Halal Industry and Exports: Organizing the Supply Side of Ingredients

Halal certificates are often seen as an end matter: documents obtained after a product is finished being produced. In industrial and export practice, certificates are actually the result of decisions made far upstream, when ingredients are selected and suppliers are determined. At that point, the competitiveness of Indonesian halal products in the global market is largely determined.

Why the supply side is more decisive

A finished product is a collection of ingredients. If one ingredient has a problem, the entire production chain is affected. Therefore, the industry's ability to trace the origin of ingredients becomes the main determinant, not merely administrative completeness.

The management framework is already available. Decree of the Head of BPJPH (Halal Product Assurance Agency) Number 57 of 2021 concerning the Criteria for the Halal Product Assurance System, as amended by Kepka 20/2023, contains five criteria: commitment and responsibility, ingredients, halal product process, product, and monitoring and evaluation. The ingredient criteria place registry and traceability as part of the system, not as additional work.

From an institutional perspective, Government Regulation Number 42 of 2024 concerning the Implementation of Halal Product Assurance regulates the procedures for establishment, accreditation, scope of activities, and revocation of approval of Halal Inspection Bodies (LPH), as well as the appointment and dismissal of Halal Auditors. This means that the inspection ecosystem on the upstream side is also being organized, in line with the industry's need for accountable ingredient verification.

Critical points that often appear in the supply chain

Several ingredients repeatedly become a concern because their status depends on the source and process. The following ingredients usually have source-dependent status, so they cannot be assessed by name alone.

• Pepsin. A protein-digesting enzyme from the stomach of pigs or cattle, used in the cheese and pharmaceutical industries. Alternatives are pepsin from the stomach of halal-certified cattle, or microbial protease enzymes as a substitute.
• Alcohol-solvent propolis. The source is halal, but the extraction process generally uses high-concentration ethanol. Alternatives are water-based or glycerin-based propolis extract or alcohol-free propolis powder.
• L-Arginine and other amino acids. They can be the result of microbial fermentation, or extraction from animal sources. Alternatives are amino acids from halal-certified microbial fermentation with traceability documents from the supplier.
• Perfume or fragrance ingredients. They generally use high-alcohol solvents and may contain animal musk. Alternatives are non-alcohol perfume (alcohol-free fragrance) or halal-certified synthetic musk.

For export-oriented industries, this list is important because destination countries may have their own requirements. Neat traceability makes it easier for producers to answer questions from buyers and authorities in destination countries, without having to rearrange documents every time there is a request.

Certificate obligations and their phasing

Minister of Religious Affairs Decree Number 748 of 2021 concerning Types of Products Required to Be Halal-Certified stipulates the product groups required to be halal-certified along with their phasing, and has been amended by KMA 944/2024. For industry, this phasing provides room to adjust the supply chain gradually, especially for ingredients whose suppliers are limited.

It should be noted that determining the halalness of a product is the authority of the MUI Fatwa Commission or the Halal Product Fatwa Committee. Halal certificates are only issued by BPJPH. Therefore, a company's internal assessment does not replace that determination process.

Practical steps on the industry side

1. Map all ingredients, including auxiliary ingredients and ingredients not visible on consumer labels.
2. Mark ingredients with source-dependent status and request traceability documents from suppliers.
3. Prepare supplier alternatives for ingredients whose critical points are difficult to resolve.
4. Keep records of ingredient changes, because one substitution can change the assessment.
5. Carry out monitoring and evaluation as a routine part, not an activity just before an audit.

In this way, certification is no longer a burden at the end of the process. It becomes a consequence of a supply chain that is already organized, as well as capital for competing in the export market.

To organize the ingredient registry, critical points, and audit readiness in one place, the SJPH platform from IndoHalal.id can help businesses manage all SJPH criteria sustainably.