- Indonesia’s Halal Law requires many consumer products and related services in the country to be Halal-certified from October 17, 2019.
- Businesses that need Halal certification must now go to the newly established Halal Products Certification Agency (BPJPH).
- It is worth noting that, according to the BPJPH, the compulsory Halal labelling law will initially apply to food and beverages before cosmetics, drugs, and other consumer goods, and services related to these goods, which will have until 2022 to comply.
What are the criteria for Halal certification?
The key provisions in Reg 31,2019 include:
- The types of products that can be imported, traded, and distributed in Indonesia that requires Halal certification (food, beverages, chemicals, biological products, drugs, cosmetics, and utilized goods that contain traces of animal elements, such as garments);
- The registration of Halal auditors (individuals that can inspect whether a product is Halal; an LPH must have at least three auditors to conduct their testing);
- Non-Halal products must be stated clearly on the packaging with the annotation ‘Not Halal’;
- Businesses will need to be good manufacturing practice (GMP) and Halal GMP certified;
- The types of services that must be Halal-certified (packaging services, animal slaughterhouses, storage services, distribution services); and
- The registration process of international Halal certification bodies (foreign Halal agencies (FHA).
How to get Halal-certified
Businesses that need Halal certification need to do the following:
- Businesses that have yet to get their products or services Halal-certified must register their company and products at the Ministry of Religious Affairs in Jakarta (the current BPJPH office is still not ready to receive applicants and their online portal is not yet developed);
- Once applicants are registered, the BPJPH will issue a special registration number, which must be placed on all packaging or on the product itself;
- The applicant will then choose an LPH agency from a list provided by the BPJPH;
- Pay the fees (these vary depending on the size of the business);
- The LPH agency will conduct the relevant tests on the applicants’ products or services, which includes ingredients contained in food samples; and
- The results of the testing from the LPH will be presented to the MUI, who will issue a verdict on whether the product or service is classified as Halal.
How much are the Fees?
Businesses will have to wait for implementing regulations from the Ministry of Finance regarding the payment of fees, which the BPJPH says will be dependent on the applicants’ type of products or services, and the type of business. However, the following terms have been defined:
- For micro-businesses, the BPJPH will propose to implement no fees from registration to testing to the issuance of the certificate;
- For medium and large-sized enterprises, the registration fees will range between 100 thousand Rupiah (US$7) and 500 thousand Rupiah (US$35);
- Testing and examination fees will range between 3.5 million Rupiah (US$248) and 4 million Rupiah (US$284), depending on the complexity of the raw materials tested; and
- The certificate issuance will cost medium-sized companies between 150 thousand Rupiah (US$10) and 1.5 million Rupiah (US$106) and between 1.5 million Rupiah (US$106) and 5 million Rupiah (US$355) for large enterprises.
What are the requirements for foreign companies?
For foreign companies looking to export products that require Halal certification into Indonesia, they first must be Halal-certified by an agency from their own country, and that agency must already be registered with the BPJPH. The full list of international partners is forthcoming; however, the following terms have been defined:
- If the agency is recognized by the BPJPH, foreign businesses can then register with the BPJPH with a list and detailed description of their products along with the Halal certification from the local FHA partner;
- The BPJPH will then issue a registration number that must be placed on all packaging; and
- The product is then ready to be exported to Indonesia
What are the requirements for Foreign Halal Certification Agencies?
FHAs are any Islamic body that is recognised by their country of origin as the agency that can issue Halal certification. The BPJPH aims to establish cooperation with FHAs so as to ease the process for foreign companies looking to export their products or services into Indonesia.
As stipulated in Reg 31, 2019, FHAs will first need to register with the BPJPH and provide the following evidence:
- Profile of the FHA, with details of its governing body, directors, address, and contact details;
- Proof of Halal production process;
- A copy of the Halal certificate FHAs issue in their country of origin (the regulation states that this needs to be ratified by the Indonesian embassy of the home country);
- Proof of accreditations such as ISO/SMIIC;
- Evidence of running an accredited laboratory used for Halal testing; and
- List and description of the goods being imported into Indonesia.
Source : https://www.aseanbriefing.com/news/2019/10/25/indonesias-halal-law-takes-effect-impacting-products-services.html