Indonesia, home to the world’s largest Muslim population, is a nation where Islamic values strongly influence public life, including food and beverage consumption. With over 230 million Muslims (about 87% of the population), the demand for Halal-certified products is both cultural and religiously driven. To ensure that food and beverage products comply with Islamic dietary laws, the Indonesian government has implemented a structured and legal Halal certification system.
The Indonesia Food and Beverage Halal Certification is not just a religious formality—it is a mandatory legal requirement for certain categories, especially consumables. Overseen by a centralized authority, the system is built to ensure that products marketed in Indonesia meet strict Islamic standards, offering assurance to consumers and opening doors for businesses aiming to access the expanding Indonesian market.
In this detailed overview, we will explore:
- What Halal certification means
- The legal framework of Halal certification in Indonesia
- The roles of BPJPH, MUI, and related agencies
- The step-by-step process of Halal certification
- Categories and scope of products covered
- Requirements for local and international businesses
- Implications for food and beverage sectors
- Challenges and opportunities for businesses
- Future outlook and strategic considerations
What Is Halal Certification?
The term “Halal” means permissible in Arabic, referring to anything allowed under Islamic law (Sharia). In the context of food and beverages, Halal encompasses:
- Permissible ingredients (no pork, alcohol, blood, carrion, etc.)
- Permissible processing methods (slaughtering of animals must follow Islamic rites)
- Cleanliness and hygiene standards
- No cross-contamination with Haram (forbidden) substances
Halal Certification serves as a guarantee to Muslim consumers that a product has been inspected and complies with these requirements. It also assures that the entire supply chain, from raw materials to storage and logistics, follows Halal standards.
Legal Framework: Law No. 33/2014 on Halal Product Assurance (UU JPH)
The turning point in Indonesia’s Halal landscape came with the enactment of Law No. 33 of 2014, titled the Halal Product Assurance Law (Undang-Undang Jaminan Produk Halal / UU JPH).
Key Provisions of the Law:
- Halal Certification Is Mandatory: All products that enter, circulate, and are traded in Indonesia must be certified Halal unless stated otherwise.
- BPJPH as the Certifying Authority: The law established a new body to oversee Halal certification—BPJPH (Badan Penyelenggara Jaminan Produk Halal) or the Halal Product Assurance Organizing Agency.
- Halal Certification Transition Period: Mandatory certification began in October 2019, with a staggered implementation schedule up to 2029 depending on product type.
- Penalties for Non-Compliance: Companies failing to comply may face administrative sanctions, including product withdrawal, fines, or business license revocation.
Key Agencies Involved
1. BPJPH (Halal Product Assurance Organizing Agency)
- Under the Ministry of Religious Affairs
- Manages and issues Halal certificates
- Registers Halal auditors and institutions
- Coordinates with Halal Examination Bodies (LPH)
2. LPH (Lembaga Pemeriksa Halal / Halal Inspection Body)
- Conducts audits and inspections of products, processes, and facilities
- Must be accredited by BPJPH and consist of trained Halal auditors
- May be public (universities, government labs) or private
3. MUI (Majelis Ulama Indonesia)
- The Indonesian Ulama Council
- Historically managed Halal certification before BPJPH
- Still plays a central role by issuing the Fatwa (religious ruling) to confirm the product’s Halal status after inspection
- MUI’s role has shifted to theological approval, while administrative control now rests with BPJPH
What Products Must Be Certified Halal?
The Halal certification requirement applies to a wide range of products:
Mandatory Certification Categories (as per government implementation roadmap):
- Food and beverages (processed and unprocessed)
- Food additives and ingredients
- Slaughtered meat and poultry
- Processed meats
- Beverages including milk, coffee, tea, juice, etc.
