Halal Indonesia: Certification, Regulation, and Market Insights for Businesses

In Indonesia, halal encompasses not only dietary laws but also cosmetics, pharmaceuticals, clothing, services, and logistics. The Indonesian government has created a strong system to ensure that products are halal.  

This includes official rules, a transparent halal Indonesia logo, and strict audits. Adhering to these regulations is essential for businesses wanting to sell in Indonesia and fosters consumer trust. 

Halal Regulation in Indonesia 

Indonesia has updated its halal regulations to ensure all products comply with Islamic standards. As of October 18, 2024, halal certification has been required for various types of products. 

Law No. 33 of 2014 

This law makes halal certification mandatory and establishes the BPJPH, the agency responsible for managing it. The law outlines what constitutes halal, the process for obtaining certification, and the penalties for violating the rules. 

Government Regulation No. 42 of 2024 

This rule replaces an older one and outlines how the law operates. It explains the roles of different agencies, the cost of certification, and the requirements for certifying various products. The rule confirms that mandatory certification started on October 18, 2024. 

Ministerial Regulation No. 26 of 2019 

This rule outlines the process for businesses to apply for or renew a halal certificate. It also outlines the requirements for using halal labels and the process for approving inspection agencies. 

Ministerial Decree No. 982 of 2019 

This decree gave guidance during the transition period before certification became mandatory. It described the roles of BPJPH, MUI, and LPPOM MUI in the process. 

Deadlines for Compliance 

Most products must be certified as of October 18, 2024. Small businesses have until October 17, 2026, to apply. The deadline for imported products will be set before the end of 2026. 

READ MORE:

• Investing Potential in Indonesia’s Halal Economy
• The Halal Industry in Indonesia: Trends and Future Prospects
• Halal Certification Procedure in Indonesia: A 2025 Update

Why Indonesians are Strict About Halal Products 

Halal products are more than just a preference in Indonesia—they are a serious matter of religious and cultural importance. With over 230 million Muslims, Indonesia has one of the world’s largest Muslim populations. This means halal compliance is deeply connected to trust, health, and daily life. 

Many Indonesians check for the Halal Indonesia logo or label before buying products. They want to ensure that the food, cosmetics, or medicines they use comply with Islamic rules. If a product is not marked as halal, most people will avoid it. 

Additionally, there is a growing awareness of halal standards, particularly among younger and more educated consumers. They view halal as a symbol of cleanliness, quality, and safety, not just a matter of religious approval. This means that halal certification is not optional for businesses. It’s essential for gaining customer trust and staying competitive in the Indonesian market. 

Requirements for Halal Certification in Indonesia 

In Indonesia, two central bodies manage the halal certification process, the Food, Drug, and Cosmetics Assessment Agency (LPPOM) and the MUI Fatwa Committee. These institutions collaborate to ensure that all certified products comply with Islamic halal standards. To receive certification, businesses must go through several key steps: 

• Material and Equipment Check: All ingredients and equipment used in production must meet halal standards. LPPOM reviews these components to ensure they comply with the relevant standards. 
• Halal Review Process: Once the materials are approved, the MUI Fatwa Committee reviews the findings and decides whether the product can be officially declared halal. 
• Certification Approval: If approved, the product is granted halal certification and can display the official Halal Indonesia logo. 
• Strict Legal Enforcement: Indonesia enforces the Halal Product Protection Bill, which imposes strict penalties on those who violate halal laws. These include prison sentences and heavy fines for non-compliance. 

Benefits of Halal Certification for Businesses in Indonesia 

Halal certification offers key advantages for businesses in Indonesia’s growing halal market. 

Market Access 

Halal certification is required by law for many products. Without it, businesses may face restrictions or penalties that limit their ability to operate. 

Consumer Trust 

Products bearing the Halal Indonesia logo gain stronger trust from Muslim consumers, who view the label as a symbol of safety and religious compliance. Building trust can foster long-term customer loyalty and create a positive brand perception. 

Competitive Advantage 

Certified products stand out in the food, cosmetics, and health industries, helping businesses compete more effectively. They also show a commitment to quality and adherence to religious values. 

Sales Growth 

Halal-certified items appeal to a broader customer base, resulting in increased demand and improved sales performance. It also allows companies to target niche halal-conscious consumer segments. 

Export Potential 

Indonesia’s halal certification is recognized in other Muslim-majority countries, opening doors to regional and international markets. This makes certification a valuable asset for businesses looking to scale globally. 

Register and Certify Your Product with InCorp 

Halal certification is no longer optional in Indonesia—it’s a legal and strategic requirement. With a large and growing Muslim consumer base, businesses that meet Indonesia’s halal requirements can establish trust, increase sales, and gain access to both local and international markets. 

Ready to register or certify your product? Let InCorp Indonesia (an Ascentium Company) handle the process for you with: 

• Product Registration: Ensure your products comply with local regulations before entering the Indonesian market. 
• Halal Certification: Get professional support to obtain your official halal certificate in Indonesia. 

Fill out the form below to start your halal journey and unlock the full potential of Indonesia’s thriving consumer market.