Halal Industry and Exports: Indonesia's Product Certification Readiness

For industry, halal certification is not just a matter of administrative compliance. A halal certificate shows that a product, its process, and its supply chain have been examined against specific requirements. For businesses targeting export markets, this document is part of product readiness before entering the destination country.

This article discusses the industry and export side: the applicable regulatory framework, critical ingredient points that often require attention, and the system readiness that needs to be built.

The Regulatory Framework as Reference

The halal certification obligation is based on Law Number 33 of 2014 on Halal Product Assurance. This law governs the certification obligation, the establishment of BPJPH (the Halal Product Assurance Agency), the role of LPH (Halal Inspection Agencies), and MUI's authority in determining product halalness.

The product groups required to be halal-certified are stipulated through Minister of Religious Affairs Decree Number 748 of 2021. This provision was later amended by KMA 944/2024. This means the product list and its phasing need to be monitored so as not to refer to provisions that have changed.

At the implementation level, Government Regulation Number 42 of 2024 on the Implementation of Halal Product Assurance replaces PP 39/2021. This PP governs the procedures for establishment, accreditation, scope of activities, and revocation of LPH approval, as well as the appointment and dismissal of Halal Auditors.

It should be emphasized: the determination of halalness is the authority of the MUI Fatwa Commission or the Halal Product Fatwa Committee. Certificates are only issued by BPJPH. For industry, these two matters are important to understand so as not to confuse the inspection results with the determination of halal status.

Halal Inspection Agencies and Accreditation Standards

Product inspection is carried out by Halal Inspection Agencies. In their accreditation, LPH refers to SNI ISO/IEC 17065:2012, the standard for bodies certifying products, processes, and services.

This standard governs impartiality, confidentiality, personnel competence, complaint and appeal management, and accountability. For exporting industries, an LPH working to this standard helps ensure that the inspection process runs consistently and can be accounted for.

Understanding this standard is also useful when a company prepares documentation. Auditors will work according to the same framework, so tidy and traceable evidence facilitates the inspection process.

Critical Ingredient Points in the Industrial Context

At industrial scale, ingredient issues do not stop at a single supplier. Companies need to trace ingredients back to the original manufacturer, especially for ingredients whose status depends on their source.

Animal-derived ingredients

• Whey and caseinate. These milk derivatives are themselves halal, but the cheese-making process from which they are sourced may use animal rennet. Manufacturers need to ensure suppliers state the use of microbial rennet or halal-certified animal rennet.
• Collagen. A structural protein from animal skin or bone, so its source determines halalness, just like gelatin. Alternatives are fish collagen or halal-certified beef collagen.

Chemical additives

• L-Cysteine (E920). A dough conditioner for bread that has historically been extracted from human hair or poultry feathers. A traceable alternative is L-Cysteine from microbial fermentation or plant-based dough-conditioning enzymes.
• Stearic acid and magnesium stearate (E470, E572). Anti-caking agents in tablets and powders that may come from palm oil or animal fat. Halal-certified plant-based versions generally come from palm oil.

These ingredients appear in formula products, supplements, mass-produced bread, and cosmetics. For industries producing in large volumes, a supplier change for any one ingredient can affect the entire product line.

System Readiness for Export Markets

Export destination countries have their own requirements. Therefore, a halal certificate from Indonesia should be treated as part of a readiness strategy, not the end point.

Several things industry needs to build:

1. An up-to-date ingredient registry. Record every ingredient, supplier, and supporting document. Even the smallest change needs to be recorded.
2. Traceability back to the original manufacturer. Documents from intermediary traders alone are not sufficient for ingredients whose status depends on their source.
3. Production line segregation. Ensure ingredient and equipment flows prevent cross-contamination.
4. Periodic internal audits. Systems that are not tested tend to loosen over time.
5. Personnel readiness. Halal supervisors and related teams need to understand the critical points in the products they handle.

Destination country requirements may differ from domestic provisions. Therefore, it is important to check the target market's requirements early, not after the product is ready to ship.

Closing the Gap between Documents and Practice

The problem that often arises in industry is not the absence of documents, but the gap between documents and practice on the ground. A complete ingredient registry means little if the production line does not reflect the recorded flow.

Therefore, certification readiness should be checked periodically. For industries wanting to manage SJPH (Halal Product Assurance System) criteria in an integrated way—from halal policy, ingredient registry, critical points, to internal audits—the SJPH platform from IndoHalal.id can be a tool to map that readiness before inspection by an external party.