The change that had long been expected finally came into effect. The Indonesian Council of Ulama (MUI) had delegated its authority to issue the halal certification to a newly established institution. The inauguration of the body of Halal Product Assurance Organizing Agency (BPJPH) happened on October 11th, 2017. It’s been three years after the law 33/2014 had been issued and its role had been mandated. How will it change the process of Indonesia halal certification? What can customers expect with this transfer of authority?
Reason for the Change
Before the government authorized the law no. 33 of 2014 , only the Indonesia Council of Ulama (MUI) had the power to administrate a halal certificate. However, MUI was not well enough to manage the Indonesia halal certification.
The newly inaugurated body of the BPJPH is expected to improve transparency and accountability of the procedure as well as to prevent illegal practices including bribery. The procedure should be more straightforward—thanks to its integration through an online system with payments made through appointed banks.
Current Effects of the Law 33/2014
Even though BPJPH holds the highest authority, the body is still not ready for an operation. This new process will start from October 17, 2019 onwards.
However, investors willing to certify their product must pay a closer look at the evolution of the power split of the institutions and changes that go hand in hand with it. There is no doubt that the halal certificate has become a factor that has a significant influence on a successful market entry in Indonesia, a country with a conservative Muslim majority.
The law no. 33 in 2014 that regulated procedures and applications for halal certification brought changes about halal labelling as well. Gradually imposed on every product related to food, beverages, and cosmetics, pharmaceutical, chemical, biological, genetic modified and utility goods, therefore all of these products distributed in Indonesia must be halal certified or labelled as non-halal.
In October 2019, every product in Indonesia must be clearly labelled as either halal or non-halal.
Although a clear deadline was set—October 2019—it is not sure whether the ambitious plan can be implemented. According to the Indonesian Food and Beverage Association, over the next 24 months, all company should certify their new products with the current frequency, tens of thousands of new products to be exact. The body will issue around 7,000 halal certificates annually.
However, it is advisable to get your products certified as soon as possible, products with halal certification will have a remarkable advantage on the Indonesian market.
Indonesia Halal Certification Process
The New Application Process
Nowadays, Indonesia halal certification process involves two parties: the MUI and the Indonesia National Agency of Food and Drug Control (BPOM). Furthermore, MUI has established a special body protecting Muslim consumers from consuming particular products. For instance, foods, drugs and cosmetics, the Assessment Institute for Food, Drug and Cosmetics (LPPOM-MUI).
Application Process as Expected
Due to the Law No. 33/2014, the role of MUI will remain critical in the Indonesia halal certification process. Even though BPJPH will primarily function as a regulator with its right to issue, revoke, and manage all administration related to halal certification of domestic and imported products, there should be a halal recommendation or fatwa from MUI certifying Halal Inspection Agency (LPH).
Currently, the only existing LPH is MUI. A number of parties will become LPH in the future. Any government institution and communities with equal opportunities have the right to establish LPH in assisting BPJPH so long as it meets the following requirements:
- Own office and its equipment
- Accreditation from BPJPH
- At least three halal auditors
- Own laboratory or a cooperation agreement with other institutions that have an accredited laboratory
Steps for obtaining the halal certificate:
- An applicant submits a written application for the halal certificate to BPJPH. The certification process will need product’s documents, applicant’s data, name and type of the products, list of products and ingredients used, and production flow process.
- BPJPH appoints the existing LPH to conduct an inspection and/or halal product testing.
- Submit the result of the inspection to BPJPH for verification. In case of doubtful halal material, BPJPH asks for another laboratory test to clarify the last result.
- MUI will release fatwa issuance (Article 32) after BPJPH accepts the result from laboratory test.
- BPJPH issues a halal certificate if and when the MUI fatwa approves the products.
In case all documents are in accordance with the requirements, then the whole process will take less than 60 days. The halal certificates issued under the BPJPH will be valid for four years unless the products change their composition, as opposed to the current regulation that stipulates two years.
Cekindo takes pride in its years of experience in market entry services to foreign investors and companies in Indonesia. We are readily available to assist you with your application for a halal certificate for your products. You may directly contact us here, email us at firstname.lastname@example.org or fill in the form below and we should be able to get back to you soonest with a resolution to your queries.
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