Unlocking Indonesia: A strategic guide to halal certification for importers

For businesses looking to enter the Indonesian market, understanding the local regulatory landscape is crucial. With a Muslim population of over 242.7 million¹, Indonesia is not only the world's largest Muslim-majority country but also a market where cultural and religious values significantly shape consumer behavior. Halal certification is the key that unlocks this immense market, and compliance is a non-negotiable step for both local and foreign businesses aiming for long-term success.

To succeed, businesses must first understand the fundamental principles and legal framework behind halal certification. This guide will walk you through what halal certification entails, its crucial benefits, and the detailed process you'll need to follow to achieve compliance.

1. What is halal certification?

Halal certification is the official verification that products and services adhere to Islamic dietary and lifestyle laws. Rooted in the principles of Sharia law, the term "halal" translates to "permissible" or "lawful." In Indonesia, this certification is not just a consumer preference but a legal requirement for a wide array of products and services, making it a critical gateway to the market.

2. Benefits of halal certification

For consumers

For consumers, halal certification offers peace of mind and builds immense trust. It provides an assurance of religious and dietary compliance, guaranteeing that the products they consume align with their faith. This transparency is crucial in purchasing decisions, as it removes any doubt about a product’s integrity.

The presence of a halal logo on a product signifies a commitment to quality and ethical standards, fostering a deep sense of confidence that encourages repeat purchases and brand loyalty.

For businesses

For businesses, halal certification provides a significant competitive edge in Indonesia’s vast domestic market and across the global Muslim community. It acts as a passport for market access, as many product categories cannot be legally sold in the country without it.

Beyond legal compliance, it dramatically improves brand credibility, signaling to consumers that your business respects their values. This enhanced reputation can lead to increased market share and stronger customer loyalty in one of the world's most lucrative consumer markets.

3. Key principles of halal certification

The process of obtaining halal certification is built on a set of core principles that demand a comprehensive approach. It’s not simply about the final product, but about every step of the journey, from raw ingredients to final packaging.

• Holistic approach: Halal certification takes a holistic approach that scrutinizes every aspect of a product’s lifecycle. This includes the sourcing of ingredients, the processing methods, the manufacturing environment, and even the logistics of storage and transportation. Every detail must adhere to halal standards to ensure the final product is compliant.
• Strict prohibition of haram (forbidden) substances: This is the cornerstone of halal law. Certification requires the absolute absence of forbidden substances, such as pork, its byproducts, alcohol and its derivatives, blood, and meat from animals that weren’t slaughtered according to Islamic law. This prohibition extends to even the smallest traces of these substances.
• Importance of cross-contamination control: A clean production environment is crucial. Halal certification requires meticulous cross-contamination control to ensure halal products don’t come into contact with haram substances. This involves strict segregation of production lines, storage areas, and equipment to maintain the integrity of the halal status throughout the entire manufacturing process.

Components of halal compliance

Ingredient approval

Ingredient approval is a crucial step that ensures every component of your product adheres to halal standards. This involves the meticulous vetting of additives, enzymes, and flavorings, as many of these common food components can be derived from non-halal sources. The process requires a detailed list of all ingredients and their origins to confirm they’re permissible.

Furthermore, sourcing traceability is essential, as it allows for a complete audit trail from the raw material supplier to the final product, providing proof of the halal status of every ingredient used.

Slaughtering practices

For meat and poultry products, specific slaughtering practices are a non-negotiable part of halal certification. The Islamic slaughter method (zabihah) requires the animal to be alive and healthy at the time of slaughter, with a single, swift cut to the throat, windpipe, and blood vessels. This ensures the animal's life is taken quickly and humanely. 

Moreover, documentation of the prayer requirement and the method of stunning (if used) is essential to verify that the entire process aligns with Islamic principles.

Manufacturing and processing

Halal compliance in manufacturing and processing is all about ensuring the purity of the production environment. 

To prevent cross-contamination, businesses must either use dedicated facilities for halal production or, if that is not possible, meticulously adhere to approved cleaning protocols for all shared equipment. These protocols ensure all machinery is thoroughly sanitized according to a specific, auditable standard before processing halal goods.

Packaging and labeling

The final stage of compliance involves packaging and labeling. It’s vital to ensure that all packaging materials are free from any haram substances. This includes avoiding materials that contain:

• Gelatin from non-halal animals
• Lard and other pork byproducts
• Plastics or adhesives containing non-halal animal fats
• Inks or colorants derived from non-halal sources

Once certified, the product must display a clear and official halal logo on its packaging, providing immediate visual assurance to consumers.

Preventing cross-contamination

Preventing cross-contamination is central to maintaining halal integrity. This is achieved through a combination of measures, including using dedicated or sanitized equipment for halal production runs. This is where a Halal Assurance System (HAS) becomes crucial. A HAS is a documented management system that a company implements to consistently meet halal requirements. It outlines every step of the process, from procurement to production and storage, ensuring every team member is trained to uphold halal standards and that the entire process is auditable and repeatable.

