Mandatory Halal Certification: More Than Just a Formality

The Indonesian government continues to encourage businesses to comply with the mandatory halal certification as consumer awareness about the importance of halal products increases.

This is reflected in various regulations, particularly Law No. 33 of 2014 concerning Halal Product Assurance and its derivatives, which emphasize the significance of halal certification for consumer products, including food, food ingredients, and slaughter products.

Key Takeaways

• Mandatory Compliance: Halal certification is a legal requirement for businesses operating in certain sectors in Indonesia, helping ensure that products meet Islamic dietary standards.
• Consumer Assurance: The certification assures Muslim consumers that the products they use comply with their religious beliefs, increasing consumer trust and satisfaction.
• Business Benefits: Beyond compliance, halal certification opens up access to new markets, particularly in regions with large Muslim populations like the Middle East and Southeast Asia.
• Avoid Penalties: Failing to obtain halal certification by the stipulated deadlines can lead to severe penalties, including fines, product withdrawal from the market, and damage to business reputation.

Stages and Deadlines for Mandatory Halal Certification

The first phase of the mandatory halal certification for food, beverages, food ingredients, and slaughter products, as stipulated in Government Regulation (PP) No. 39 of 2021, will conclude on October 17, 2024.

After this date, products from medium—and large-scale companies must be halal-certified. However, the government has granted an extension for micro and small enterprises (MSEs) by delaying the enforcement of mandatory halal certification until October 2026.

This delay aims to provide MSEs more time to prepare to meet certification standards.

Why Halal Certification Important

Halal certification is not only a legal obligation but also offers several advantages for businesses. The benefits that businesses can gain from halal certification include:

• Consumer Trust
  Products with halal certification hold greater appeal to Muslim consumers who want to ensure that the products they consume comply with Islamic law. 
  
• Market Competitiveness
  Halal-certified products can be easily marketed in countries with large Muslim populations, such as those in the Middle East and Southeast Asia.
  
• Support from Government and Religious Institutions
  Halal certification facilitates collaboration between businesses, the government, and religious institutions to ensure that the products sold are safe and compliant with Islamic law. It also assures consumers regarding the halal status of the products marketed.
  

Sanctions for Businesses Without Halal Certification

Mandatory halal certification cannot be ignored by businesses, especially after the deadlines set by the government. The sanctions that may be imposed on businesses include:

• Written Warning: The PT name must not contain words that are contrary to morality, religion, or public order.
• Administrative Fines: The name must not be identical or similar to the names of state institutions, government agencies, or international organizations unless authorized by the respective institution.
• Revocation of Halal Certification: For products that have already obtained halal certification but subsequently violate applicable regulations, the certification may be revoked, and the company will no longer be allowed to use the halal label on its products.
• Product Withdrawal from The Market: In more serious cases, businesses may face sanctions of product withdrawal from the market. This can have a significant impact on business continuity, as product withdrawal not only causes financial losses but also damages the company’s reputation.

How Permitindo Can Help Your Halal Certification Process

Mandatory halal certification reassures consumers about product compliance with Islamic laws, presenting businesses with an opportunity to expand their markets and build trust.

With Permitindo’s expert guidance, proactive companies can avoid sanctions while gaining consumer trust and access to new markets. Secure your brand’s future by partnering with Permitindo for efficient Halal registration. Fill out the form below to get started.