KMA 748/2021 and Its Practical Consequences for Business Actors

The halal certification obligation in Indonesia does not apply simultaneously to all products. There are rules that determine which product groups fall under the obligation, and how that obligation is applied in stages. Those rules are Minister of Religious Affairs Decree Number 748 of 2021 on Types of Products Required to Be Halal-Certified.

For business actors, understanding this rule is important not only to know whether their products are among those required to be certified. Equally important is understanding its practical consequences: what must be prepared, which documents need to be traced, and which parts of the production chain must be addressed first.

The position of KMA 748/2021 within the halal product assurance framework

KMA 748/2021 is a derivative of Law Number 33 of 2014 on Halal Product Assurance. That parent law governs the halal certification obligation, 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.

KMA 748/2021 then sets out the product groups that must be halal-certified along with their phasing. This rule has been amended by KMA 944/2024. Therefore, business actors need to ensure that the reference used is the version in force, not the old version.

One fundamental point should be noted. The determination of halal status is the authority of the MUI Fatwa Commission/Halal Product Fatwa Committee. Halal certificates are issued only by BPJPH. KMA 748/2021 does not change that authority; it regulates the obligation and phasing side for business actors.

First consequence: the obligation to follow the stages, not to wait

Because the obligation is applied in stages, business actors need to know at which stage their products fall. Misreading the stages can result in two things: preparing too early for products not yet covered by the obligation, or preparing too late for products already covered.

The safest approach is to map the product portfolio based on the regulated groups, then prepare the system earlier. System preparation does not depend on when the obligation takes effect. A well-organized system will remain useful even when a product is not yet required to be certified.

Second consequence: the halal product assurance system must genuinely be in operation

The halal certification obligation does not stop at submitting documents. On the business actor's side, there is a system implementation reference that must be met, namely the Criteria for the Halal Product Assurance System as stipulated in BPJPH Head Decree Number 57 of 2021. That rule contains five criteria: commitment and responsibility, materials, halal product processes, products, and monitoring and evaluation. That decree has been amended by Kepka 20/2023.

The five criteria have different practical consequences. Commitment and responsibility require a written policy and personnel who run the system. The materials criterion requires tracing the origin of every material. The process criterion requires segregation and control to prevent contamination. The product criterion requires consistency of results. The monitoring and evaluation criterion requires internal audits and follow-up.

This means that business actors who only prepare material documents without fixing the process will face problems under the other criteria.

Third consequence: material critical points must be traced one by one

In practice, the most time-consuming part is tracing materials. Some materials have a status that depends on their source, so they cannot be assessed from the material name alone.

• Whey and caseinate. These milk derivatives are themselves halal, but the cheese-making process from which they are sourced may use animal rennet. The alternative is whey or caseinate from producers that state the use of microbial rennet or halal-certified animal rennet. These materials are commonly used in formula powdered milk, protein drinks, bread and bakery products, and processed cheese.
• Microbial enzymes for food processing. A broad category of enzymes such as amylase, protease, and lipase that may be sourced from microbial, plant, or animal sources. The alternative is halal-certified microbial enzymes from fermentation, accompanied by source documents from the supplier. Their uses include glucose and fructose syrup, meat tenderizers, and juice and cheese production.
• Alcohol-solvent propolis. The source is halal, but the extraction process generally uses high-concentration ethanol. The alternative is water-extracted propolis or alcohol-free propolis powder. This material appears in immune supplements and related products.
• Perfume and fragrance ingredients. Cosmetic fragrances generally use high-alcohol solvents and may contain animal musk. The alternative is alcohol-free perfume or halal-certified synthetic musk.

The same pattern applies to other materials. What is needed is not a quick assessment, but documents from suppliers that clearly explain the source of the material.

Fourth consequence: regulatory changes must be monitored

Several regulations within this framework have amended status. KMA 748/2021 has been amended by KMA 944/2024. Kepka BPJPH 57/2021 has been amended by Kepka 20/2023. Law 33/2014 has amended status. Meanwhile, PP 42/2024 on the Implementation of the Halal Product Assurance Sector applies as a replacement for PP 39/2021 and governs the procedures for the establishment, accreditation, scope of activities, and revocation of LPH approval, as well as the appointment and dismissal of Halal Auditors.

The practical consequence is simple: the reference documents used by the internal team must be checked for their version periodically. Working with references that have already been amended risks producing preparations that are not compliant.

What can be prepared in advance

There are several steps that do not depend on the phasing status of a product. First, mapping all products and materials used. Second, collecting source documents for materials from suppliers, especially for materials whose status depends on the source. Third, establishing a written halal policy and responsible personnel. Fourth, preparing an internal audit mechanism.

Those steps are part of the five SJPH criteria. Working on them early makes the certification process run more smoothly when the obligation stage arrives.

To manage all SJPH criteria in one place, from halal policy, material registry, and critical points to internal audits and BPJPH certification readiness, IndoHalal.id provides an SJPH platform that your team can use on an ongoing basis.