INDONESIA Trends and Developments Contributed by: Vovo Iswanto, Albert Boy Situmorang, Wisnu Wardhana and Ingrid Gratsya Zega, Assegaf Hamzah & Partners
Assurance Organizing Agency ( Badan Penyelenggara Jaminan Produk Halal or BPJPH), storage, packaging, and distribution service providers are also required to obtain halal certification, in accordance with the imple - mentation timeline for the relevant product category. For example, logistics operators handling products subject to mandatory halal certification are expected to implement a halal assurance system, including seg - regation of halal and non-halal goods, contamination controls, and documented handling procedures. Mutual recognition agreements ( MRAs ) and cross - border trade The mandatory halal certification obligation extends to foreign products imported into Indonesia, with the implementation timeline depending on the relevant product category. Where a product has been certi - fied halal by a foreign halal certification body that has an MRA with BPJPH, the product may be marketed in Indonesia by registering the foreign halal certificate with BPJPH, without undergoing the full domestic cer - tification process. In practice, halal certificates issued by accredited foreign bodies are recognised for the relevant product scope under the applicable MRA. This mechanism is intended to facilitate cross-border trade, reduce duplicative certification, and streamline market access for imports. As at the date of writing, BPJPH has entered into 109 MRAs with foreign halal certification bodies from 39 countries, and the number of recognised MRAs continues to grow. However, recognition of a foreign halal body does not amount to blanket acceptance of all products it certifies; businesses must ensure that the relevant product category falls within the scope of the applicable MRA and that all administrative requirements are fulfilled. Imported products certi - fied by bodies that do not have MRAs with BPJPH, or products not yet certified by any halal certification body, must undergo the standard domestic certifica - tion process. Importer registration obligations Under the regulations, the importer (or its authorised representative in Indonesia) is responsible for regis - tering foreign halal certificates with BPJPH where the certificates are issued by foreign certification bodies with MRAs with BPJPH. Legal responsibility is there -
fore borne by the importer. Where multiple importers or authorised representatives exist for a single prod - uct, each must register separately, even where the same foreign producer and product are involved. Reg - istrations are not freely transferable between import - ers or authorised representatives, to facilitate tracking and to identify the responsible party if issues relating to halal status arise. Obligations for non - halal products The regulations also recognise an exception for products derived from non-halal materials. Rather than requiring halal certification, producers of such products must affix a non-halal label that is clearly visible and readable and not easily removed or dam- aged. Detailed technical requirements on the label’s format, placement, and appearance are expected to be set out in further implementing regulations issued by BPJPH in coordination with relevant ministries or institutions. Enforcement and sanctions Non-compliance with halal product assurance require - ments may expose businesses to administrative sanctions, including written warnings, monetary pen - alties, suspension or revocation of halal certificates, and mandatory product withdrawal. Sanctions may be imposed not only for failure to obtain halal certi - fication, but also for failure to apply non-halal label - ling (where required), and for failure to maintain halal assurance requirements after certification. Enforcement trends indicate growing coordination between BPJPH and other regulatory authorities. In particular, BPJPH has strengthened cooperation with the Food and Drug Agency ( Badan Pengawas Obat dan Makanan or BPOM), which supervises the safety, quality, and efficacy of food, drugs, cosmet - ics, and health products in Indonesia. In a recent joint supervision and market monitoring exercise, several halal-certified products were found to contain non- halal ingredients. BPJPH and BPOM ordered their withdrawal from the market, and BPJPH revoked the relevant halal certificates. This underscores two points: halal certification does not eliminate the need for post-market supervision, and businesses remain responsible for ongoing compliance with declared product composition.
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