Halal Industry and Exports: Mapping Risky Ingredient Supply

For export-oriented industries, halal certification is not just about compliance. It concerns product acceptance in destination markets. When one ingredient's origin cannot be traced, an entire batch can be held. Therefore, mapping risky ingredient supply becomes routine work, not a one-time project.

The Existing Framework

The framework is already available. Head of BPJPH (Halal Product Assurance Agency) Decree Number 57 of 2021 establishes the criteria for the Halal Product Assurance System (SJPH), which covers commitment and responsibility, ingredients, halal product processes, products, and monitoring and evaluation. This decree was later amended by Kepka 20/2023.

For accreditation of Halal Inspection Bodies (LPH), the reference used is SNI ISO/IEC 17065:2012. This standard governs impartiality, confidentiality, personnel competence, complaint and appeal management, and accountability.

Meanwhile, Minister of Religious Affairs Decree Number 748 of 2021 establishes the types of products that must be halal certified along with their phasing, and has been amended by KMA 944/2024. BPJPH's own service standards were updated through Kepka BPJPH 243/2025, which establishes 27 types of services along with requirements, timeframes, and tariffs, and revokes Kepka 120/2022.

For industry, these four documents form a single chain: what is mandatory, how the system is built, how it is inspected, and how services are accessed.

Risky Ingredients on the Production Line

Export problems often arise from ingredients that appear simple. Some of them require special attention.

Carmine or Cochineal (E120)

This natural red dye from the cochineal insect has syubhat (doubtful) status because scholars differ in opinion. This ingredient is commonly found in red-colored beverages, candy, lipstick, fruit yogurt, and processed meat products. The alternative is plant-based red dyes such as beet, anthocyanin, or lycopene.

Whey and Caseinate

These milk derivatives are basically halal. However, the cheese-making process from which they are sourced may use animal rennet. This ingredient is widely used in formula powdered milk, protein drinks, bread and bakery products, and processed cheese. Safer alternatives are whey or caseinate from producers that declare the use of microbial rennet, or halal-certified animal rennet.

Animal Fat and Shortening

This solid fat from animals for frying and baking depends on its source. Lard from pigs is absolutely haram. This ingredient is common in cookies, pastry, donuts, instant noodles, and packaged fried products. Alternatives are palm oil, coconut oil, vegetable margarine, or shortening from halal-certified beef fat.

Flavoring

This added flavoring often uses alcohol as a solvent, and its base can be animal-derived. Flavoring is widely used in soft drinks, snacks, candy, flavored dairy products, and instant noodles. Alternatives are halal-certified flavorings with plant-based solvents and plant-based or microbial bases.

From Ingredient List to System

Mapping risky ingredients alone is not enough. Industry needs to close gaps with auditable steps.

1. Compile an ingredient registry containing trade names, batch numbers, manufacturers, and countries of origin.
2. Collect supporting documents for each ingredient, including supplier halal certificates if available.
3. Identify critical points for ingredients whose status depends on the source, such as whey, caseinate, shortening, and flavoring.
4. Establish substitute ingredients for each critical point so production does not stop when supply is disrupted.
5. Conduct periodic internal audits against SJPH criteria.
6. Keep monitoring and evaluation records as evidence of system continuity.

These steps align with the SJPH criteria in Kepka 57/2021. They also facilitate the inspection process by LPH, which refers to SNI ISO/IEC 17065:2012, because documents and procedures are already available before the auditor arrives.

Why This Determines Exports

Destination markets that apply halal requirements will check documents and ingredient origins. Unclear origin of one ingredient can hold up shipments, trigger product recalls, or close access to certain buyers. Conversely, well-organized supply provides advantages: easier negotiations, more predictable delivery times, and lower dispute risk.

It should be noted that the determination of halalness is the authority of the MUI Fatwa Commission or the Halal Product Fatwa Committee, while certificates are only issued by BPJPH. Therefore, industry should view certification as the end result of a functioning system, not as the sole goal.

For companies that want to organize all SJPH criteria in one place, from halal policy, ingredient registry, critical points, to internal audits and BPJPH certification readiness, the SJPH platform from IndoHalal.id can be an option to streamline the process.