1. Definition & Background
Halal product refers to the product that has been declared Halal lawfully according to Islamic sharia. Halal is an Arabic word meaning 'lawful' or 'permitted'. In reference to Halal food, it is a dietary standard prescribed in Muslim scripture. Indonesia has around 87% Muslim, which means roughly 230 million of the 270 million total population follow the Islamic faith. In Indonesia, consumers tend to gravitate toward products with Halal labels to comply with the teachings of their religion.
2. Competent Authority and Responsibilities
The regulatory body for Halal certification in Indonesia is known as BPJPH (The Halal Product Guarantee Agency), which has the duty and function to ensure the halalness of products that enter, circulate, and trade in Indonesia.
Indonesian Ulema Council (MUI) is the top Islamic scholars body in Indonesia, and responsible for determination of product halalness.
3. Regulatory Framework
The Halal Product Law ("Halal Law"). The law regulates and makes it mandatory that consumer products including food and beverages and even related services that enter and are traded in the country must be Halal certified.
Job Creation ("Omnibus Law"), amending several articles of Halal Law, intending to ease the Halal certification.
Government Regulation (GR) 39/2021("The Organization of Halal Product Assurance"), is a regulation on the implementation of the Omnibus Law.
4. Halal Certification
Halal Certificate is the recognition of product's halalness issued by BPJPH. Products that enter, circulate, and are traded in the territory of Indonesia must be Halal-certified. Halal certification started on a voluntary basis for food and beverage products on Oct. 17, 2019 and will become mandatory since Oct. 17, 2024. The certification applies to both domestic and imported products.
4.1 Material of Halal Product
The scope of material consists of raw material, process material, additional material, and auxiliary material.
Halal material may come from:
c) microbe; or
d) material obtained through chemical, biological, or genetically modified process.
Forbidden material which comes from forbidden animal includes:
c) pork; and/or
d) animal that is slaughtered not in accordance with sharia.
Other material comes from forbidden sources need to be determined by the Minister based on MUI fatwa.
4.2 Process of Halal Product
The location, place, and equipment of Halal product process must be separated from the location, place and equipment for slaughtering, processing, storing, packaging, distributing, selling and presenting of non-Halal products, and must:
a) be maintained for its cleanness and hygiene;
b) be free of najis (defiled);
c) be free of non-Halal material.
4.3 Halal Label
BPJPH determines the design of Halal label which is nationally applicable. Halal label must be easy to see and read as well as not be easy to erase, detach, and damage.
Halal label contains at least:
a) logo; and
b) certificate number or registration number.
* The logo is an image, a writing or a combination from image and writing.
Business operators that have obtained Halal Certificate must attach the Halal label on:
a) product packaging;
b) specific part of the product; and/or
c) specific place of the product.
The attachment of Halal label shall be excepted for:
a) products whose packaging is too small to include all the information;
b) products that are sold and packaged directly in front of buyers in small quantities;
c) products that are sold in bulk.
4.4 Halal Certificate Application
Halal Certificate application is submitted by business operators to BPJPH in written form，and must be equipped with document of:
a) business operator's data;
b) product name and type;
c) product registration and material used;
d) product manufacturing process.
4.5 Renewal of Halal Certificate
The Halal Certificate is valid for 4 years since being issued by BPJPH, unless there is a change in the material composition. The Halal Certificate must be extended by business operators by applying for renewal no later than 3 months prior to the expiry date of the Halal Certificate.
4.6 Non Halal Information
Products that are originated from prohibited materials shall be obliged to include non-Halal information in the composition of materials in the form of pictures, writing, and/or the material names in different color. Non-Halal information shall be obliged to, by observing the provisions of legislations, be visible and readable, and cannot be easily wiped, removed and tampered.
Non-Halal information can be in the form of pictures, signs and/or writing that shall be attached on:
a) product packaging;
b) a certain part of the product;
c) a certain area on the product.
Businesses intending to import Halal products that have received Halal certification from abroad must register such products with BPJPH before they can be distributed in Indonesia. However, this only applies if the products were certified by an overseas Halal institution that has a cooperation agreement or acknowledgment from BPJPH. A current list of all recognized foreign (non-Indonesian) Halal certification bodies can be found on the Indonesian Ministry of Religion's website.
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