Halal Industry and Exports: Testing the Resilience of the Materials Supply Chain

For export-oriented industries, halal certification is not just an administrative matter. It becomes a test of supply chain resilience. Because a single critical-point material that fails to be traced can hold up an entire production batch.

Why the Supply Chain Is the Deciding Factor

Law 33/2014 on Halal Product Assurance regulates the obligation for halal certification, the establishment of BPJPH (Halal Product Assurance Agency), the role of LPH (Halal Inspection Agency), and MUI's authority in determining product halalness. Law 6/2023 simplifies the certification process, introduces a halal statement scheme for UMK (micro, small, and medium enterprises), and opens the way for the Halal Product Fatwa Committee.

That simplification touches the procedural side. But the substance of materials remains the same. The final product is only as strong as the weakest material in its chain.

The reference for implementing the halal product assurance system on the business actor side is Kepka BPJPH 57/2021. This regulation contains five criteria: commitment and responsibility, materials, halal product process, product, and monitoring and evaluation. The regulation has been amended by Kepka 20/2023.

The materials criterion sits in the middle of those five criteria. Its position is strategic. This is where industry meets suppliers, and this is where exports often stumble.

Recurring Critical Points on the Production Line

Several critical-point materials appear repeatedly across product categories. This pattern is important to recognize so that control is not carried out one by one reactively.

• Gelatin. A thickening protein from animal collagen. Its status depends on the source. It is halal only if the source and slaughtering are clear. Alternatives include fish gelatin, halal-certified beef gelatin, or agar-agar and carrageenan as plant-based substitutes. This material is common in marshmallows, jelly candies, medicine and supplement capsules, ice cream, yogurt, and certain bakery products.
• Flavoring. Added flavor whose solvent is often alcohol, and whose base can be animal-derived. Its status depends on the source. The alternative is halal-certified flavoring with plant-based solvents and plant-based or microbial bases. This material is common in soft drinks, snacks, candies, flavored dairy products, and instant noodles.
• L-Cysteine (E920). A dough softener for bread. Historically extracted from human hair or poultry feathers. The alternative is certified L-Cysteine from microbial fermentation, or plant-based dough-softening enzymes. This material is used in mass-produced white bread, burger buns, and commercial pizza dough.
• Taurine. An amino acid in energy drinks. It is now generally synthetic, but historically came from bovine bile. The alternative is synthetic taurine that has been halal-certified. This material also appears in fitness supplements and some pet food.

These four materials show one pattern: halal status does not attach to the name of the material, but to its origin and process. Therefore, supplier documents become evidence that cannot be replaced by assumptions.

Implications for Export Readiness

Export destination countries with halal requirements generally demand a verifiable trace. The question rarely stops at the finished product certificate. The follow-up questions concern the origin of materials, production facilities, and line separation.

At this point, three things become decisive.

1. Availability of supplier documents. Every critical-point material ideally has traceable origin information, not just a verbal statement.
2. Supply consistency. Changes in suppliers or material specifications need to be recorded, because they can change the status of the material.
3. Internal monitoring capacity. The fifth criterion in Kepka 57/2021 requires monitoring and evaluation. Without it, the system is only strong on paper.

Kepka BPJPH 243/2025 on Service Standards at BPJPH sets out 27 types of services complete with requirements, timeframes, and tariffs. Its scope covers LPH accreditation, registration of LP3H and PPH Assistants, issuance of halal certificates, and facilitation codes. This regulation revokes Kepka 120/2022.

For industry, that list of services confirms one thing. The certification path is structured, and each stage requires document readiness on the part of the business actor.

Positioning Halal as a Supply Chain Matter

A long-lasting approach usually does not stop at obtaining a certificate. It builds internal habits. A materials registry is maintained. Critical points are mapped from the product development stage. New suppliers are assessed by the same criteria as existing suppliers.

This approach helps when changes occur. Formula changes, supplier changes, or product line expansion. All are easier to manage if material data has been orderly from the start.

It should be emphasized that the determination of halalness is the authority of the MUI Fatwa Commission or the Halal Product Fatwa Committee. Certificates are only issued by BPJPH. Therefore, the industry's task is to prepare the system and evidence, not to determine the halal status of its own products.

That way, halal certification stops being a temporary project burden. It becomes part of how the company manages its supply chain. For that need, the SJPH platform from IndoHalal.id helps business actors manage all SJPH criteria in one application, from halal policy, materials registry, critical points, internal audit, to BPJPH certification readiness.