HALAL INDUSTRY, REGULATION

AND POLICY IN INDONESIA

Prof. Ir. Sukoso, M.Sc, Ph.D

Head of Halal Product Assurance Body (BPJPH)
 BACKGROUND
• 1988, Prof. Dr. Tri Susanto, M.App.Sc (University of Brawijaya) found derivate
products from pig such as gelatin, lard in food and beverages, 20-30% sale
product decreased.
• 1989: Indonesia Ulama Council (Majelis Ulama Indonesia/MUI) solve the
problem by established Institute for halal food and drugs/LPPOM-MUI).
• 1989: Halal certification become Voluntary.
• 2001: Ajinomoto Scandal.
• 2014: 17th October, Law No 33/2014 release about Halal Product Assurance.
• 2019: Government Regulation No 31/2019 release, following with Ministerial
Regulation No. 26/2019 .
• 2019: 17 Oct, Mandatory for Halal Certification (Article 4, Law No 33/2014).
2

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 THE INDONESIAN CONCERN OF
HALAL
1. Halal
Halal Product Assurance Body (BPJPH)
Law No. 33/2014 about Halal Product Assurance
Gov. Regulation No. 31/2019 about The Implementation Halal Product Assurance
Ministry of Religious Regulation No. 26/2019 about Implementation Halal Product Assurance

2. Thoyyibah
Indonesia National Agency of Drug and Food Control (B-POM)
BPOM Decree No. 26/2017

3. Sharia Finance
Indonesia National Islamic Finance Committee (KNKS)
Law No. 21/2008
3

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 LEGAL FUNDAMENT
A. The 1945 State Constitution of the Republic of Indonesia (UUD 1945)
B. Law No. 33 / 2014 about Halal Product Assurance (October 17, 2014)
C. Goverment Regulation (PP) No. 31 / 2019 about The Implementation
Rules of UU No. 33 / 2014
D. Ministerial of Regulation (PMA) No. 26 / 2019 about Implementation
Halal Product Assurance and Minister of Finance Regulation (PMK).
E. Regulation of Head of BPJPH

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 BPJPH ACHIEVMENT ON 2018-2019
1. Gov. Regulation No. 31/2019 about The Implementation Halal Product Assurance
2. Ministry of Finance Decree No. 3/KMK.05/2019 on 2nd of Januariy2019 about The BPJPH Status of
Public Service Agency (BLU)
3. Ministry of Religious Regulation No. 26/2019 about Implementation Halal Product Assurance
4. The Training of Candidate Halal Auditors has reached 180 peoples and ready to Competency Test.
5. The Candidate of Halal Inspection Agency is about 60
(MoU with Public University and Islamic Foundation is about 70 MoU’s per October 2019)
6. Others support from the related of Ministry and Institution.
7. Constitutional Court of Indonesia Decree after being sued 3 times also issued 2 Constitutional Court
Decree :
a. No. 8/PUU-XVII/2019 on 18th of February 2019
b. No. 49/PUU-XVII/2019 on 25th of September 2019
8. Ministry of Manpower Decree No. 266 Tahun 2019 About SKKNI of Halal Auditors.
5

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 MINISTRY OF RELIGIOUS AFFAIR
REPUBLIC OF INDONESIA

Halal Product Directorate General of

Assurance Body Directorate General of
Islamic Community etc.
Islamic Education
ORGANIZATION (GENERAL DIRECTOR) Guidance

STRUCTURE
Secretary Departement
MINISTRY OF (SECRETARY)
Echelon 2 Echelon 2 Echelon 2
RELIGIOUS AFFAIR
REPUBLIC OF Registration and
Certification
INDONESIA (DIRECTOR)

Guidance and
Supervision
(DIRECTOR)

Cooperation and
Standard
(DIRECTOR)

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 Head of HAPAS-B
( Prof. Ir. SUKOSO. M.Sc. Ph.D )

Secretary Registration and Guidance and Cooperation and

Departement Certification Supervision Standard
Ministry of Religion (SECRETARY) (DIRECTOR) (DIRECTOR) (DIRECTOR)
Affair (MORA)
Number 42, Guidance for Auditor
Year 2016, Planning and IT Registration
and Stakeholder
Cooperation

Concerning
Organization
Sturcture of Financial Certification Supervision Product Standard

HAPAS-B
Organization, Staffing,
Verification
and Law

Note: HAPAS-B in managing the finance uses Finance Management of Public Service
Agency (BLU) (Law 33 / 2014 Article 45) 7

