Getting Halal Certificate

[2023 Updated] Getting Halal Certificate in Indonesia

  • InCorp Editorial Team
  • 23 November 2023
  • 6 minute reading time

Getting a halal certificate will give you a trustworthy brand image for Moslem consumers, which means more profits for your business in Indonesia.

Indonesia has the biggest Moslem population in the world, stating that approximately 14 percent of the world’s Moslem people live there. That’s why the halal industry offers a very huge potential market in Indonesia for business people. Foreign chains, restaurants, Slaughterhouses, as well as catering businesses must also have this certification when they are targeting Muslim people. Some drugs and cosmetic industries should also obtain this certification to indicate that their products are Halal. In this article, you will get what’s the true meaning of the Halal certificate, the Halal standard, and the information procedure to get a Halal certificate in Indonesia.

Understanding Halal in Indonesia

Masjid Bengkulu - Cekindo

First of all, you need to know the meaning of Halal. Halal is a basic requirement of food, drugs, cosmetics, and other consumer goods that can be eaten, used, or applied directly to the bodies of Muslims. It must not contain any kinds of ingredients that are considered Haram—the opposite of Halal—mainly alcohol, pork or pork by-products, any kinds of animal blood, dead animals without slaughtering, and animals slaughtered in the name of other than Allah. Besides getting the Halal certificate, you also have to register your products under BPOM to prove that your products are beneficial for consumers and it does not contain any harmful ingredients.

All halal products can then put a Halal logo on the package. Indonesian consumers are aware of the existence of this Halal logo. It shows them which products can safely be consumed by Moslems and which cannot. The food or cosmetic products sold without the logo can be considered as not Halal or Haram, which means that Muslims (which is 88 percent of the total population in Indonesia) will likely avoid them.

Before we get deeper into halal certification in Indonesia—do you know the costliest mistakes cosmetic producers make when registering their products in the country? We have summarised them for you and explained why a distribution license service provider is the cheapest choice.

Cosmetic Products Registration in Indonesia

The Bodies Issuing Halal Certificates in Indonesia

The Halal Certificate is issued by Majelis Ulama Indonesia(MUI/The Indonesian Council of Ulama) after certain tests and analyses are done by Lembaga Pengkajian Pangan, Obat dan Kosmetika Majelis Ulama Indonesia (LPPOM MUI/The Assessment Institute for Foods, Drugs, and Cosmetics The Indonesian Council of Ulama) to see whether or not the products meet the requirement set by the Body.

Approved Foreign Halal Certification in Indonesia

Muslims (from pixabay) - Cekindo

Indonesia also approves Halal Certification from 25 Halal Certifier Bodies from 44 countries worldwide. The certification is valid only for products that are produced in the country where the approved halal certification is. The exception is for products that are made in Europe, which can take a halal certificate from any approved halal certification bodies across European countries.

However, it does not mean that LPPOM MUI will not ask for clarification. Companies will need to clarify some crucial things by submitting certain documents. For more information about this, you can contact us, and we will explain further regarding what foreign bodies are eligible for what products, what common questions and documents are asked to prove the Halal Products, etc.

 

Halal Certification Standard in Indonesia

All products that enter, circulate, and are traded in the territory of Indonesia must be Halal-certified by BPJPH/MUI. LPPOM MUI will ensure that the products are free from Haram ingredients and that the overall production processes meet the Halal standard, including the name of the products and the packaging.

Getting Halal Certificate Process

To obtain a halal certificate, the companies must register every product and follow the below process:

  1. The company should read the Halal Assurance System (HAS) and make sure that the materials, the product, and the production process meet HAS.
  2. Prepare all the documents needed to register your Halal application and give them to us, thus, our team will assist you in getting your Halal certificate.
  3. We will send you some more required documents, which you should fill in, and we will process all the procedures cooperate with LPPOM MUI
  4. Once the product meets all the requirements stated in HAS and passes all the laboratory tests, The company will receive a Halal certificate and a HAS Implementation Status/HAS Certificate. The company will acquire The HAS Certificate only if the company has obtained 3 times “A” level HAS Implementation Status.

It is highly important for companies not to name their products with something associated with Haram things or practices forbidden by Islamic precepts. Also, the package should not contain characters, symbols, and illustrations that imitate the Haram products.

2023 Updates on Halal Certification in Indonesia

According to Indonesian Law No. 6 Year 2023, halal certification is valid as long as there’s no change in the ingredient or process. All goods and services imported to, distributed, and traded in the Indonesian territory must have halal certification unless the products come from non-halal materials.

This requirement has been fully effective since October 2019. However, the implementation is progressive. The dates are specified below:

  • Food and beverages: October 17, 2019 – October 17, 2024
  • Food and beverages packaging: depending on the type of food and beverages
  • Traditional medicines and health supplements: October 17, 2021 – October 17, 2026
  • Clothing, headwear, and accessories: October 17, 2021 – October 17, 2026
  • Chemical products, cosmetic products, and genetically engineered products: October 17, 2021 – October 17, 2026
  • Risk A class medical devices: October 17, 2021 – October 17, 2026
  • Household appliances, household healthcare supplies, stationery and office equipment, Muslim prayer equipment: October 17, 2021 – October 17, 2026
  • Risk B class medical devices: October 17, 2021 – October 17, 2029
  • Over-the-counter (OTC) drugs and limited OTC drugs: October 17, 2021 – October 17, 2029
  • Risk C class medical devices: October 17, 2021 – October 17, 2034
  • Prescription drugs (except psychotropics): October 17, 2021 – October 17, 2034
  • Services relating to OTC drugs, limited OTC drugs, prescription drugs (except psychotropics), chemical products, cosmetics, and genetically engineered products: depending on the type of product
  • Biological products, drug products, and medical devices with their materials or production processes not determined as halal yet: according to related laws and regulations

Except for food and beverages, it is not allowed for businesses to submit their halal certification application before the commencement of the stated periods above.

References:

http://info.taiwantrade.com/EP/resources/member/65/news/af9ff66a-d313-4ef7-9c4d-f012f4be3483_HalalCeritificationinIndonesia-TaiwanfmMUI.pdf

http://www.n.halalmui.org/mui14/index.php/main/go_to_section/56/1362/page/1

http://e-lppommui.org/other/document.php


Due to the sensitive issue of halal and haram in this Moslem majority country, we suggest that the company seeks for expert assistance to register your products in order to get Halal Certificates. If you have any questions feel free to post your comments below, or you can directly contact us to sales@cekindo.com, and we will get  back to you soon.

Pandu Biasramadhan

Senior Consulting Manager at InCorp Indonesia

An expert for more than 10 years, Pandu Biasramadhan, has an extensive background in providing top-quality and comprehensive business solutions for enterprises in Indonesia and managing regional partnership channels across Southeast Asia.

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We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

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Frequent Asked Questions

There are two main types, namely, primary business licenses and non-primary business licenses. The primary ones commonly apply to various industries, such as general and industrial business licenses. Additional non-primary ones are included, depending on the operations of your business. Examples of non-primary business licenses are operational and commercial licenses.

Yes, you must apply for it to be able to issue work permits for your foreign employees. This permanent business license is also a prerequisite for the applications for other business licenses and import licenses.

There are three things business owners need to consider before setting up a business in Indonesia: the type of business entity, capital requirements, and regulations.

Indonesian regulations separate local companies from foreign companies. Generally, foreign-owned companies (PT PMA) have more limitations than their local counterparts (Local PT). However, to pursue more foreign direct investment in the country, the government has taken several bold initiatives to increase the ease of doing business and provide numerous attractive incentives for foreign investors.