Halal Certification for Exports to Indonesia!
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Why Consider Halal Certification for Exports to Indonesia?
1. Legal Requirements
1Indonesia has implemented stringent halal certification requirements, requiring all import products to have a halal certification from a body accredited by the BPJPH (i.e: AHF). Therefore, halal certification is now mandatory for compliance to avoid rejection of products at customs.
2. Market Access and Competitiveness
3. Consumer Trust and Brand Reputation
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Indonesian Market Synopsis
Do You Know: Indonesia has over 180 million halal consumers? Nearly 20% of the global halal market is concentrated in a single country!
This does not include further processed ingredients, raw materials, or chemicals which are essential to the nearly 1.5 million food production companies domiciled in Indonesia.
Therefore, there is a significant opportunity for global F&B companies to enter this market by obtaining halal certification.
Market Opportunities
AHF believes that there are considerable opportunities for US based companies to export to Indonesia specifically in the following verticals.
1. Beef Exports
Indonesia is relatively reliant on imports to meet its rising beef consumption demand. US beef exports have been steadily increasing over the past decade to Indonesia.
While due to the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), US exporters face strong competition from Australian and New Zealand producers, AHF believes that there is still an untapped market in the higher end segments of the market due to local supply constraints in Australia and New Zealand.
2. Functional Ingredients
As consumer purchasing behavior gradually shifts to frozen ready to eat meals the demand from local manufacturers for functional ingredients is increasing.
US exporters seeking this market may find untapped niche markets with R&D teams with the nations leading manufacturers which will eventually enable the functional ingredients to become mainstream.
Additionally, there is also demand for functional ingredients from the rising CPG brands that Indonesian consumers are increasingly adopting.
3. Cosmetics
The cosmetics industry in Indonesia is rapidly growing due to a burgeoning middle class. US brands have increased market value due to the robust quality and regulatory infrastructure established by manufacturers.
Specifically, AHF believes that niche brands that are vegan and are formulated with clean ingredients will perform exceptionally well. AHF also believes contract manufacturers may find significant opportunity for white labelled product lines with local companies.
Key Regulatory Authority in Indonesia – BPJPH
The Badan Penyelenggara Jaminan Produk Halal (Halal Product Assurance Organizing Agency), most commonly referred to as BPJPH, was established by the Federal government of Indonesia in 2017 to carry out the operations and activities as they pertain to the enactment of the 2014 Halal Product Assurance Law #33.
Some of BPJPH’s functions include:
- Process halal applications locally
- Conduct halal certification audits locally
- Conduct testing on products for compliance with halal standards.
- Enforce Halal Product Assurance standards in the market
- Regulate halal label claims
- Conduct public education
- Interface with the World Trade
- Organization and other international organizations related to trade
- Recognize “Foreign Halal
- Certification Bodies” (FHCBs)
- Cooperate with “Foreign Halal
- Certification Bodies” to ensure compliance of imported products with international halal standards
Key Regulations from the Halal Product Assurance Law
Products in the following categories shall be required to have halal certification to be imported (source: trade.gov):
| Category | Items |
| Food and Beverages | – Milk and its derivatives – Fats, oils, and oil emulsions – Ice cream for eating, including sherbet and sorbet – Fruit and vegetables with treatment – Confectionery candy and chocolate – Cereals and cereal products (derivatives of cereal seeds, roots and tubers, nuts, and pith) – Bakery products – Meat and processed meat – Fish and fishery products, including mollusks, crustaceans, and echinoderms – Eggs and egg products – Sugar and sweeteners, including honey – Salt, spices, soups, sauces, salads, and protein products – Processed food for particular nutritional needs – Beverages – Ready-to-eat snacks – Ready-to-eat foods – Served food and drinks – Food additives |
| Pharmaceuticals and Medicines | – Traditional medicines – Health supplements – Quasi-drugs – Unrestricted drugs (all drugs marked in green with a black outline under Indonesian medicine labeling requirements) – Unrestricted over-the-counter drugs (all drugs marked in blue with a black outline under Indonesian medicine labeling requirements) – Strictly regulated narcotics and psychotropic substances (all medicines specially marked on the package and labeled with the letter “k” in a red circle and a black outline under Indonesian medicine labeling requirements) – Medicinal ingredients |
