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Industry & Export

Indonesia's Halal Industry and Exports: Regulation, Ingredients, and Markets

Halal certification is not merely a domestic obligation. For export-oriented industries, it concerns the readiness of ingredient documents and supplier traceability.

R
Redaksi IndoHalal
November 11, 2026 · 5 min read
41
Large container ship Edith Maersk docked at Hamburg harbor during evening lights.

For export-oriented industries, halal certification is not only about meeting domestic obligations. A halal certificate is part of the document readiness demanded by buyers in destination countries. Therefore, businesses need to understand three interrelated matters: the regulatory framework, critical ingredient points, and their practical consequences for the supply chain.

The regulatory framework that needs to be understood

The main foundation of halal product assurance in Indonesia is Law Number 33 of 2014 on Halal Product Assurance. This regulation governs the obligation for halal certification, the establishment of BPJPH (the Halal Product Assurance Agency), the role of LPH (Halal Inspection Agencies), and MUI's authority in determining the halal status of products.

Its implementation is regulated more technically through Government Regulation Number 42 of 2024 on the Implementation of Halal Product Assurance. This regulation replaces PP 39/2021 and governs the procedures for the establishment, accreditation, scope of activities, and revocation of LPH approval, including the appointment and dismissal of Halal Auditors.

On the service side, the Head of BPJPH Decree Number 243 of 2025 on Service Standards at BPJPH sets out 27 types of services complete with requirements, timeframes, and tariffs. These services cover LPH accreditation, registration of LP3H and PPH Facilitators, issuance of halal certificates, and facilitation codes. This decree revokes Kepka 120/2022.

Meanwhile, the types of products that must be halal-certified along with their phasing are stipulated through Minister of Religious Affairs Decree Number 748 of 2021, which was later amended by KMA 944/2024.

It should be noted that the determination of halal status is the authority of the MUI Fatwa Commission or the Halal Product Fatwa Committee. Certificates are only issued by BPJPH. Businesses do not determine the halal status of their own products.

Why critical ingredient points determine export readiness

In practice, certification obstacles for industries rarely stem from a lack of intent. Obstacles more often arise from ingredients whose status is unclear and incomplete supplier documents. Several ingredients require special attention.

Alcohol and ethanol

Alcohol or ethanol is a solvent and preservative whose status depends on the source, concentration, and purpose of use. This ingredient is commonly used as a solvent for flavorings and colorings, vanilla extract, fermented products such as soy sauce, tapai, and tempoyak, as well as liquid medicines. The alternatives are non-alcoholic plant-based solvents, or synthetic/industrial ethanol with source and concentration documents verified by LPH.

Yeast

Yeast is generally halal, but its growth medium needs to be checked. Its uses include bread, non-alcoholic beer, fermented products, and instant yeast for household packaging. Yeast with a halal-certified plant-based growth medium has generally become the standard in modern industry.

Shellac

Shellac with the code E904 is a glossy coating made from the resin of the lac insect. Materially it is generally tolerated, but the process needs to be checked. This ingredient is used for glossy coatings on candy, medicinal pills or supplements, and coatings for fresh fruit. The alternatives are halal-certified shellac with verified solvents, or plant-based coatings such as pure carnauba wax.

Gelatin capsule shells

Gelatin capsule shells are the critical point most often overlooked by consumers. This ingredient is used in prescription and over-the-counter medicines, vitamin supplements, and fish oil in softgel form. The alternatives are plant-based capsules made from HPMC (hydroxypropyl methylcellulose) or halal-certified bovine gelatin capsules.

Consequences for the industrial supply chain

The list of ingredients above shows one pattern: an ingredient's status cannot be assessed from its name alone. What determines it is the source, the process, and the documents that accompany it. For industries, the consequences lie in three things.

  • Supplier traceability. Every critical ingredient requires source documents that can be verified by LPH. Without them, the certification process stops at the same point.
  • Formulation consistency. Changes in suppliers or ingredients can change the status of critical points. The halal product assurance system needs to capture these changes before they become a problem.
  • Audit readiness. Halal Auditors examine whether the system is running, not merely whether it exists in documents. Production records and ingredient registries are the main evidence.

Thus, export readiness is not built on the eve of an inspection. It is built from the habit of documenting ingredients and supplying them consistently.

Practical steps that can be started

  1. Map all ingredients that enter the product, including auxiliary ingredients and coatings.
  2. Flag ingredients whose status is syubhat (doubtful) or depends on the source, such as ethanol, shellac, and gelatin.
  3. Request source documents from suppliers for each flagged ingredient.
  4. Record changes in suppliers or formulations as part of internal control.
  5. Ensure that the personnel running the system understand their roles, not just the certification team.

This approach does not guarantee any outcome. However, it makes the certification process run with ingredients that can be accounted for, and that is what is examined.

To manage the criteria of the halal product assurance system comprehensively, IndoHalal.id provides an SJPH (Halal Product Assurance System) platform that helps map ingredient registries, critical points, and audit readiness in one place.

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Jawaban konsultan bersifat panduan teknis. Penetapan kehalalan produk adalah kewenangan Komisi Fatwa MUI atau Komite Fatwa Produk Halal, dan sertifikat halal hanya diterbitkan oleh BPJPH.