Halal Regulation in Indonesia – Obligations

Review by : Yuli SE., MM

When it comes to selling your products in Indonesia, one must consider in obtaining the halal certification. The certification will allow the Muslim consumers in Indonesia to consume products that are not forbidden according to the Islamic Law. These consumers often ask companies or check on the products for the halal logo.

So here are the Halal Regulation in Indonesia that needs to be known in case you want to market your product as safe to consume to the Muslims in Indonesia. Also feel free to keep reading to know what the regulation is like in Indonesia since every country has their own rules.

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Why Halal Matters in Indonesia

The halal certification is often found in many food and drink products in Indonesia. There are some things that are not permissable for Muslims to consume. They are considered as haram. The word halal itself means lawful according to the Islamic Law.

In Islam, animals must also be slaughtered in the name of God only. God gives them life and so their lives can only be taken away under the name of God. Even before killing an animal for human survival, one must utter bismillah which means ‘in the name of God’. Muslims are not allowed to consume forbidden products and animals that are not killed in the name of God.

The population in Indonesia consists many people that are Muslim. From the consumers’ point of view, the halal certification will make it easier to make decisions on what is okay for them to consume. As for the business aspect, it’s very important to pull in as many consumers as possible to create a big income. The certification will also help them to safely promote the product in the country as it already clear that their product is halal.

How Halal Regulation Works in Indonesia

In Indonesia, there are two groups that are allowed to be in charge of the halal certification. The main one is the Majelis Ulama Indonesia known as MUI. This group is always involved in the Islamic matters within the country.

The second group is the Drug and Cosmetics Assessment Agency known as LPPOM in Indonesia. This particular agency works under the MUI. They carry out all the audit, the assessment of the company and the testing of the product.

Almost all the products in Indonesia are required to get the halal certification to be sold in Indonesia. Both the MUI and LPPOM in Indonesia will ensure that products will earn the halal certification as long as they all follow through all the requirements.

You may want to read on Drinking Law in Indonesia and Prohibited Medicines in Indonesia

Regulations for Halal Food

As for edible plants, cosmetics and other various products, to be considered halal they all must not contain any ingredients that are haram. The equipments and the method used to make the products must also obey the Islamic Law. All toxic and hazardous ingredients must also be removed.

Below are more regulations for food and other kinds of products to be considered as halal:

Must not be made with any haram ingredients.
Preparation, process and storage of food or products with non-halal things is allowed as long as they do not come in contact with each other.
Companies may choose to use equipments or facilities that have been used to create non-halal products. However, they all must be cleaned thoroughly under the Islamic rules.
Distribution of halal products must not be put together with the distribution of non-halal products.
In particular, animals that are used for humans’ means of survival must be slaughtered according to the Islamic Law. Only through that the product is considered to be halal.

Advantages of Having Halal Certification

In Indonesia, there is always a demand for halal products since the majority of the population is muslim. Companies might have to go through the rigorous process for obtaining the certification but it can actually turn out to be beneficial for the business. Here are some of the plus sides on having a halal certification on a product:

Indonesian consumers will want to purchase your product as they trust it. A halal certification is a guarantee that the food they are consuming is safe and suits their beliefs.
It will be easier to import products overseas in case the halal certification is needed. The muslim abroad will also have a wider option for halal products to choose from.
In case a customer is using your halal product to make something else, it will be easier for them to obtain the certification too. This could mean that your product will piqued the interest of more consumers looking for the same halal ingredient.
Your product will stand out more with the halal logo. People looking for halal products will notice the logo and choose to buy the product.
As soon as you advertise your halal product, you’ll be able to reach a wide audience. When your product is halal, you are not excluding the muslims who want to purchase safe products to use and consume.

However, all these great advantages to having a halal certification can be lost once a product is found to be haram. The certification will be revoked and if there’s a false information found within the company then there could be a lawsuit. People lying about it can be jailed from 2 up to 8 years in prison.

Also read on Consumer Buying Habits in Indonesia and Social Factors Effecting Business in Indonesia

Rules in Getting the Halal Certification

There are some rules that a company or person must go through to obtain the halal certification for their product. First of all, they must register the product for qualification. They can do online registration through the LPPOM-MUI website. On the website people can either apply for renewal or new registration for their product.

There are all sorts of registration data that must be completed. Once that is done, there is also a registration fee to be paid. People must state the purpose for obtaining the halal certification. Other than that, they must also tell the reasons why the product is put on the market. For instance, the product might be meant for restaurant business or public consumption.

Haram Products in Indonesia

The following items are considered to be non-halal food and drinks:

Anything that is gained from pigs which include pork and bacon.
Alcoholic drinks.
Meat broth without the Halal certification.
Dogs.
Crocodiles.
Turtles.
Frogs.
Animals with pointed teeth such as tigers, cats, monkeys and many more.
Creatures with long tusks like elephants.
Ingredients and creatures that are not killed or not obtained through the Islamic Law of animal slaughter.

Products containing the above ingredients will be rejected for the halal certification. Equipments and methods in making products that are considered as haram will not be considered as halal too.

For some, getting the halal certification might be difficult. There is a lot to do and the process can take some time. Another concern is the chance of getting rejected. However difficult the whole road on getting the halal certification, it must be done in Indonesia. The halal regulation in the country is no joking matter.

Muslims in Indonesia are always eager in knowing how and where their things are obtained. It’s a way of life for them and they have the right to know whether their product is halal or not.