HALAL REGULATORY FRAMEWORK IN INDONESIA

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Allen Sutton
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1 HALAL REGULATORY FRAMEWORK IN INDONESIA Vitto Rafael Tahar Minister Counsellor for Economic Affairs 02/06/ :48 1

2 Introduction - Halal Market in Indonesia Largest Muslim population in the World: around 88% of 255 million citizens are Muslim Halal food market estimated around USD 10 billion/year with annual growth of 7-10% Halal food expenditure estimated over USD 70 billion 02/06/ :48 2

3 Background To ensure the freedom of religion of the Muslim community in Indonesia to practice the faith and believe, including consuming a halal product. To address the concern of Muslim community on some cases in the 1980s on the use of non-halal material in the food product 02/06/ :48 3

4 Early Stages 1989 The Council of Indonesian Ulama (Majelis Ulama Indonesia MUI) established the Lembaga Pengkajian Pangan, Obat-obatan dan Kosmetika (LPPOM), an agency that conducted an examination on the substance of food, medicine, and cosmetic products. 02/06/ :48 4

5 Early Stages The MUI issued a fatwa (legal opinion) on halal status of a product based on the result of examination by LPPOM. Case by case basis, based on report on a product Voluntary 02/06/ :48 5

6 Halal Certification 1994 Memorandum of Understanding: Ministry of Religious Affairs, Ministry of Health, and The Council of Indonesian Ulama (Majelis Ulama Indonesia/MUI) The MoU Appointed MUI as the authority to issue halal certificate of a product. 02/06/ :48 6

7 Halal Certification The LPPOM acts as the implementing body to examine and verify the halal status of a product. The Halal Certificate will be valid for 2 years and needs to be renewed accordingly. The Halal Label will be issued by the MUI upon the issuance of Halal Certificate 02/06/ :48 7

8 Development of the Legal Framework The Ministry of Religious Affairs further issued two Minister of Religious Affairs Decrees to cement the halal certification procedure (No.518/2001) and appointment of MUI as the halal certification agency (No.519/2002). Several Governmental Ministries/Agencies enacted laws and regulations that required for food and medicine related products to attach halal label: Law No.8/1999 on Consumer Protection Government Regulation No.69/1999 on Label and Food Advertisment Law No.18/2009 on Farm and Animal Health Law No.36/2009 on Health Law No.18/2012 on Food 02/06/ :48 8

Implementation of MUI Certification Halal certificate issued in 2010-2015: 309.

9 Implementation of MUI Certification Halal certificate issued in : Number of Slaughter Houses Number of Products Number of Companies 02/06/ :48 9

10 Implementation of MUI Certification Top 10 products with MUI Halal Certificate 02/06/ :48 10

11 Recognition of Foreign Halal Certification Bodies MUI issues an approval to foreign halal certification body based on request 37 Halal Certifier Bodies are approved by MUI from 21 countries. The halal ceritificate issued by the approved foreign halal certification body will be recognized by MUI The approval is valid for 2 years and needs to be renewed accordingly 02/06/ :48 11

12 Recognition of Foreign Halal Certification Bodies Two bodies from the UK that is approved by MUI are Halal Certification Europe (HCE) and Halal Food Authority (HFA) UK The recognition is only granted for product produced in the country where the halal certification body located. In exception, product produced in Europe can use halal certificate by any approved halal certification body located in Europe. 02/06/ :48 12

13 Challenge in Implementation Voluntary in nature Out of registered products in National Agency of Drug and Food Control in 2016, only have halal certificate (48%). Laws and regulations on halal certificate and label are deemed partial and sector-based. No single law on halal certification encompasses all sectors. 02/06/ :48 13

14 Current Development: Law No.33/2014 The Government of Indonesia has enacted Law No.33/2014 on Halal Product Assurance on 17 October The Law regulates the halal certification as mandatory to food, beverage, medicine, cosmetics, chemical products, biological products, and products of genetic engineering starting from 2019 (5 years after the enactment of the Law Transition Period). 02/06/ :48 14

15 Current Development: Law No.33/2014 The Halal Certification will be issued by the National Agency on Halal Product Assurance (Badan Pengelola Jaminan Produk Halal/BPJPH) under the Ministry of Religious Affairs. The process of Halal Certification is as follows: The Halal Audit Institutions (Lembaga Pemeriksa Halal/LPH) appointed by the BPJPH will audit/examine the product The MUI will verify the product and issue a Halal Fatwa The BPJPH will issue the Halal Certificate and Halal Label 02/06/ :48 15

16 Current Development: Law No.33/2014 The Halal Certificate will be valid for 4 years and needs to be renewed accordingly. The Halal Certificate issued by foreign halal certification body could be registered under a mutual recognition cooperation scheme 02/06/ :48 16

17 Current Development: Law No.33/2014 During the transition period ( ), the process in obtaining halal certification will follow the existing practice through the MUI. The Halal Ceritificate issued by the MUI will still be valid. The Law regulates criminal sanction for noncompliance to the regulation starting from /06/ :48 17

18 Progress on the Implementation of Law No.33/2014 The establishment of the BPJPH is still in process. The Government has issued Presidential Regulation No.83/2015 and Minister of Religious Affairs Regulation No.42/2016 to establish the BPJPH under the Ministry of Religious Affairs. The Government is still finalizing the Government Regulation and other related regulations on the implementation of the Law No.33/2014 The full implementation of the law is targeted in /06/ :48 18

19 TERIMA KASIH BANYAK THANK YOU 02/06/ :48 19

CHALLENGE FOR HALAL CERTIFICATION- ISSUING BODY IN THE ASEAN FREE TRADE MARKET P R O F. H E R I H E R M A N S YA H

2 CHALLENGE FOR HALAL CERTIFICATION- ISSUING BODY IN THE ASEAN FREE TRADE P R O F. H E R I H E R M A N S YA H ASSOCIATION OF INDONESIAN ALUMNI FROM JAPAN (PERSADA) MARKET Halal Policy and Certification