| Cosmetics | – Cosmetics – Cosmetic ingredients |
| Chemical Products | – Other chemical products – Biological products – Genetically modified products |
| Clothing and Accessories | – Clothing – Headgear – Accessories |
| Household Products | – Household health & personal care supplies – Household equipment – Equipment of worship for Muslims – Product packaging – Stationery and office supplies |
| Medical Devices | – Medical devices, including equipment for clinical chemistry and toxicology, hematology and pathology, immunology and microbiology, anesthesia, cardiology, dentistry, otolaryngology (ear, nose, and throat), urological gastroenterology, neurology, obstetrics and gynecology, ophthalmology, orthopedics, physical therapy, radiology, general surgery and plastic surgery, and other medical devices originating from or containing animal elements |
| Services | – Meatpacking (butcher/slaughter) services – Processing services – Storage services – Packaging services – Distribution services – Sales services without cooking or processing – Services without cooking processing |
| Other | – Auxiliary material group – Other material groups |
- The products mentioned above should be produced in a method that avoids contamination with non-halal (haram) materials.
- Producers of non-halal products in the country must declare the non-halal status of their products.
- Raw materials or halal-certified products must be compliant or certified in accordance with international halal standards.
- Meat and poultry slaughter must be supervised by a recognized halal certification body and conducted in accordance with international halal standards.
- The halal requirements will go into force for food and beverage products by October 2024, and between 2026 and 2034 for other product categories.
- MUI will continue its function as the lead religious authority responsible for issuing legal verdicts Fatwa
Read More: The Complete Indonesia Halal Certification Guide for Exports [Updated 2024]
3- Step Halal Certification Process at AHF
The American Halal Foundation (AHF) will process your application with no cost.
1 |
Application |
| The American Halal Foundation (AHF) will process your application. Your designated account executive will guide you through the application process to determine the halal status of the facility and its products. | |
 5-7 Business Days |
|
2 |
Audit |
| Your Account Executive will schedule a halal audit on a mutually convenient day. The audit typically lasts 4 hours and includes a training session for the employees who will be responsible for overseeing the halal production. | |
| 1 Day |
|
3 |
Certification |
|
🎉 Congratulations Upon the successful completion of the halal audit, your products and facility are now officially certified as halal and recognized as such internationally. Your products will bear the most recognized symbol of integrity, authenticity, and wholesomeness in the world. You may add products or facilities at any time by simply contacting your Account Executive. |
|
| 48 hours from the successful completion of the audit process. |
|
Testimonials
FAQ
What products require halal certification for export to Indonesia?
In Indonesia, halal certification is now required for all food and beverage products, pharmaceuticals, cosmetics, and other consumable goods. However, it’s advisable to check specific product categories and industry regulations with an AHF consultant.
How long does the halal certification process take?
What are the key steps involved in obtaining halal certification for exports to Indonesia?
The key steps include filling the halal application, submitting the necessary documentation (including product ingredients and manufacturing processes), undergoing an audit of your facilities and processes, and finally, receiving the certification if all standards are met.
What documents are required for halal certification?
What happens if my product doesn’t meet the halal standards?
Apply Halal Certification for Indonesia Today!
The opportunity to acquire halal certification for Indonesia to gain a competitive edge over your competitors is shortening as more businesses now realize its significance.
The investment in halal certification for your product line or facility is very minimal compared to the substantial returns you can achieve through it. Calculate your ROI from halal certification here!
Interested in applying halal certification for exports to Indonesia? Get in touch by simply calling us at +1 (630) 759-4981 or completing the form below. Our experts will get back to you with a customized proposal, quotation, and blueprint within 24-hours!
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