Indonesia, home to more than 230 million Muslims, represents one of the largest halal markets in the world. In recent years, the government has placed greater emphasis on ensuring that all products circulating in the country comply with halal certification law Indonesia.
The halal certification law Indonesia mandates that products entering, circulating, and being traded in Indonesia must be halal-certified unless explicitly stated otherwise.
For businesses, this means halal compliance is no longer optional, it is a legal requirement.
Legal Basis of Halal Certification Law Indonesia
Understanding the halal certification law Indonesia is therefore essential for any business operating within the country, whether domestic or foreign.
Compliance not only ensures legal conformity but also enhances market credibility, consumer trust, and long-term business sustainability in a rapidly expanding halal industry.
Meanwhile, the cornerstone of Indonesia’s halal regulation is Law No. 33 of 2014 on Halal Product Assurance (Undang-Undang Jaminan Produk Halal / UU JPH).
This law formally introduced the mandatory halal certification system and laid out the institutional framework governing its implementation.
Under this law, all products that are produced, distributed, and traded in Indonesia, particularly those consumed or used by Muslims, must be halal-certified.
This includes food, beverages, drugs, cosmetics, chemical products, biological products, and consumer goods that are worn, used, or utilized by the public.
The Halal Product Assurance Act (UU JPH) was further strengthened through implementing regulations, notably:
- Government Regulation No. 31 of 2019 which details the implementation procedures for halal certification
- Government Regulation No. 39 of 2021 concerns the implementation of the Halal Product Assurance System
- Minister of Religious Affairs Decree No. 748 of 2021 which outlines operational standards for certification and inspection
These combined regulations serve as the cornerstone of Indonesia’s halal certification system, guiding authorities, processes, and enforcement to maintain national standards.
The Role of BPJPH, MUI, and LPH in Halal Certification
The halal certification process in Indonesia involves three main institutions, each playing a unique yet interconnected role within the halal assurance system. They are:
- BPJPH , The Central Administrative Authority
The Badan Penyelenggara Jaminan Produk Halal (BPJPH) operates under the Ministry of Religious Affairs and is the primary body responsible for managing and issuing halal certifications.
Established by Law No. 33 of 2014, BPJPH’s main functions include:
- Registering halal certification applications
- Accrediting Halal Inspection Bodies (LPH)
- Coordinating with MUI on fatwa issuance
- Issuing halal certificates after MUI approval
- Overseeing post-certification monitoring and enforcement
BPJPH effectively manages the administrative and procedural aspects of halal certification while ensuring that each step aligns with legal and religious requirements.
- MUI, The Religious Authority
While BPJPH handles administration, MUI (Majelis Ulama Indonesia) serves as the ultimate religious authority in determining a product’s halal status.
After inspection and testing are conducted by the LPH, the results are forwarded to MUI’s Fatwa Commission which convenes a Halal Fatwa Session to review the findings.
If the product meets all halal criteria under Islamic law (sharia), MUI issues an official halal fatwa, a religious decree affirming that the product is permissible for Muslim consumption or use.
Only after this fatwa is granted can BPJPH issue the halal certificate.
- LPH, The Technical Inspector
The Lembaga Pemeriksa Halal (LPH) functions as an accredited Halal Inspection Body, responsible for conducting on-site audits and laboratory analyses.
LPH institutions must meet strict accreditation standards set by BPJPH and MUI, ensuring credibility and competence in examining production facilities, ingredients, and supply chains.
Key Regulations Under the Halal Product Assurance Act
The Halal Product Assurance Act and its implementing rules outline several key provisions that businesses must understand when complying with the halal certification law Indonesia:
- Mandatory Halal Certification
Starting from October 2019, halal certification became mandatory for food and beverage products, with gradual implementation phases extending to cosmetics, pharmaceuticals, and consumer goods.
By 2025, most food and beverage products are required to have halal certification and further phases will apply to other product categories by 2026 and beyond.
Failure to comply may result in administrative sanctions, including warnings, product recalls, or revocation of business licenses.
- Validity and Renewal
Halal certificate law Indonesia is typically valid for four years, provided there are no changes in raw materials, suppliers, or production processes. Your must apply for renewal before the certificate’s expiration to maintain uninterrupted compliance.
- Halal Labeling
Products that have been granted halal certification must display the official Halal Logo issued by BPJPH. This logo is standardized across all industries and serves as the only legally recognized mark for halal-certified products in Indonesia. Any misuse or falsification of the logo can result in legal penalties.
- Recognition of Foreign Halal Certificates
Indonesia recognizes foreign halal certificates only if the issuing foreign body has been accredited by BPJPH and acknowledged by MUI. This ensures that imported goods comply with the same stringent halal standards applied domestically.
- Role of Halal Auditors
Halal auditors must meet qualifications approved by BPJPH and MUI. They are tasked with ensuring that every stage of production, from ingredient sourcing to packaging, meets halal compliance standards.
Benefits of Compliance with the Halal Certification Law
Complying with the halal certification law Indonesia offers several strategic advantages beyond regulatory fulfillment, including:
- Market Access and Competitive Edge
Indonesia’s Muslim-majority population makes halal certification a key determinant of consumer preference. Certified products gain access to a massive domestic market and can tap into lucrative export opportunities across Southeast Asia, the Middle East, and other Muslim-majority regions.
- Strengthened Consumer Trust
Halal certification builds brand reputation and consumer confidence. With increased awareness and government enforcement, Indonesian consumers are becoming more selective, favoring brands that demonstrate transparency and compliance.
- Legal Protection
Compliance ensures businesses avoid administrative sanctions, product recalls, or reputational damage arising from non-compliance. It also provides a legal safeguard when dealing with regulatory inspections or disputes.
- Sustainability and Quality Assurance
The halal certification process requires strict quality control, hygiene, and traceability standards. These are factors that ultimately improve overall product quality and operational efficiency.
- International Recognition
With Indonesia’s halal certification system gaining global credibility, companies holding valid halal certificates from BPJPH and MUI can leverage this recognition in international trade, especially as global halal standards continue to harmonize.
Ensuring Compliance and Building Consumer Trust Through Halal Certification
The Halal Certification Law of Indonesia marks a significant milestone in the nation’s regulatory landscape.
It guarantees that all products consumed and used by the public adhere to Islamic principles while strengthening Indonesia’s position in the global halal industry.
For businesses, complying with the Halal Product Assurance Act (UU JPH) is more than just meeting a legal requirement.
It’s also a strategic investment in brand credibility, consumer confidence, and sustainable market growth.
However, the certification process can be complex and time-intensive, involving coordination among BPJPH, MUI, and LPH authorities.
That’s where expert guidance like our team at Watershore becomes invaluable. Watershore offers comprehensive, end-to-end assistance for companies seeking halal certification in Indonesia.
From identifying the appropriate licenses to preparing and submitting documentation, our expertise ensures a seamless, compliant, and efficient process.
With our expertise, you can navigate intricate regulatory procedures effortlessly, saving valuable time and resources while staying focused on your business growth.
Contact Watershore to simplify your halal certification journey and ensure full compliance with Indonesia’s latest halal standards.
Source:
https://halalmui. org/en/mandatory-halal-certification-2025-a-complete-quick-guide/
https://www.aseanbriefing. com/doing-business-guide/indonesia/company-establishment/halal-certification-guide
Image source:
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