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How to Get MUI & BPJPH Halal Certification in Indonesia
What is Halal?
The most suitable phrase to describe the 'halal' definition is "Halal is an immense value". While halal certification originally arose as an option to protect customers by using Islamic teachings as its basis, halal is no longer restricted to religious duties among Muslims. It is rising not only as a strong market trend but also as an increasingly global phenomenon for both Muslims and non-Muslims. Not only does the 'halal' mark on a food ensure that Muslims can eat it, but it has now become a worldwide emblem of quality security and eating habits.
This quality makes halal advantages not only connected to religious values, but also with the idea of dietary consistency, protection, sanitation, and non-contamination introduced in the manufacturing process, rendering the idea of halal more desirable to both Muslims and other religious adherents. In addition to the above-mentioned elements, the halal definition also involves ethical ideals of consumer culture, such as the upholding of concepts of sustainability, civic conscience, environmentalism, cultural justice, and animal rights, which enhance the popularity, desire, and request for halal-certified goods to a larger extent amongst non-Muslim citizens.
Indonesia’s New Halal Certification Process
Indonesia's new Halal Product Law ('Halal Law') took effect on October 17, 2019. Many retail goods and related services entering and selling in the country must be Halal-certified or alternatively, mark their products as "Non-Halal." Certain products and services, though, may have to comply with them until 2022.
And for those who wish to export Indonesia from abroad as well as serve their food service or goods in Indonesia, the specifications of Halal in Indonesia must be complied with. Even you can sell your products as non-halal, if you wish to reach to good business volume – like every trader or exporter would like to – it would be unwise to launch non-halal goods in such a community consisting of majorly Muslim people.
Why Halal Certification Application Process Has Changed?
Only the Indonesian Council of Ulama (MUI) had the authority to administer a halal certificate until the state approved Law No. 33 of 2014. MUI did not, however, oversee the Indonesian halal certification quite well.
It is anticipated that the inauguration of the BPJPH body will enhance the ethical conduct of the procedure, as well as the prevention of unethical activities, like corruption. According to a new plan which converting to an online and transparent mechanism with fees paid through designated banks, the process should be more effective.
Who Issues Halal Certification in Indonesia Now?
The halal certification process in Indonesia now includes two stakeholders: the MUI and the National Food and Drug Control Agency of Indonesia (BPOM). Besides, MUI has developed a separate body that protects Muslim customers from buying specific goods. For eg, foods, drugs, and cosmetics, the Food, Drug, and Cosmetics Assessment Institute (LPPOM-MUI).
The position of MUI will remain crucial in the Indonesian halal certificate process due to Law No. 33/2014. While BPJPH will predominantly act as a regulatory party with the ability to establish, remove, and administer all administrations relating to halal certification of local and imported goods.
However, a halal advisory or fatwa from the Halal Inspection Agency certifying MUI should be issued (LPH).
To sum up, the new BPJPH acts as the official halal agency of government:
- A Halal Product Assurance Implementing Board (Badan Penyelenggara Jaminan Produk Halal or 'BPJPH'), that is under the Ministry of Religious Affairs, is also mandated by the Halal Law to be set up within 3 years after 17 October 2014-14. And it was established in accordance with Presidential Decree No. 33 that became operational on Oct. 17, 2019.
- Under the control of the Ministry of Religious Affairs, BPJPH was formally established ("MORA"). Although in Indonesia, the Indonesian Ulema Council (Majelis Ulama Indonesia or 'MUI') also has the power to intervene with halal certification.
- BPJPH, which functions under the umbrella of the Ministry of Religious Affairs of Indonesia, is an Indonesian abbreviation for Halal Product Assurance Agency. The organisation has taken over all the roles formerly done by the MUI non-governmental agency and it aims to execute all Halal certification processes in one place with transparency.
- The halal certification process is carried out solely by MUI and its certification body, the MUI Health, Medicines and Cosmetics Evaluation Body (Lembaga Pengkajian Pangan Obatobatan dan Kosmetika MUI or 'LP-POM MUI') in the old replaced model.
- In the current model, BPJPH is the halal approval application authority and many other parties are involved in the process. For auditing the applicant firm, BPJPH assigns an LPH. The LPH auditing agency will report the reports to BPJPH.
- BPJPH will then apply to the MUI the findings of the audit if the product follows the halal requirement. To review the audit and decide if the product is a halal product, MUI will carry a halal edict proceeding (Sidang Fatwa Halal). If MUI demands documentation from the applicants, BPJPH may work closely with the applicant. Communication between MORA, LPH, BPJPH and MUI will take place at this point in order to determine the halal suitability of the commodity and to submit additional documentation.
- If the product is deemed as a halal product, MUI will notify BPJPH, and within 30 workdays after MUI collects the audit reports from BPJPH and BPJPH will release a halal decree on the product. Although if MUI says otherwise, MUI shall notify BPJPH that the material does not follow the criteria of halal and therefore cannot be considered halal.
The Halal Law's Scope
Under the Halal Law, the concept of 'products' In Article 1.1 of the Law on Halal, 'Products are classified as products and/or services relating to foodstuffs, beverages, Medicines, cosmetics, pesticides, biological products, genetically engineered products, goods as well as items that are eaten, used or used by the public. Items such as clothing and beverages are also can be included.
