Jakarta — The government decided to postpone the implementation of the halal certification obligation for food and beverage products for Micro and Small Enterprises (MSEs), from October 18, 2024 to October 2026. President Joko Widodo decided this in a closed meeting attended by a number of “Kabinet Indonesia Maju” Ministers on May 15, 2024 at the Presidential Palace, Jakarta.

“The policy of postponing the obligation to certify halal food and beverage products for MSEs is a form of the government's concern for MSE actors. Along this postponement, MSEs are given the opportunity to administer a Business Identification Number (Nomor Induk Berusaha or abbreviated as NIB) and apply for halal certification up to October 2026,” said the Minister of Religious Affairs in Jakarta, Yaqut Cholil Qoumas, on Thursday (16/5/2024).

”This decision is also to protect business actors, especially MSEs, from legal problems or administrative sanctions," he continued.

As for other than MSE products that are categorized as self-declare, for example medium and large business products, according to the Minister of Religious Affairs, the halal certification obligation will still be enforced starting from October, 2024.

The obligation for halal certification is regulated in Government Regulation (Peraturan Pemerintah/PP) No. 39 of 2021 concerning the Implementation of Halal Product Assurance. Article 140 of this regulation stipulates that the stages of the obligation of the halal certification for food products, beverages, slaughter products and slaughter services starts from 17 October 2019 to 17 October 2024.

Chairman of the Halal Product Assurance Organizing Body (BPJPH) of the the Ministry of Religious Affairs, Muhammad Aqil Irham said, along with the postponement of the halal certification obligation for MSE products up to October 2026, BPJPH would immediately discuss technical matters with the relevant ministries, including: Coordinating Ministry of Economy, Cabinet Secretariat, Ministry of Cooperatives and MSEs, and others.

"We will discuss and prepare the legal framework together," said Aqil Irham.

"The postponement of the halal certification obligation also provides time for the government to intensify synergy and collaboration between ministries, institutions, local governments (Pemda) and related stakeholders to facilitate for halal certification financing, data collection, integrated services, also halal certification guidance and education,” he continued.

According to Aqil, the government also needs to prepare sufficient budgeting for facilitating halal certification of MSEs through the self-declare program. This is because BPJPH has experienced budget constraints for financing the facilitation of halal self-declare certification for MSEs. Annually, BPJPH can only finance 1 million halal certificates for MSEs.

"We really feel this limitation, especially in 2023 and 2024, where quotas are always exceeded due to the enthusiasm of business actors, especially MSEs, to get free halal certificates,” Said Aqil.

BPJPH will use the period of postponement of the obligation to continue to socialize, educate, and strengthen literacy and publication of the halal certification obligations. This is expected to increase awareness of MSEs on the importance of halal certification.

The government has so far provided many conveniences for business actors in processing halal certification. For example, the cheap halal certification service tariffs , facilitation for free charge halal certification for MSEs, better authority structuring, faster service processes through digitization of halal certification services, and the SLA cuts from 90 days to 21 days.

The government has also built a halal ecosystem, including by increasing the number of Halal Inspection Agency (LPH) from 1 to 72 LPHs and establishing 17 Halal Product Assurance Training Institutes spread throughout Indonesia. In addition, currently there are 248 Halal Product Process Assistance Agencies (LP3H). Strengthening human resources also continues to be carried out by training 94,711 Halal Product Process Assistants (P3H), 1,220 Halal Auditors at 72 LPHs, and 7,878 Halal Internal Supervisors.