Indonesian Halal Regulations & Industry’s Concerns

According to the Indonesian Law no. 33/2014, Cosmetics or Food Supplement manufacturers in Indonesia are required to obtain a halal certificate before their distribution in the country. The halal product regulations were supposed to come into effect from October 2019.  But in recent turn out of events, according to the new plan of Halal Product Assurance Agency (BPJPH), manufacturers will be given a deadline up to 2024 to obtain the halal certification. The reason behind this is that there are fears surrounding decrease in the supply of lifesaving vaccines and other necessary products.

Despite this, the industry and the manufacturers have few other concerns regarding the new regulations, such as:

1. Since the halal law is very strict, the Pharmaceutical Manufacturing Group is concerned that the BPJPH might end up declining some of the lifesaving products (such as vaccines containing blood) after the deadline.
2. Because of the strict halal regulations, companies might not want to manufacture products specifically for the Indonesian market, as the country’s market share is not very high.
3. As per the halal regulations, it is not clear whether a product with non-halal ingredients needs to be declared as “Non-halal” or not.
4. There are no established guidelines for halal regulations.
5. Manufacturers are concerned about that along with the finished products, the regulations would also affect the raw materials, adhesives, processed materials etc.
6. Obtaining the certificate from the halal authority is a costly affair.

The implementation of the halal law is mostly hindered by the fact that the guidelines are subject to frequent modifications. If the government decides to establish the law any sooner than the suggested date, they might have to address the concerns of the industry to clear out the ambiguities.

How will the halal regulations impact the food and cosmetics business of Indonesia? This question can only be answered once the law comes into effect. Keep track of the regional guidelines to make a successful and compliant market entry in Indonesia. Stay up-to-date. Stay compliant.