Things to Know When Applying for Halal Certificate in Indonesia
According to the BPJPH, food, and drink, cosmetics, medications, hotels, slaughterhouses, and other consumer products and facilities related to these goods would be protected by the mandatory Halal Law.
- The Halal Certificate may be requested from all producers and importers or distributors.
- They must first be Halal-certified by an agency from their own country for foreign companies who are looking to sell goods and have to get Halal certification in Indonesia. The Halal certification agency must also be licensed with the BPJPH as well.
- Your company does not have to be Muslim or consist of only Muslims. The only thing you need to be to abide by Halal laws in every step of food production.
- For your raw materials, you do not need to apply for individual Halal certificates however, they all need to comply with the halal requirements.
- The BPJPH has an active office in Jakarta and no online platform yet. We suggest you consult a local Halal certification agency in Indonesia to get details.
How to Apply for Halal Certification in Indonesia?
Your business and goods need to be licensed with the Ministry of Religious Affairs in Jakarta since the new BPJPH office is not yet able to accept applications and does not have an online platform for the application.
- Product records, applicant details, the nature and form of the goods, the product description and additives used, and the overall production procedure may also be needed for the approval process.
- The BPJH will give a special identification number until your company is registered in their system which must be put on all packages or on the item itself.
- From a list issued by the BPJPH, you need to select an LPH (Private Halal Inspection) agency. Then, to perform an inspection and/or halal food testing, BPJPH assigns the LPH. For validation, it submits the report of the examination to BPJPH.
- The related checks will be carried out by the LPH Agency for your goods or services, which would include the components found in food specimens. BPJPH may demand a further laboratory examination if there is a need to clarify suspicious content.
- Then you need to pay the relevant fees based on the scale of the company.
- The results of the LPH tests will be reported to the MUI (Food and Drug Research Institute of The Indonesian Ulema Council). After BPJPH acknowledges the findings of the laboratory examination, MUI will announce the fatwa approval (Article 32).
- BPJPH provides a halal certificate in case the goods are certified by the MUI fatwa and they will be categorized as halal.
If all reports comply with the standards, then the entire procedure will take more or less 60 days. Halal certificates that are issued by the BPJPH shall be valid for 4 years unless the content of goods changes during this time.
Application Fees for Halal Certification for Overseas Companies Who Wants to Export to Indonesian Market
- For micro companies, BPJPH does not require fees for the enrollment, checking, and granting of certificates.
- For medium and large-sized companies, the fees will vary around Rp100,000 (US$7) and Rp500,000 (US$35).
- Also, the content, amount, and complexity of the raw materials examined, research and review fees would differ from 3.5 million Rupiah (US$248) to 4 million Rupiah (US$284).
- The issuing of the certification would cost medium-sized businesses around Rp150.000 (US$10) and Rupiah 1.5 million (US$106).
- For the large companies, it will cost around 1.5 million Rupiah (US$106), and 5 million Rupiah (US$355).
Why you Should Hire Halal Certificate Consultancy?
Halal certification is a multifaceted procedure in Indonesia and seems particularly confounding to foreign companies. And you have the right to be puzzled if you are in that state of mind, so there are often reports on state practices and several measures are generated within governmental institutions.
In addition to the time and resources you bring into the process, the expense of registration and testing would add to the total cost of production of small and medium-sized businesses, particularly those in the Food and Beverages sector. That is why all businesses, but particularly SMEs, should not waste any time, money, and energy by consulting the Halal Certification Agency in Indonesia.
If you wish to have a company and need to be approved by Halal, you need to pay attention to the information. You can contact us here at any time if you are uncertain of how to get the Halal certification or if you do not yet understand if your goods or services should be Halal accredited.
Mandreel business consultancy on Halal certification comes into play right here. We will assist you every step on the application to product sample tests and certification approval regarding all different government bodies.
Why choose Mandreel for Halal Certification Consultancy in Indonesia?
- Mandreel is proud of its more than 10 years of work expertise supporting foreign customers and businesses in Indonesia regarding their business establishment, halal certification consultancy, and as well all steps regarding market entry strategy.
- We offer consultancy services for various ranges of companies from micro sizes to large enterprises and we have consultant staff dedicated to each segment to ensure their success in the market and compliance to regulations.
- We had hundreds of clients in Singapore, Malaysia, Indonesia.
- We have successfully worked with many sectors including Chemical Industry, Food, and FMCG industry.
- And most importantly, we are here to assist you in every step of the market entry procedure in Indonesia and every step of the Halal Certification procedure with our years of knowledge and experience.
- This expertise will buy you time and reduce the stress of starting a business in a foreign company or initiating an export project. Not to mention avoiding spending money on the wrong application!
For all questions in mind regarding Halal Certification in Malaysia as well as the business establishment in Indonesia, you can contact us.
You can send us an email for any questions about our services and we will get back to you as soon as possible or in one working day. For a quick reply, please give us a call or send us a Whatsapp message. Thank you.