Thai exporters urged to apply for Indonesia’s new halal certification
Obtaining the new certification, which becomes obligatory next month and covers everything from food to chemicals, could boost trade
Indonesia is to introduce a halal certification obligation on October 18, obliging all importers of foodstuffs to indicate if these are halal or non-halal, the Halal product Guarantee Organising agency (BPJPH) of the Indonesian Religious Affairs Ministry announced this week.
The BPJPH was established under Indonesian Law No. 33/2014 on Halal Product Assurance. The law mandates the halal certification of various products such as food, beverages, medicines, cosmetics and chemicals. It covers the entire production process, from manufacturing and storage to packaging and sales.
The obligation requires products entering, circulating, and being traded in Indonesia to be accompanied by a halal certificate. Products containing prohibited ingredients or haram (liquor or food made from pork) must display non-halal remarks.
Products from foreign countries, even with the halal label from their countries of origin, will also be shown as non-halal products should they not display evidence of the certification. A non-halal sticker will be placed on top of the country’s halal label and this could lessen the competitive ability of the products in Indonesia according to ThaiBizIndonesia information centre.
Linda Trianita, editor at renowned Indonesia weekly magazine Tempo, believes that halal certification will influence the Indonesian people's intention to buy products or choose a restaurant.
“Muslims pay attention to the halal logo when buying food. Even small and medium businesses here are trying to get a halal logo to attract buyers,” she said.
“The most direct impact will be on restaurants, several of which don't have halal certification, leading to their authenticity being questioned on social media and then being ostracised,” she continued, adding that investigations have shown eateries paying bribes to get the requisite logo.
BPJPH is responsible for certifying and overseeing halal product certification. Together with the Indonesian Council of Ulama (MUI), BPJPH ensures that products comply with Islamic halal standards under Government Regulation (GR) 39/2021.
To obtain the Indonesian halal products label, a halal seal agreement between both countries must be made.
“Either ingredients or processed food [from Thailand] need to adjust to this new regulation. We have our own halal regulation but now we need to have an agreement with Indonesia so that halal food from Thailand can also be sold there,” said Rungphech Chitanuwat of Informa Markets, pointing out the importance of the Indonesia market, particularly given its lower age demographic. In addition, obtaining the halal label could increase food exports to the Middle East.
Foreign companies wishing to export halal products to Indonesia can now register through the Foreign Halal Certificate (SHLN) Registration menu on the Halal Information System (Sihalal) at ptsp.halal.go.id.
“This Foreign Halal Certificate registration will provide convenience for industrial activities and trade in halal products that have been certified halal through the Mutual Recognition Agreement with BPJPH,” BPJPH’s head Aqil Irham said earlier this year.
Delicious opportunities
The food industry in Indonesia is currently valued at US$280 billion and growing by 61.2 per cent annually. Bakery and cereal items, which like other sugary products, are popular with Indonesians, have a market value of $51.99 billion. Indonesia is also the biggest buyer of Thai sugar with 18.9% of Thai sugar exports going to its fellow ASEAN country.
In addition, Rungphech says, Indonesians view Thai food as being of high quality and will opt for Thai brands wherever possible.
