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Halal Certification in Indonesia

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Halal industry in Indonesia has been seen as a gold mine for many investors.

We are not trying to exaggerate things, amounting to 14 percent of the total Muslim population in the world is in Indonesia.  Among the 250 million people in Indonesia, approximately 88 percent of them are Muslims. As of 2017, 1.8 billion Muslims have taken over 24 percent of the global population; the fastest growing population of the major religion.

Neighbouring Islamic countries such as Malaysia and Brunei put a lot of emphases and focus on the Halal industry. Indonesia, however, has not yet created a mature set of Halal regulations. The following guidance will give you a solid idea of its current standards and processes.

What is Halal and Halal Certificate?

halal iconPeople often ask how to define “halal” — literally, it means “permissible” — while the answer could be either simple or a little complicated, here is the basic concept of halal: consumer goods such as food, drugs and cosmetics that do not contain any Haram ingredients. Haram is the opposite of halal; everything that contains pork, animal blood, and dead and poisonous animals. Even more, slaughtering non-haram animals without Islamic-Law compliance is haram.

A halal certificate is a declaration to proves that halal products are in accordance with the Islamic Sharia laws. For businesses to label their products as halal, halal certification is mandatory — for Muslims to judge if certain products are permissible to consume or use.

 

Indonesian Halal Certification Issuing Authority

The highest authority to certify and issue a halal certificate in Indonesia is held by the National Body of Halal Assurance (BPJPH). The inauguration happened in October 2017 and works in coordination with Indonesian Ulama Council (MUI). MUI is one of the highest authorities on Indonesian Islamic affairs; in charge of setting up the halal compliance standard and issuing the Halal fatwa. Under the MUI, the two major authorities, namely The Food, Drug and Cosmetics Assessment Agency (LPPOM), and MUI Fatwa Committee, are responsible for halal assessment, audit and declaration.

Obtain Halal Certification in Indonesia: The Process

Though up until recently, acquiring halal certification was of a voluntary initiative, this has changed. Now it is more important to understand the registration process in this biggest halal market than ever before.Both existing businesses and investors who would like to sell or distribute products in Indonesia must know that all non-registered halal products will be categorized as non-halal in 2019.

While requiring paperwork and approvals through these regulations and process might seem burdensome, the general LPPOM-MUI procedure can be smoothed with Cekindo’s registration guidance:

STEP 1: Fulfill MS23000 halal requirements with materials, product and production process, and implement Halal Assurance System (HAS).

STEP 2: Prepare all required documents for halal certificate application. Submit the documents to Cekindo, along with the registration fee and halal certification contract fee.

STEP 3: Fill out documents, in accordance with certification status, as required by LLPOM MUI during the registration process. Submit the documents to Cekindo for LLPOM MUI to process.

STEP 4: Guidance is provided for pre-audit assessment, audit, post audit, and lab analysis to ensure compliance.

STEP 5: Product meets HAS requirements and passes LLPOM MUI lab analysis. MUI issues the certificate.

Halal-Certification-Indonesia-Process

 

Important Notes on Halal Standard in Indonesia

Due to the diverse halal standards across the world, the halal standard based on MUI’s Fatwa Indonesia is Sharia Law. There are some specific details that companies need to pay attention to:

  1. In accordance with Sharia Law, a company cannot associates their brand/product name or insinuate with anything haram.
  2. MUI prohibit packaging, design, and nature of a product (i.e. sensory characteristics) that imitate anything haram.

Foreign Halal Certificate

Article 47 of the Halal Law shows that halal-certified products and materials that come from overseas will only have to be registered at BPJPH and later sold and distributed in Indonesia as without any change in their halal registration status.

However, not all foreign certificates will be allowed to go through this convenient process and those certification institutions that are not on the list will have to be assessed by BPJPH.

To reiterate, all non-registered halal products that are sold or distributed in Indonesia will be considered as non-halal from 2019. A huge number of products has not been registered yet and delays in a process are expected.

If you need further assistance regarding Halal certificate registration in Indonesia, simply fill in the form below.
We would be happy to provide professional advice and support so that all your products can obtain Halal certificates as soon as possible.

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    Selected Testimonials

    • logo-PT-Asia-Victory

      Prior to choosing Cekindo as our business partner in Indonesia, we interviewed and compared several companies. Finally, we chose to cooperate with Cekindo because of its professionalism and quality. Cekindo has assisted us in many ways, from company certification application to KITAS application and financial statement compliance to the fulfillment of other tax obligations in Indonesia. We appreciate the team’s fast response and professionalism in preparing the financial statements, among others.

      Doris Chen
      PT. Asia Victory and PT. Bigger One
    • logo Toaster

      When I joined Toaster, it was already working with Cekindo. But it’s quick to see why Toaster chose Cekindo. Cekindo has been very helpful throughout. Toaster Headquarters is based in London. Indonesian tax laws are not our specialty. Cekindo’s team has helped us to understand Indonesian tax. They are very knowledgeable and dependable, and therefore a huge asset to our company.

      Tsui-Sie Wong
      Toaster
    • logo Ohmnia

      As a new business in Indonesia, we started consulting with multiple law firms but quickly narrowed down to only Cekindo. Cekindo was recommended as one of the top firms by multiple sources in the business community. The staff at Cekindo was very responsive to our needs as a new business. The team provided consultancy and assisted our startup firm with initial business setup, licenses and permits, HR/recruitment and market research. One year since our establishment, we still consider Cekindo as our partner.

      PT Ohmnia Tenaga Surya
    • Jan Pilar - Hydropol

      When we intended to enter the Indonesian market back in 2013/14, Cekindo helped us to understand the possibilites and options for business presence in Indonesia through legal advice & also advisory on how to arrange for ownership. Furthermore, Cekindo also provides us with a range of fully professional and reliable accounting & tax services for our representative office in Indonesia. In the world of digital & virtual economy like today, it is an essential prerequisite to have the most reliable business partner like Cekindo.

      Jan Pilař
      Hydropol
    • Sagar Datar - Bristlecone

      A huge gratitude to Cekindo, particularly its visa team, for handling our visa cases. During our visa applications, Cekindo was extremely helpful not only in facilitating all of our visa requirements but also in clarifying our queries/doubts. I would like to take this opportunity to acknowledge and appreciate the good work of Cekindo’s visa team.

      Sagar Datar
      Bristlecone

    Frequently Asked Questions

    Is it mandatory to have Halal Certificate Indonesia?

    How long will the Halal certification take?

    What kinds of products can be certified halal in Indonesia?

    How long is a Halal Certificate Indonesia valid?

    How to get the permission to put a halal logo on my product?

    What are the requirements of Halal Assurance System?