The Simplicity of Halal Product Licensing in Indonesia

“In the attempt to set the provision about Halal Products licensing more clearly, Government stipulates Regulation of Government No. 39 of 2021 on the Implementation of Halal Product Guarantee (“PP 39/2021”), as the implementing regulation of Job Creation Law that specify about the provision about Halal Product in Indonesia.”

Indonesia is the largest Muslim country in the world. A Muslim is obligated to consume halal products. Accordingly, foods, products, or related services traded in Indonesia must fulfill Halal products regulation in Indonesia. By the promulgation of Law No. 11 of 2020 on Job Creation (“Job Creation Law”), Indonesia has set the regulation to become more straightforward for the business sector, particularly for business actors who want to obtain halal certification.

In the attempt to set the provision about Halal Products licensing more clearly, Government stipulates Regulation of Government No. 39 of 2021 on the Implementation of Halal Product Guarantee (“PP 39/2021”), as the implementing regulation of Job Creation Law that specify about the provision about Halal Product in Indonesia.

This article will explain more about the provision of halal products based on Job Creation Law and PP 39/2021.

Halal Product Guarantee in General

The government is responsible for implementing Halal Product Guarantee in Indonesia, especially since most of Indonesia’s population is Muslim.

Halal product guarantee is meant to give legal certainty for the halalness of a product that is proved by halal certification, which signifies that the products in question are produced from halal material and have been subject to halal product processing (Proses Produk Halal/” PPH”). 

Therefore, every business actor that claimed their product is halal to be consumed by Muslims must obtain Halal Certification from the Halal Product Guarantee Agency (Badan Penyelenggara Jaminan Produk Halal/” BPJPH”).

A specific industry has to obtain halal certification, which produces goods and/or services related to food, drink, medicine, cosmetics, chemical product, biological product, genetically modified products, and used goods consumed and utilized by the public.

However, not every product is subject to this provision, products made from haram material excluded from the halal certificate’s obligation. With that, Haram products must provide information that the product is not halal so that the consumer will be aware of it.

The Requirements of Halal Certification

Refer to Article 49 PP 39/2021; business actors must fulfill the following requirements to apply for halal certification below:

  1. Any required information must be provided in a correct, clear, and honest manner;
  2. Separate locations, places, and means of slaughter, processing, storage, packaging, distribution, sale, and service must be employed for halal and non-halal products;
  3. The product’s company must appoint a halal supervisor in the company; and
  4. Any changes that are made to the relevant material compositions must be reported to the BPJPH.

The Procedure to obtain Halal Certification in General

The-Simplicity-of-Halal-Product-Licensing-in-Indonesia

As has been stipulated in article 59 PP 39/2021, business actors submit the written application of halal certification in Bahasa to BPJPH through an electronic system. Here is the procedure to obtain Halal Certification below:

The Sanction for violation of Halal Certification

After obtaining Halal Certification, business actors must obey particular provision, includes:

  1. Include Halal Label for a product that already receive Halal Certification;
  2. Maintain the halalness of a product;
  3. Separate locations, places, and means of slaughter, processing, storage, packaging, distribution, sale, and service must be employed for the halal and non-halal product;
  4. Renewing Halal Certification if the period is over;
  5. Report to BPJPH if there is a change in the material composition of the product.

For business actors that violate the provision above are subject to sanctions. PP 39/2021 stipulates that sanction for violation of Halal Certification in the form of a written warning, administrative fine in the amount of IDR 2 billion, revocation of the halal certificate, and withdrawal of goods from circulation.

Read more: An Update On Payment System Regulation In Indonesia

Author: Salsabila Hanisa

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