market. This shows that you are doing your research and you have care for your customers.
In Indonesia, the majority or 90 percent of its 260 million population are Muslims. This makes the country the largest Muslim nation in the world, which means that it is also a large market for Halal products and services. If you are operating in this country, you might need to secure Halal certification for Indonesian companies.
“Halal” is an Arabic word which means “lawful or permissible.” While it is usually affiliated with foods and drinks, Halal is incorporated in daily life.
But to put it simply, Halal means that food, drugs, cosmetics, and other products do not have any ingredients that are “haram.”
“Haram,” meanwhile, means “forbidden” by the Islamic law. It refers to products or services that contain or involve pork, animal blood, alcohol, dead animals, and poisonous animals. Islamic Law considers slaughtering animals forbidden too.
Halal incorporates raw materials, product handling, factory facilities, manufacturing machinery, packaging, storage, and logistics, among others.
Obtaining Halal certification for Indonesian companies is a must to prove that your products and services offered to the Muslim population are halal and in compliance with the Islamic laws.
New Halal Law
In October 2019, the Indonesian government made the Halal Product Law effective. Products and related services need to be halal-certified, compliance deadline setting 2022
The Indonesian government, with this move, is putting value on the beliefs of the Muslim population, making sure they are consuming the products and services that are in accordance to their beliefs.
Take note that the Halal Law is regulating the materials, processing, and certification of Halal products.
This new law also ordered the formation of the Halal Products Certification Agency (BPJPH). It is a government agency recognized under the Ministry of Religious Affairs tasked with issuing Halal certifications.
According to the new government agency, the mandatory Halal labeling law will initially cover the food and beverages before cosmetics, drugs, and other products and related services.
The Government Regulation 31, series of 2019, outlines the scope and requirements for any certification for Halal products and services.
It highlights the kinds of products allowed to be imported, traded, and distributed in Indonesia that need Halal certification. This also points out the types of services requiring such certification.
The regulation also lays out the following provisions:
- You must register Halal auditors so they can validate if a product or service is Halal. must accomplish three testing process.
- Need to label Non-Halal products properly as well .
- You must follow the registration process of international Halal certification agencies, too.
The same regulation also orders that the Halal certification agency work with state-run and private Halal inspection bodies when doing testing of food and products. The results will be presented to the Food and Drug Research Institute of the Indonesian Ulema Council—the body in-charge of approving the sample under evaluation.
How to Get Halal Certification in Indonesia
After knowing the basic concepts of Halal and its governing laws, the next step is for you to outline the process of obtaining Halal certification for your products and services. Remember that the time is ticking. These products and services need to be Halal-certified in 2022 the government said.
Follow these steps:
- Company and product or service offering need to be register with the Ministry of religious Affairs located in Jakarta.
- After registering, the BPJPH will be giving you a special registration number. Need to place on all packaging or even on the products themselves.
- You will choose a Halal inspection agency from the list given by the Halal certification body.
- Pay the necessary fees. These differ depending on the size of your company.
- Relevant sample testing on your products or services will be conducted.
- The Food and Drug Research Institute of the Indonesian Ulema Council must receive the results. The body will give the final approval.
Be patient when getting Halal certification because the whole process might take around 2 months. The validity of a Halal certification is for four years. You must undergo another certification process should you modify the ingredients of your products.
It might be time-consuming but having Halal labels on your products can be beneficial in the long run. You will be able to attract more customers given that majority of Indonesian population is Muslim.
If you are looking to apply for Indonesian business license, do not hesitate to reach out to 3E Accounting. We are offering quality accounting services and top-notch business advisories. Let us help you turn your dream business into reality.