Amid increasing demand for BPJPH halal certification, many MSMEs still struggle to meet requirements ranging from NIB certification to halal raw materials. This challenge makes assistance from LPHs, such as LPPOM, crucial for businesses to move faster and be ready to enter the ever-expanding halal ecosystem.
Amid the booming growth of Micro, Small, and Medium Enterprises (MSMEs), the backbone of the national economy, halal certification is now both a crucial need and a significant challenge. Especially for micro, small, and medium enterprises (MSMEs) seeking to scale up, BPJPH halal certification is not just a compliance label but also the key to accessing a broader market. On stage at the UI Halal Expo 2025, Dr. Ir. Muslich, M.Si., Director of Partnerships and Halal Audit Services at the LPPOM Halal Inspection Body (LPH), clearly outlined the real challenges MSMEs face and the efforts LPHs are making to facilitate their journey.
Indonesia has an incredibly large number of businesses. “There are 14 million micro and small businesses (MSEs) that have a Business Identification Number (NIB). For food and beverages, there are 43 million,” said Dr. Muslich. However, this high number is inversely proportional to the ownership of basic legal documents, especially a risk-based NIB, which is now a mandatory requirement for obtaining halal certification.
“A risk-based NIB is required; this is a requirement for halal certification. This is a major challenge for micro and small businesses. I think we still have work to do to formalize these businesses, one way is through this risk-based NIB document. Because without one, we cannot register for halal certification,” he explained.
The experience of the LPH LPPOM in handling halal certification for MSEs shows that this process is not instantaneous. Commitment to mentoring is key. One major example is the kitchen of the Nutrition Fulfillment Service Unit (SPPG) in the Free Nutritional Meal Program (MBG), which is currently being widely applied for certification.
Currently, there are more than 15,000 MBG/SPPG kitchens, and those that have been certified are probably still under 1,000. We must adhere to the MBG target,” he said. However, there is a bright spot: most of them already have a NIB, so mentoring can focus on document preparation and compliance with halal requirements.
However, the journey to BPJPH halal certification isn’t just about documentation. MSMEs also face the challenge of low regulatory awareness. “The main challenge is awareness of regulatory obligations. Specifically, in MSMEs, this awareness is still lacking. We haven’t reached them very widely,” said Dr. Muslich. Unlike large companies, which tend to wait for sanctions or consumer demand, MSMEs are often hampered by a lack of understanding of the urgency of halal certification for the sustainability of their businesses.
The challenges become more complex as you enter the supply chain. For small businesses, ensuring all raw materials are halal from upstream to downstream is challenging. “Available materials are sometimes limited. For certain products, they are in supply chains that are not yet ready for halal certification,” he explained.
For example, in certain areas, halal-certified slaughterhouses (RPH/U) are difficult to find. As a result, businesses must seek alternatives while awaiting verification of the slaughterhouse or be encouraged to complete their certification.
“For large companies, this is easier because they have the ability to encourage their vendors to obtain halal certification, or they have the option of choosing materials that are already halal-certified,” he added. MSMEs, on the other hand, often face limitations—whether in budget, material choices, or information.
Regulatory dynamics also pose a challenge. “The Decree of the Minister of Religious Affairs (KMA) Number 748 of 2021 concerning Types of Products Requiring Halal Certification includes food and beverages, which are subject to mandatory halal certification. Many are still not ready for halal certification,” said Dr. Muslich.
The challenge is further complicated when imported ingredients are involved. This situation further complicates domestic producers, who only purchase ingredients in small quantities from distributors and lack the pressure to request certification.
Therefore, disseminating regulations and providing information on halal ingredients is crucial. “The process of disseminating these policy regulations is crucial, especially for micro, small, and medium enterprises. Providing a choice of halal ingredients is also crucial,” emphasized Dr. Muslich. The LPH LPPOM has also taken proactive steps by preparing a list of halal ingredients for MSMEs to choose from, based on their specifications and affordability, making it easier for them to meet halal certification criteria.
In addition to providing information, LPH LPPOM runs various concrete mentoring programs. “We also have a schedule for literacy and mentoring, as well as online and offline policy dissemination. This is our way of addressing certification challenges for micro, small, and medium enterprises,” he said. Through a series of activities, including webinars, introductions to halal certification, seminars at various exhibitions, and literacy and mentoring programs, the LPH LPPOM strives to broaden MSMEs’ understanding of the halal certification process and requirements.
MSMEs need a practical learning path. LPH LPPOM presents the “Introduction to Halal Certification” program, an online class that provides easy, step-by-step guidance. This program can be accessed at https://halalmui.org/pengenalan-sertifikasi-halal/ and is an effective solution for businesses seeking to ensure their products meet halal standards without sacrificing efficiency.
The journey to obtaining BPJPH halal certification for MSMEs is indeed fraught with challenges—from legal issues and understanding regulations to supply chains, cross-contamination, and limited technical literacy. However, through continued mentoring by LPHs like LPPOM, it is hoped that more micro, small, and medium enterprises can advance and bring their products to a wider market with guaranteed halal certification. MSMEs are growing, consumer trust is maintained, and the national halal industry ecosystem is strengthening. (YN)
