On October 17, 2019, Indonesia passed the Halal Product Law (“Halal Law”). The law regulates and now makes it mandatory that consumer products and even related services that enter and are traded in the country must be Halal certified. The types of products that this law will affect are food, beverages, chemicals, biological products, drugs, cosmetics, and utilized goods that contain traces of animal elements.
The Global Halal Market:
The Global Islamic Economy Report 2018/2019, stated that Indonesian Muslims spent over US$218 billion across various Islamic economic sectors such as travel, finance, pharmaceuticals and cosmetics, and fashion, making the country a potential to become a global Halal market hub.
Indonesia’s Halal Criteria:
According to Reg 31,2019 the key provisions include:
- The types of products that can be imported, traded, and distributed in Indonesia that requires Halal certification
- The types of services that must be Halal-certified (packaging services, animal slaughterhouses, storage services, distribution services)
- The registration of Halal auditors (individuals that can inspect whether a product is Halal
- Packaging requirements– 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 registration process of international Halal certification bodies (foreign Halal agencies (FHA).
Requirements for Foreign Companies:
Foreign companies looking to export their products into Indonesia must first be Halal-certified by an agency from their own country, and that agency must already be registered with the Product Halal Assurance Organizing Agency (BPJPH). The list of FHA partners registered with the BPJPH is still forthcoming.
The BPJPH has, however, released and defined the following terms for Foreign companies:
- Registration-Foreign businesses can register with the BPJPH a list and detailed description of their products along with the Halal certification from the local FHA partner;
- Registration number – The BPJPH will then issue a registration number that must be placed on all packaging