- Catering and restaurant services
- Imported food and drinks sold in Indonesia
Eventually, the scope will expand to:
- Cosmetics and personal care
- Pharmaceuticals
- Chemicals and cleaning agents
- Textiles and leather goods
The Halal Certification Process in Indonesia (Step-by-Step)
1. Business Registration
- Businesses must register with BPJPH
- Required documentation includes company registration, business license (NIB), product list, and production process flow
2. Appointing an Internal Halal Supervisor
- The business must designate a Halal Assurance System (HAS) Supervisor
- This person is responsible for ensuring ongoing compliance and documentation
3. Choosing an LPH (Halal Inspection Body)
- The business selects a registered LPH accredited by BPJPH to conduct the inspection
- The LPH reviews ingredients, production processes, storage, packaging, and supply chain
4. Halal Audit and Inspection
- The audit covers raw materials, factory hygiene, equipment, cross-contamination controls, and traceability systems
- Halal slaughtering (if applicable) is also inspected
5. Fatwa Issuance by MUI
- The inspection results are submitted to MUI
- MUI convenes a Fatwa Commission to issue a religious ruling on the Halal status of the product
6. Certificate Issuance by BPJPH
- After MUI’s fatwa, BPJPH issues a Halal certificate valid for four years
- Businesses are subject to routine checks and must maintain their Halal Assurance System
For Foreign and Imported Products
Companies exporting food and beverages to Indonesia must:
- Comply with Indonesian Halal standards
- Appoint a local representative or importer who can submit the certification application
- Use a Halal certification body recognized by BPJPH
Indonesia maintains mutual recognition agreements (MRAs) with various countries’ Halal certification authorities. Examples include:
- JAKIM (Malaysia)
- MUIS (Singapore)
- ESMA (UAE)
- HCAA (Australia)
But exporters must ensure that:
- The certification body in their country is recognized by BPJPH
- Documentation is translated into Bahasa Indonesia
- Labeling must also reflect Halal certification clearly
Halal Logo and Labeling Requirements
Once certified, businesses must:
- Display the official Indonesian Halal logo
- Use the Bahasa Indonesia Halal term on packaging
- Ensure the Halal label is visible and cannot be misleading
BPJPH has introduced a new national Halal logo as of 2022, replacing the older MUI-based logo.
Halal Certification Costs
Costs depend on factors such as:
- Number of products
- Size and complexity of the business
- LPH fees
- Administrative fees
Typical range: IDR 5 million to 20 million (~USD 300–1,300) for SMEs. Larger corporations may incur higher costs due to complex processes.
Exemptions and Voluntary Certification
- Non-Halal products must be labeled accordingly (e.g., contains pork/alcohol)
- Products that do not fall within Halal-relevant categories may be exempt
- Some products can be voluntarily certified to build consumer trust
Strategic Benefits of Halal Certification
- Market Access: Halal certification is often a market entry requirement in Indonesia.
- Consumer Trust: Builds loyalty with Muslim consumers seeking ethical, clean, and religiously compliant products.
- Export Potential: Opens access to other Muslim-majority markets (e.g., Malaysia, Middle East).
- Competitive Advantage: Signals quality, hygiene, and integrity—appealing even to non-Muslims.
- Sustainability and Safety: Halal systems emphasize traceability, cleanliness, and accountability.
Challenges for Businesses
- Complex Bureaucracy: Navigating multiple agencies and approval stages can be time-consuming.
- Ingredient Traceability: Verifying each input and sub-ingredient can be difficult, especially for imported items.
- Cost for SMEs: Initial audit and compliance setup can be financially burdensome.
- Evolving Regulations: Halal certification laws are evolving, requiring constant compliance monitoring.
- Language Barriers: For international businesses, documentation must be translated and adapted to Indonesian regulations.
Halal Certification for Restaurants and Food Services
Restaurants, cafés, and catering services must:
- Ensure Halal sourcing of all ingredients
- Prevent cross-contamination in kitchens (e.g., separate utensils)
- Train staff in Halal procedures
- Display Halal certificate and logo visibly
Street vendors and micro-enterprises are being gradually brought into the system with simplified procedures under the Self-declared Halal Certification Scheme for MSMEs, launched by the Indonesian government in 2023.
Digitalization and the Halal Information System
To streamline processes, BPJPH has introduced the SIHALAL system, a digital platform where businesses can:
- Submit certification applications
- Track status
- Access resources
- Communicate with LPH and MUI
This e-system is intended to reduce paperwork, shorten processing times, and improve transparency.
Future Outlook
By 2029, Indonesia aims to fully implement mandatory Halal certification for:
- All food and beverage products
- Pharmaceuticals and cosmetics
- Chemicals, biological products, and GMOs
- Consumer goods and services
Indonesia is positioning itself as a global Halal hub, and Halal certification will increasingly influence trade policy, investment, and food technology. The government’s efforts align with global Halal market trends, which are estimated to reach over USD 3 trillion by 2030.
Conclusion
The Indonesia Food and Beverage Halal Certification is more than a religious procedure—it’s a legal obligation, a trust-building mechanism, and a strategic asset in the food and beverage industry. Both domestic and international companies must navigate a structured process involving BPJPH, LPHs, and MUI to ensure their products meet Halal standards.
With the growing influence of Halal markets and Indonesia’s expanding consumer base, certification offers businesses a pathway to compliance, market access, and sustainable growth. While there are hurdles in terms of costs, bureaucracy, and compliance, the long-term benefits far outweigh the initial challenges—especially in a market where consumer trust and religious adherence are central to purchasing decisions.
For any business aiming to succeed in Indonesia’s food and beverage sector, Halal certification is not optional—it’s essential.
If you’d like a breakdown of the process for a specific business type (like a coffee shop, ice cream brand, or restaurant chain), we can provide a tailored step-by-step guide as well.
