Halal, derived from Arabic, means “permissible” or “lawful” under Islamic law (Sharia). In contrast, anything forbidden by God is called haram.

In Indonesia, where Muslims account for approximately 90% of the population, knowledge of halal is indispensable when conducting business. Furthermore, if your business involves food, beverages, or pharmaceuticals, understanding halal certification is also essential.

This article provides an overview of halal and haram principles, with a focus on food regulations and the halal certification system in Indonesia.

Halal and Haram in Relation to Food

Originally, the concepts of halal and haram in Islam are not limited to ingredients or materials. They also encompass behaviors and actions. For example, lying, exposing skin (for women), idol worship, gambling, murder, and theft are considered haram.

In this section, we focus on food and pharmaceuticals. However, determining whether a product is halal involves more than just examining the ingredients.

Generally, anything “impure,” “offensive to human dignity,” or “harmful to health” is considered haram. Even if ingredients are halal, they may become haram if they come into contact with haram substances during manufacturing or distribution.

Haram Ingredients

Most commonly consumed foods—vegetables, fruits, grains, seafood, eggs, and milk—are halal. However, the following are considered haram:

• Dogs, pigs, and their derivatives
• Animals not slaughtered according to halal procedures
• Carrion (dead animals)
• Blood
• Toxic substances
• Alcohol

Additionally, additives and the production process are also critical. Obvious examples include ham, lard, and pork bone broth, but even seasonings and additives with pork-derived components are haram.

Livestock fed with haram substances or prepared using utensils shared with haram items also becomes haram. For example, chicken—normally halal—loses its status if cooked with the same oil or utensils used for pork.

Personal Discretion in Consumption

While Islamic law provides general guidelines for halal and haram, detailed rules are not always adapted to modern food technology or eating habits. Therefore, the decision of what to consume often depends on denomination, community, family, or individual discretion.

Items of questionable halal status—such as chicken with uncertain supply chain data or soy sauce with trace alcohol from fermentation—are called syubhat.

Some Muslims eat these unless clearly haram; others avoid anything doubtful. For Muslims, these decisions are based not on personal preference but on a covenant with Allah.

What Is Halal Certification?

Given the complexity of determining halal status, Muslims rely on halal certification marks as trusted indicators. Certified products assure consumers that ingredients and production methods comply with halal standards.

However, no single global standard exists. Over 300 halal certifying bodies worldwide apply different criteria. Therefore, products must generally be certified by authorities in the importing country.

Halal Certification in Indonesia

Three institutions oversee halal certification in Indonesia:

• BPJPH (Halal Product Assurance Organizing Agency) – Receives applications and issues certifications
• MUI (Indonesian Ulema Council) – Makes final religious judgments
• LPPOM MUI and other testing agencies – Conduct inspections for halal compliance

BPJPH – The Official Halal Certification Authority in Indonesia

Since 2019, BPJPH has taken over halal certification from MUI to improve government oversight. BPJPH certification carries international credibility as a government-issued document.

However, exporters from Japan face challenges such as:

• Strict standards and audit procedures
• Entire application and inspection process conducted in Indonesian

BPJPH appoints a testing agency (LPH) upon receiving an application. As of November 2022, 12 agencies are registered, including LPPOM MUI. Certificates are valid for 4 years if product composition remains unchanged.

References:
JETRO, Halal Japan Association, KOMPAS.com

Halal Certification Marks in Indonesia

Once certified, products must display the halal certification mark.

Following the transition from MUI to BPJPH, a new mark was introduced. However, a transition period allows the MUI mark to be used until February 2, 2026.

• Green (Left): MUI-issued mark
• Purple (Right): BPJPH-issued mark

Reference: REPUBLIKA.co.id

Mandatory Halal Labeling in Indonesia

As of November 2022, products can still be sold without halal certification. Although 90% of the population is Muslim, products like pork and alcohol are still available.

To regulate this, the Halal Product Assurance Law (JPH Law) was enacted in 2014. BPJPH was established in 2017, and the law took effect on October 17, 2019. A 2021 Presidential Regulation added specific implementation rules.

