Regulatory updates regarding Indonesia’s Halal

We are pleased to update you on the regulatory updates regarding Indonesia’s Halal regime. The government regulation no. 39/2021 regarding THE ORGANIZATION OF HALAL PRODUCT GUARANTEES is issued in February 2021 as an implementing regulation of the Job Creation Law No. 11/2020 (known as “Omnibus Law”).  Enclosed is the respective regulation in English and Bahasa Indonesia versions.

For your further reading, please find below the analysis from the Indonesian legal centre “Hukum Online” on this regulation. Please kindly note that to read the below analysis on the original website is in this link : Regulatory updates regarding Indonesia’s Halal and you will have to be a registered member.

Govt. Finally Updates Provisions on the Implementation of Halal Product Guarantees

In an attempt to accommodate the various revisions originally set out under Law No. 11 of 2020 on Job Creation (“Job Creation Law”), specifically provisions that address halal products, the government recently issued Regulation of the Government No. 39 of 2021 on the Organization of Halal Product Guarantees (“Regulation 39/2021”) as one of the various implementing regulations to the new Job Creation Law.

As Regulation 39/2021 will now serve as the new legal framework for all halal product-related matters, replacing the previous framework of Regulation of the Government No. 31 of 2019 on the Implementing Regulation to Law No. 33 of 2014 on Halal Product Guarantees (“Regulation 31/2019”),[1] it necessarily addresses a broad range of subject matter. In order to deliver a concise yet essential summary of Regulation 39/2021, this edition of Indonesian Legal Brief (ILB) will specifically discuss the following areas:

  1. The halal certification obligation;

  2. The halal certification procedure;

  3. Halal labeling and non-halal information; and

  4. Gradual implementation of halal certification.

The Halal Certification Obligation

As a general rule, all products that enter, circulate and are traded within the territory of Indonesia must be covered by halal certification,[2] which signifies that the products in question are produced from halal materials and have been subject to halal product processing (Proses Produk Halal – “PPH”).[3] However, products that are produced from non-halal materials are exempt from the halal certification obligation and instead, non-halal descriptions should be provided for such products.[4]

In order for business actors to apply for halal certification, the following requirements must first be fulfilled:[5]

  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. Halal supervisors (or penyelia halal – in Bahasa Indonesia) must be appointed; and
  4. Any changes that are made to the relevant material compositions must be reported to the Halal Product Guarantee Agency (Badan Penyelenggara Jaminan Produk Halal – “BPJPH”).

In terms of the appointment of halal supervisors, Regulation 39/2021 further stipulates that only Muslim citizens with a broad knowledge and understanding of matters relating to halal products (as proven through the possession of halal supervision certificates) may be appointed as halal supervisors.[6] After citizens who satisfy the abovementioned requirements have been identified, the heads of business actors must then submit information relating to the appointment of halal supervisors to the BPJPH enclosing the following required documents:[7]

  1. Identity cards (Kartu Tanda Penduduk/KTP) of halal supervisors;
  2. Resumes of halal supervisors;
  3. Authenticated copies of halal training and competence certificates; and
  4. Authenticated copies of the relevant halal supervisor appointment documents.

The Halal Certification Procedure

The overall halal certification procedure, as stipulated under Regulation 39/2021, is as outlined in the flowchart below:

Halal Indonesia 1

One of the major changes that has now been introduced under Regulation 39/2021 relates to the incorporation of electronic systems and facilities into the overall halal certification procedure. This move represents an advance over the halal certification procedure established under Law No. 33 of 2014 on Halal Product Guarantees (“Law 33/2014”), which only recognized written halal certification applications.[8]

Halal Labeling and Non-Halal Information

Pursuant to Regulation 39/2021, business actors are required to affix halal labeling (that features logos and certificate numbers) to products that have secured halal certificates.[9] Said halal labeling must be affixed to the following places: 1) Product packaging; 2) Certain parts of products; and/or 3) Specific places on products.[10] However, it is important to note that the mandatory affixation of halal labeling exempts the following products:[11]

  1. Products that are produced in packaging that is too small to include all of the relevant information;
  2. Products that are sold and packaged directly in front of buyers in small quantities; and
  3. Products that are sold in bulk.

Meanwhile, business actors which produce non-halal products are also required to affix non-halal information to their products. Said information should be placed in the same locations on non-halal products as those outlined above and should take the form of pictures, marks and/or texts.[12]

Gradual Implementation of Halal Certification

According to Regulation 39/2021, mandatory halal certification is to be implemented on a gradual basis in accordance with product type.[13] The various timelines for the implementation of mandatory halal certification for different product types are set out in the table below:[14]

Halal Indonesia 2

Regulation 39/2021 has been in force since 2 February 2021.

[1] Art. 171, Regulation 39/2021.

[2] Art. 2 (1), Regulation 39/2021.

[3] Arts. 2 - 3, Regulation 39/2021.  

[4] Art. 2 (2 - 3), Regulation 39/2021.

[5] Art. 49, Regulation 39/2021.

[6] Art. 53 (1 - 2), Regulation 39/2021.

[7] Art. 57 (1), Regulation 39/2021.

[8] Art. 29, Law 33/2014.

[9] Arts. 87 (1) and 89, Regulation 39/2021.

[10] Art. 91 (1), Regulation 39/2021.

[11] Art. 91 (3), Regulation 39/2021.

[12] Art. 92 (2), Regulation 39/2021.

[13] Art. 139, Regulation 39/2021.

[14] Arts. 140 and 141 (1), Regulation 39/2021.