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 BPJPH AUTHORITY
(LAW NO. 33/2014 ARTICLE 6)
1. Formulate and stipulate Halal Product Assurance (HPA) policy.
2. Stipulate the norms, standard, procedure, and criteria of HPA.
3. Issue and revoke Halal Certificate and Halal Label on Product.
4. Perform registration of Halal Certificate on foreign Product.
5. Socialize, educate, and publicize Halal Product.
6. Perform accreditation of Halal Inspection Agency (HIA).
7. Certificate Halal Auditor.
8. Control of HPA.
9. Develop Halal Auditor.
10. Collaborate with domestic and foreign institutions in organizing HPA.
8

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 LAW NO. 33/2014
• Article 1
Product are goods and/or services that are related to food, beverage, drug,
cosmetic, chemicals product, biological product, genetically engineered product,
as well as consumer good that are worn, used, or utilized by the public .
• Article 4
Products that enter, circulate, and are traded in the territory of Indonesia must
be halal-certified.
• Article 26
1.Business Operators that produce Product from Material that comes from
haram Material as intended in Article 18 and Article 20 are excluded from
submitting Halal Certificate application.
2.Business Operators as intended in paragraph (1) must attach non-halal
information on the product.
9

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 LAW NO. 33/2014 (ARTICLE 1)
Definition:
• Product are goods and/or services that are related to food, beverage, drug,
cosmetic, chemicals product, biological product, genetically engineered product,
as well as consumer good that are worn, used, or utilized by the public.
• Halal product is the product that has been declared halal lawful according to
Islamic shariah.
• Halal Product Process (HPP) is a series of activity to assure the halalness of the
product including material procurement, process, storage, package, distribution,
sales and presentation of the product
• Material is Ingredients used to produce or manufacture the product.
10

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 GOODS AND SERVICES
Product is goods and/or services (Article 1 verse 2, Gov. Regulation 31/2019)

• Goods : food, beverage, medicine, cosmetic, chemical product, produk

biological product, genetical engineering product, and usefull goods that
be used or be functioned by people. (Article 1 verse 2, Gov. Regulation
31/2019)

• Services : Business that be related to goods and their chain.

(slaughtering, processing, storing, packaging, distributing, sale, and
serving). (Article 68 verse 3, Gov. Regulation 31/2019)
11

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 THE PRINCIPLE OF HALAL
CERTIFICATION
• Tracebility.
• Grey Area.
• Halal is clear.
• Haram is clear (Article 18 and 20 Law No. 33/2014).

12

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

NEW ERA OF HALAL CERTIFICATION PROCESS
HAPAS-B/BPJPH (MORA)

Halal Inspection Agency

(HIA) can be performed by
Government Institutions,
University or Islamic NGO

MUI HIA / LPH

Halal certification uses Traceability system and not "End Product Analysis." 13

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 UNIT THAT INVOLVED WITH HALAL
CERTIFICATION
A. BPJPH
Publish and revoke halal certificate
(Authority of Article 4 verse 3, Gov. Regulation 31/2019)
B. Halal Inspection Agency (LPH)
C. Indonesia Ulama Council (MUI) (Article 21, Gov. Regulation 31/2019)

14

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 HALAL CERTIFICATION PROCESS
Producer / Big Company:
Halal Quality Controller

Halal Certificate
MUI Halal Product Assurance Label / Logo Halal
(FATWA) Body (HAPAS-B / BPJPH) Valid 4 Years
(5 days) 7 days
30 days
10 days

Halal Inspection Agency (HIA) :

Halal Audit Institute
Laboratory
Source : Law No 33/2014 *days in working days 15

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 HALAL CERTIFICATION PROCESS FOR SME
HALAL CENTER
(giving guidance a
or assistance) SME
Halal Proper

Halal Product Assurance Body 7 days Halal Certificate

MUI
(FATWA) (HAPAS-B/BPJPH) Label / Logo Halal
(5 days) Valid 4 Years
30 days 10 days

Halal Inspection Agency (HIA)

Halal Audit Institute
Laboratory
*days in working days 16

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 GOVERNMENT REG NO. 31/2019
(ARTICLE 5)
1. BPJPH collaboration with relevant ministries as referred to in Article 4
paragraph (4) point (a) do according to the duties and functions of the related
ministries.
2. The related ministries as referred to in paragraph (1) the ministries of
implementation government affairs in
a. industry;
b. trade;
c. health;
d. agriculture;
e. cooperatives and small and medium enterprises;
f. international; and
g. others related to the implementation of HPA.
17

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 GOVERNMENT REG NO. 31/2019
(ARTICLE 6)
Cooperation within BPJPH and Ministry of Industrial:
• Regulation, guidance, and supervision of industry, related to raw materials,
processed materials, additives, and auxiliary materials used to produce
Halal Products;
• Halal facilitation for small industries and medium industries;
• Establishment of halal industrial estate; and
• Others.

