Law 6/2023 and Changes to Halal Regulations: What Impact Do They Have on Businesses?

Law Number 6 of 2023 on the Enactment of the Job Creation Perppu into Law brings changes to the regulation of halal product assurance in Indonesia. This law is the latest amendment to Law 33/2014. For businesses, this change is not merely a replacement of the legal basis, but affects how certification is carried out and what needs to be prepared.

Three Main Changes

The regulatory summary identifies three directions of change. First, the certification process is simplified. Second, a halal declaration scheme (self-declare) is introduced for micro and small enterprises (UMK). Third, a pathway is opened for the Halal Product Fatwa Committee.

All three should be read as a single package. Simplification of the process does not remove the obligation to meet halal criteria. Self-declare is not a shortcut without evidence. And the presence of the Halal Product Fatwa Committee confirms that the determination of halal status remains in the realm of fatwa, not in the realm of administration.

Consequences for UMK

The self-declare scheme opens a halal declaration pathway for UMK. For micro and small enterprises, this means there is a more concise pathway compared with regular certification. However, there are inherent conditions: the product must be low-risk and the business actor must be able to declare that the ingredients and process meet the requirements.

In practice, the ability to declare this depends on documents. Business actors need to know the origin of ingredients, especially for ingredients whose halal status depends on the source. An example is yeast, which is generally halal but whose growth medium needs to be checked. Another example is amino acids such as L-Arginine, which can come from microbial fermentation or animal extraction. Flavorings are also among ingredients whose solvents are often alcohol and whose base may be animal-derived.

A more concise pathway does not eliminate the need for traceability. In fact, it is on this pathway that business actors are required to understand the critical points in the ingredients they use daily.

Consequences for medium and large businesses

For medium and large businesses, simplification of the certification process means clearer stages. However, attention must still be paid to compliance with the halal product assurance system and the readiness of ingredient documents. Clarifying agents such as isinglass, which comes from fish swim bladders, are an example of an ingredient whose origin needs to be traced. Plant-based alternatives such as bentonite or carrageenan can be considered for non-alcoholic beverage products.

A change in the legal basis also means business actors need to ensure their internal references are up to date. Implementing regulations continue to be adjusted. PP 42/2024 on the Implementation of Halal Product Assurance replaces PP 39/2021 and regulates the procedures for establishment, accreditation, scope of activities, and revocation of LPH (Halal Inspection Agency) approval, including the appointment and dismissal of Halal Auditors. At the service level, BPJPH (Halal Product Assurance Agency) Head Decision Number 243 of 2025 sets out 27 types of BPJPH services complete with requirements, timeframes, and tariffs, and revokes Kepka 120/2022. For LPH accreditation, BPJPH Head Decision Number 78 of 2025 serves as the complete guideline referring to SNI ISO/IEC 17065:2012.

What needs to be prepared

The practical consequences can be summarized in several steps.

• Ensure the certification pathway matches the scale of the business. UMK can consider the self-declare scheme if they meet the requirements, while other businesses follow the regular pathway.
• Compile a list of ingredients along with their origins. For ingredients whose status depends on the source, provide supporting documents from suppliers.
• Check the conformity of the regulatory references used internally. Changes such as Law 6/2023, PP 42/2024, and the applicable BPJPH head decisions need to be reflected in procedures.
• Understand the division of authority. The determination of halal status is the authority of the MUI (Indonesian Ulema Council) Fatwa Commission or the Halal Product Fatwa Committee, while halal certificates are only issued by BPJPH. Business actors do not determine the halal status of their own products.

What does not change

Amid regulatory changes, one thing remains: a halal certificate is not automatically obtained just because the process is simplified. Products must still meet halal criteria, and the determination of halal status remains the authority of the fatwa institution. Business actors play a role in preparing evidence and systems, not in determining status.

Reading Law 6/2023 correctly means understanding that simplification of the process demands more orderly document readiness, not looser readiness. For businesses, the practical value lies in the clarity of the pathway and the orderliness of evidence.

To map the readiness of the halal product assurance system, including ingredient registries and critical points, IndoHalal.id provides an SJPH (Halal Product Assurance System) platform that helps manage halal criteria in a single application.