Updates on The Halal Law: Wait & See
In 2014 the Indonesian government issued Law No. 33 of 2014 on Halal Product Assurance (Halal Law). The Halal Law requires all "products" that are imported, distributed and traded within the Indonesian territory to be halal certified (Halal Certification Requirement). The Halal Certification Requirement will only come into effect 5 years after the Halal Law is enacted (ie, 17 October 2019). Prior to that date, halal certification will be complied with by business actors on a 'voluntary' basis.
The Halal Law also requires a Halal Product Assurance Implementing Board (Badan Penyelenggara Jaminan Produk Halal or BPJPH), which is under the Ministry of Religious Affairs, to be established within three years after 17 October 2014 (ie, 17 October 2017). BPJPH has been officially established under the supervision of the Ministry of Religious Affairs (MORA). However, since the Halal Law is not effective yet, the Indonesian Ulema Council (Majelis Ulama Indonesia or MUI) still holds the authority to handle halal certification in Indonesia.
Many questions were raised by business actors on the implementation of this law. No implementing regulation has been issued until now. We hope that the implementing regulations would bring more clarity as to exactly how the Halal Certification Requirement and the other related provisions under the Halal Law will be implemented in practice. We set out below our update on the current situation of the Halal Certification Requirement in Indonesia based on the latest developments. But please note that this update is still subject to the implementing regulation.