The Indonesian government put into effect the most recent halal certification policies towards the end of last year. It mentioned that by a specific date, all food, drinks, medications, cosmetics, and goods or services pertaining to chemical, biological, or genetically modified items must be certified halal; if not, they will not obtain halal certification. The Indonesian government has, however, recently declared that some items would not be subject to the first required certification period and that the necessary halal certification time for certain products will be delayed.
The initial laws stipulated that all types of halal products had to progressively complete the statutory procedure of halal certification; the time frame for certification varied based on the sort of product. The halal certification process for food and beverage items, raw materials, food additives, accessories, and other products must be finished by October 17, 2024. The Indonesian government did, however, declare on May 15 of this year they would move the deadline for small and medium-sized businesses in the food and beverage industry to receive halal certification from October 2024 to October 2026.?
According to the relevant people, this shift is impacted by a variety of variables:
- Inadequate funding from the federal government
- Protect small and medium-sized businesses in the area
Since the announcement of the required halal certification policy by the Indonesian government last year, nearly a million small and medium-sized enterprises have applied for halal certification to the Indonesia Halal Certification Body ("BPJPH") under the Ministry of Health.
The current applications have obviously surpassed the initial cap, yet BPJPH is only able to offer up to 1 million free halal certifications annually owing to government funding limitations. Because of this, the Indonesian government decided to push back the deadline for small and medium-sized businesses to get halal certification.
At the same time, Indonesia only has one halal assurance agency ("LPH") because of the overwhelming volume of applications from small and medium-sized businesses. Many businesses won't be able to gain halal certification in the future if the required certification period is set for October of this year. This might result in needless legal conflicts and administrative penalties.
Government representatives also stated that the action was taken to allow businesses sufficient time to obtain further information and make necessary preparations. For instance, microbusinesses can apply for a free mark of compliance from the Indonesian government, but many are unaware of the laws.