18

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 GOVERNMENT REG NO. 31/2019
(ARTICLE 8)
BPJPH collaboration with the ministry in health sector as intended in Article
5 paragraph (2) point (c) includes;
a. control of Halal Certificates and Halal Labels for medical devices and
household health supplies;
b. facilitation of halal certification for medical devices and health supplies;
c. recommendation for revocation of Halal Certificate and Halal Label for
medical devices and health supplies; and
d. other tasks related to organizing JPH according to their respective
duties and functions.

19

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 THE THINGS THAT NEED TO BE
CONCERNED
1. Cost of Halal Certification (Article 61, Gov. Regulation 31/20199)
2. Phasing of product type that has Halal Certificate (Article 68, Gov.
Regulation 31/2019)
3. Controlling (Article 49, UU and article 75, Gov. Regulation 31/2019)
4. People as participants (Article 53 - 55, Law 33/2014)
5. Law of Criminal (Article 56, Law Law 33/2014).

20

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 INTERNATIONAL COOPERATION
• International cooperation of BPJPH with Halal Certification Body (HCB)
basically based on Government to Government (G to G cooperation)
• Government Regulation No. 31/2019, article 11:
BPJPH cooperation with Ministry of Foreign Affairs:
 Facilitate in international cooperation;
 Promotion of halal product in abroad;
 Provide of HCB’s information

21

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 INDONESIA’S HALAL STAKEHOLDERS
• BPJPH • Consumer
• MUI • Shari’a Industrial Finance
• Ministries and • Community/Islamic
institutions/central and local Organizations
government • Universities/Halal Centre
• Halal Inspection Agency (LPH) • Halal Certification Body (HCB)
• BSN/KAN • Others...
• Bussiness
operator/enterprises/SMES
22

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 THE STEP OF HALAL MANDATORY
• Food and beverages must be halal certified after the mandatory halal since
17th of October 2019.
• Except food and beverages product, the policy still on processing for
harmonized with policy of Ministry of Health and B-POM.
• The government helps the SME’s for 5 years to fulfill halal standards.
• The SME’s who fulfill the halal standards must obtain halal certified.

23

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 THE STEP OF HALAL MANDATORY
a) Product that has been certified until october 17, 2019. Its suggest to be
re-registered and only send the copy of certificate.
b) On october 17, 2019, the product that not certified yet and want to be
certified must be register to BPJPH for get halal certification with
standard and regulation according to BPJPH.
c) Re-Registration is to make easier for aplicant and for our data then we
will announce to the aplicant for renewal certification. (Law No. 33/2014
article 42 b).

24

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

 THE STEP OF HALAL MANDATORY BASED ON
MINISTRY OF RELIGIOUS AFFAIR REGULATION NO. 26/2019
FOOD AND Started since 17 Oct 2019
5 YEARS (until 17 Oct 2024)
BEVERAGES
NON MEDICINE, NON BIOLOGICAL
PRODUCT, NON MEDICAL DEVICES & 7 YEARS (until 17 Oct 2026)
NON HOUSEHOLD HEALTH SUPPLIES
TRADITIONAL MEDICINE 7 YEARS (until 17 Oct 2026)
PRODUCT

DIETARY SUPPLEMENT 7 YEARS (until 17 Oct 2026)

MEDICINE
Started since 17 Oct 2021

OVER THE COUNTER DRUG AND

10 YEARS (until 17 Oct 2029)
LIMITED FREE MEDICINE
PRESCRIPTION DRUG EXCEPTING
15 YEARS (until 17 Oct 2034)
PSCYCHOTROPIC DRUG
NON FOOD
AND BIOLOGICAL PRODUCT REGULATED AT
BEVERAGES (INCLUDING VACCINE) PRESIDENTIAL REGULATION

GRADE A RISK 7 YEARS (until 17 Oct 2026)

GRADE B RISK 10 YEARS (until 17 Oct 2029)

MEDICAL DEVICES
GRADE C RISK 15 YEARS (until 17 Oct 2034)

REGULATED AT
GRADE D RISK PRESIDENTIAL REGULATION

HOUSEHOLD HEALTH SUPPLIES 7 YEARS (until 17 Oct 2026) 25

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

VIEWING JAPAN'S EFFORTS TO ACHIEVE HALAL
TOURISM

26

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

VIEWING JAPAN'S EFFORTS TO ACHIEVE HALAL
TOURISM

27

BADAN PENYELENGGARA JAMINAN PRODUK HALAL

Badan Penyelenggara Jaminan Produk Halal
Kementerian Agama Republik Indonesia 28