News

Indonesia introduces new halal certification system

International food and beverage companies importing halal products into Indonesia need to adhere to new rules after the country introduced a new halal certification system.

Indonesia opened its new registration system in July. The halal product assurance organising body, Badan Penyelenggara Jaminan Produk Halal (BPJPH), is responsible for issuing certificates.

The news follows BPJPH’s 2023 announcement stating plans to implement new halal requirements for imported products entering the country.

Before entering the Indonesian food and beverage market, imported products must have obtained halal certification. These requirements align with Article 4 of Law No. 33 2014 concerning halal product assurance.

A new way to certify halal food and beverages

The new system, Foreign Halal Certificate (SHLN) registration, allows international companies to register halal certifications from their countries of origin.

Prior to the introduction of the SHLN, such companies were required to apply for halal certification in Indonesia. This resulted in delays in getting their products to market and, subsequently, restrictions on when and how they could sell their products to Indonesian consumers.

“Certainly, the SHLN will provide convenience for industrial activities and trade in halal products,” Annisa Syaharani, intellectual property and regulatory affairs co-ordinator at Tilleke and Gibbins, told Ingredients Network.

New system allows Indonesia to register foreign halal certificates

Indonesia’s new system allows BPJPH to register and acknowledge foreign halal certificates.

“Therefore, international companies do not need to apply [for] halal certification in Indonesia through BPJPH,” Syaharani said.

The system consists of four primary functions. Firstly, it is set up to enable brands to submit their application to register for foreign halal certificates. Next, it checks the completeness and validity of documents, and gives brands a mechanism to pay for overseas halal certificate registration fees. Finally, it allows Indonesian officials to issue foreign halal certificate registration numbers.

Prior to Indonesia introducing the SHLN system, international companies had to submit applications to BPJPH. With the new system, 37 Foreign Halal Certification Agencies (LHLNs) have collaborated with BPJPH to enable international companies from these countries to register their halal certificates.

Nine LHLNs signed mutual recognition agreements with BPJPH, expressing they mutually recognised and accepted halal certificates. In addition, 28 LHLNs signed other mutual recognition agreements with BPJPH agreeing to speed up their LHLN assessments to recognise and accept halal certificates.

Improving Indonesia’s food future

International companies can receive halal certification by submitting seven documents. These include an application letter for the SHLN, an appointment letter detailing the agreement from the home country company to carry out the application for the SHLN, and a business licence number from the importer and/or official representative in Indonesia, specifying the company’s specific details.

Regarding the nature of their halal products, international companies wishing to import into Indonesia must also submit a copy of the foreign halal certificate for products that will enter Indonesia’s excise or customs area. This must be authorised by the Indonesian representative abroad, in legislation signed by an authorised official.

“If the LHLN is in a member country of the apostille convention, then only an apostille certificate document is required,” Syaharani said.

The company must provide a document of co-operation stating that both the LHLN and BPJPH mutually recognise the halal certificates. Its list of goods due for importation into Indonesia then needs to be equipped with a harmonised system code (HS Code) number.

Finally, the company must provide a statement confirming the documents submitted are correct and valid.

Overcoming all entry barriers?

The new rules do not remove all the obstacles facing international companies planning to import food and beverage products into the Indonesian market.

“The SHLN only applies to halal certificates issued by a Foreign Halal Certification Agency (LHLN) which has collaborated on mutual recognition of halal certificates with BPJPH,” Syaharani said.

Information detailing the new certification system also suggests that it is not applicable to all products entering the Indonesian sector.

According to Article 127, paragraph 2 of Government Regulation No. 39 of 2021, certain products, such as raw materials, additives, processing aids, and slaughtered products, are still required to apply for halal certification in Indonesia – “meaning that the SHLN system is not applicable for those products,” Bella Nadhillah Rachmania, patent executive at Tilleke and Gibbins, told Ingredients Network.

“As the majority of Indonesia is Muslim, it is essential for the products circulated in the market to have halal certification,” added Rachmania.

BPJPH hopes that launching the new SHLN system will protect the Indonesian population’s public health.