Mandatory Categories

Products:

• Food, beverages, pharmaceuticals, cosmetics, chemical and biological products, GMOs, and items that contact halal goods

Services:

• Slaughtering, processing, storage, packaging, sales, and food service

Compliance Deadlines

• By Oct 17, 2024: Food and beverages
• By Oct 17, 2026: Cosmetics, supplements, quasi-drugs, chemicals, apparel, stationery
• By Oct 17, 2029: OTC drugs
• By Oct 17, 2034: Prescription medicines

Non-halal items can still be sold if labeled as non-halal. Therefore, this is more of a mandatory halal standard enforcement than a labeling ban.

Currently, during the transition, it is still permissible to sell products without BPJPH certification. Older certificates remain valid until renewal, which must be processed through BPJPH.

Reference: Halal Japan Association

Halal Certification Standards in Indonesia

Indonesia uses the Halal Assurance System (HAS), approved by LPPOM MUI.

Producers in food, cosmetics, pharmaceuticals, and logistics must ensure that every part of their supply chain complies with HAS.

Key HAS Criteria

• Halal Policy: Written declaration of halal production
• Halal Team: Internal team for planning, execution, review
• Training: Required internal and external training
• Materials: Complying ingredients, additives, packaging, etc.
• Facilities: No contact with haram substances
• Products: No association with illegal, pornographic, or inappropriate packaging
• Documentation: Required for material or process changes
• Traceability: Ensure all materials meet standards
• Non-compliant Products: Disposal or recall process must be documented
• Internal Audit: At least twice a year
• Management Review: At least once a year

Reference: MUTU INSTITUTE

How to Apply for Halal Certification in Indonesia

Applications must be submitted to BPJPH. Until new regulations are enforced, certifications from Japanese organizations formerly aligned with LPPOM MUI are also accepted.

Recognized Japanese bodies:

• The Muslim Association of Japan
• Muslim Professional Japan Association
• Japan Halal Association

Application Steps

1. Submit application to BPJPH with necessary documents
2. Document screening (within 2 business days)
3. Inspection by appointed agency (online, within 15 business days)
4. MUI decision meeting (within 3 business days)
5. Certificate issuance by BPJPH (within 1 business day)

For exports from Japan, companies must first obtain the certificate and then complete documentation and BPOM registration.

References: Halal Japan Association, KOMPAS.com

Cost of Halal Certification

Based on November 2022 exchange rate: 1 IDR = 0.0090 JPY

Certificate Issuance Fees

Entity Type	New	Renewal
Micro/Small	IDR 300,000 (JPY 2,700)	IDR 200,000 (JPY 1,800)
Medium	IDR 5,000,000 (JPY 45,000)	IDR 2,400,000 (JPY 21,600)
Large/Foreign	IDR 12,500,000 (JPY 112,500)	IDR 5,000,000 (JPY 45,000)

Overseas certification registration:
IDR 800,000 (JPY 7,200)
Self-declared micro/small business applications are free.

Inspection Fees (Selected Examples)

Product Type	IDR	JPY (Approx.)
Pharmaceuticals, Cosmetics	5,900,000	53,100
Positive list/simple process	3,000,000	27,000
Packaging	3,937,000	34,500
GMO Products	5,412,500	48,700
Services	5,275,000	47,500
Restaurants	3,687,000	33,200
Vaccines	21,125,000	190,100
Slaughterhouses	3,937,000	35,400
Additives/Flavorings	7,652,500	68,900
Chemicals/Microbials	6,468,750	58,200
Gelatin	7,912,000	71,200

Reference: KOMPAS.com

---

Company Formation in Indonesia

Halal Considerations Beyond the Food and Beverage Industry

Halal certification extends to non-food sectors such as packaging, clothing, and stationery. These too must comply with halal requirements in materials and production.

One area facing upcoming mandatory compliance is distribution. Due to challenges in segregating goods, only a few Japanese logistics companies are certified.

Nippon Express pioneered halal logistics in Japan, gaining certification in Malaysia (2014), Japan (2016), and Indonesia (2018). It now handles halal-compliant import/export, storage, and domestic distribution.

Reference: Nippon Express

---

If you have any questions or concerns after reading this article, please ask them below.
We will respond within a couple of days.

In Indonesia, Halal Is the Norm

In Muslim-majority regions of Indonesia, halal certification is so standard that products often display it by default. It is deeply embedded in daily life.

For Japanese companies, halal knowledge and certification readiness are essential. It is equally important to train relevant staff and appoint local liaison personnel.

As Indonesia transitions to a new certification system, staying informed about regulatory changes is critical.