Legal and regulatory framework in Indonesia

Governing bodies

In Indonesia, the halal certification process is overseen by a dual system: 

• Halal Product Assurance Organizing Agency (BPJPH): This is the government body that issues the final halal certificate. They also play a crucial role in coordinating and implementing policies related to the entire halal certification and assurance process.
• Assessment Institute for Foods, Drugs, and Cosmetics of the Indonesian Council of Ulama (LPPOM MUI), Provincial MUI, Regency/City MUI, Aceh Ulema Consultative Assembly, or the Halal Product Fatwa Committee: These are some of the authorized institutions that conduct the actual inspection and audit to certify if your products and facilities are halal-compliant.

The certification process begins with an application to BPJPH, followed by an audit from LPPOM MUI, whose findings are then reviewed by the MUI Fatwa Commission for final approval before the certificate is issued by BPJPH.

Government regulations

The framework for halal certification is defined by key government regulations (GR) that work in tandem to establish legal requirements and procedures.

• GR 39/2021: This foundational regulation laid the groundwork for mandatory halal certification in Indonesia, establishing the BPJPH as the official certifying body and setting the initial timelines and scope for different product categories. It also outlines a business's fundamental obligations, such as providing accurate and honest product information and maintaining segregated facilities.
• GR 42/2024: This regulation revokes the previous GR 39/2021 by introducing significant updates to the halal law. Most notably, it stipulates that a halal certificate now has an unlimited validity period, provided there are no changes to the product’s composition or the halal product process (PPH). This GR also further breaks down and specifies the obligations laid out in GR 39/2021, providing clearer requirements for businesses.²

Mandatory Certification Scope

Halal certification is mandatory for a wide range of goods and services sold in Indonesia. This includes:

• Goods: Food and beverages, cosmetics, chemical products, biological products, and medical devices like surgical threads.
• Services: Slaughtering, processing, storage, packaging, distribution, and retail of halal products.

Businesses that fail to comply with these regulations face serious legal implications, including administrative penalties, fines, product seizure, and ultimately, a ban on their imports from the Indonesian market.

The halal certification process

1. Pre-application: Internal preparation

Before you even apply for the halal certificate, a crucial internal preparation phase is required. This involves the implementation of a HAS, which must adhere to the international HAS 23000 standard. You must also conduct a thorough internal audit of your products and facilities and prepare all necessary documentation to support your application. This foundational step is critical for ensuring your company is ready for the external audit process.

2. Application process

The official application process begins with registering for a Registration Receipt (STTD) via the BPJPH's online system, where you can retrieve all the necessary documentation. You’ll then select the LPPOM MUI to conduct the product inspection. Next, you must register through the CEROL online system, which is where you’ll upload all remaining required documents.

3. Documentation and record-keeping

During the application, comprehensive documentation is a non-negotiable requirement. This includes all necessary business licenses, ingredient declarations, and proof of your internal audits. For meat and poultry products, there are abattoir-specific requirements, such as documentation proving the slaughterhouse adheres to halal standards. Thorough and accurate record-keeping is vital throughout the process.

4. Facility inspection and compliance audit

Once the application is submitted, a team of auditors will conduct an on-site facility inspection and compliance audit. Their goal is to meticulously verify that all your processes align with your documentation. Auditors will check for proper segregation between halal and non-halal products, confirm the cleanliness of equipment and facility, and ensure that your manufacturing processes consistently adhere to the halal standards you’ve declared.

5. Product testing and analysis

Following the facility audit, a crucial step involves laboratory testing of product samples. This is a final verification designed to detect any potential contamination or traces of non-halal substances that may have been missed during the inspection.

6. Certification decision and issuance of the halal certificate

Following the audit, the results are presented to the MUI Fatwa Commission, which is responsible for the final evaluation of your product’s halal status. If the commission issues a fatwa (a religious ruling or opinion issued by an Islamic scholar or mufti), the certificate is then issued by BPJPH, and your business is officially permitted to use the halal logo on your products, signifying compliance.

Halal certification for foreign products

Foreign businesses must appoint a local importer or representative in Indonesia to handle the certification process on their behalf. Exemptions or fast-track options are available under certain conditions, primarily through mutual recognition agreements where a foreign halal certifier is already recognized by Indonesia’s BPJPH. Registration validity will match the foreign halal certificate’s duration.

Work with DHL Express to ensure you meet import requirements for Indonesia

Navigating the intricate landscape of halal certification and import regulations in Indonesia can be a complex challenge for any business. With DHL Express, you gain a partner with the expertise to simplify this process and ensure your success.

Our deep knowledge of international logistics helps businesses manage halal documentation, customs, and compliance with confidence. We offer a suite of value-added import services, including streamlined customs clearance, robust document tracking, and real-time support to ensure your shipments are processed efficiently. This is all enabled by our extensive global network, which spans over 220 countries and territories, and our proven experience in handling halal-compliant logistics, providing a trusted pathway for your products to reach the Indonesian market.

Ready to simplify your Indonesian import journey? Open a DHL Express business account today and let our expertise be your guide.