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INDONESIA: F&B Sector Begins Five-Year Transition to Mandatory Halal Certification

Food and beverage (F&B) businesses now have until 17 October 2024 to all ensure all their products and services comply with the country’s  mandatory halal labelling requirement. Within this period, operators will have to ensure they have in place certification that declares all the items they have on offer, as well as all related import, manufacture, distribution and retail procedures, are halal-compliant. Although committed to supporting businesses as they complete the certification process, the government has emphasised that the 2024 introduction of the requirement will be rigorously enforced.

Despite the five-year transition period, some of the country’s F&B businesses have expressed concerns about the lack of clear halal guidelines for factories and other facilities, while also seeing the Rupiah 7 million (US$499) certification cost as prohibitive. As well as the costs involved, the process is also seen as somewhat lengthy, with approval required by three separate bodies – the Halal Inspection Agency (Lembaga Pemeriksa Halal or LPH), the Indonesian Ulema Council (Majelis Ulama Indonesia or MUI) and the Halal Product Guarantee Agency (Badan Penyelenggara Jaminan Produk Halal or BPJPH).

The halal label requirement is part of a rolling process that will ultimately be phased in across every sector, with the next interim tranche scheduled to commence on 17 October 2021. The move is seen as part of the country’s bid to become a global hub for halal products, while also coming in response to demands by domestic consumers.

Content provided by Picture: HKTDC Research
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