Amid increasingly complex global market demands, industries are no longer assessed solely by quality and profit, but also by ethics, sustainability, and halal compliance. In this context, the Halal Product Assurance System (SJPH) is not merely an administrative obligation, but an important strategy to align with global standards while strengthening competitiveness and trust in Indonesian industries.
By: Hendra Utama, Senior Auditor, Halal Inspection Body (LPH) LPPOM
In recent years, the global industrial landscape has undergone significant changes that cannot be ignored. Companies are no longer evaluated solely based on their ability to reduce costs and generate profit. Businesses are now required to demonstrate something far more fundamental: integrity in conducting business practices, compliance with quality standards, commitment to ethics, consumer protection, and contributions to the sustainability of the planet and society.
For Indonesia, these demands carry an additional and distinctive dimension: halal compliance. This is where the strategic position of the Halal Product Assurance System (SJPH) becomes evident. So far, SJPH has often been perceived as an administrative obligation consisting of piles of documents, lists of materials, and periodic audits.
However, when viewed more broadly, SJPH is a gateway toward future industrial governance. It stands alongside international standards such as ISO, aligns with the Environmental, Social, and Governance (ESG) framework, and connects with the broader agenda of the Sustainable Development Goals (SDGs). Halal is not merely a religious label, but a foundation for reputation, competitiveness, and global trust.
From Fragmented Compliance to Value Convergence
Today’s world is full of paradoxes. International politics is becoming increasingly polarized, trade is filled with protectionism, and national identities are strengthening. Yet amid this fragmentation, industry is moving in the opposite direction: toward standardization and convergence of values.
Multinational companies cannot rely on compliance with only one local regulation. They must operate flexibly within a multilayered regulatory network covering quality, safety, environment, social responsibility, and now halal compliance. Standards and certifications have become a universal language that allows products to be accepted in multiple countries.
The problem is that in Indonesia, regulations are often viewed as obstacles. Many businesses feel “restricted” by regulations rather than supported by them. In fact, standards are not designed to burden industries but to close information gaps and increase trust. For consumers, standards provide assurance; for producers, they build legitimacy.
From this perspective, separating compliance into isolated boxes—quality in one area, halal in another, environment somewhere else—actually creates inefficiency. Systems that operate independently increase costs, produce disconnected data, and make organizations vulnerable to inconsistency. Integration is the answer, not merely as a technical project but as the foundation of industrial governance transformation.
Standards as Pillars of Modern Governance
If examined closely, SJPH has an architecture very similar to modern management systems worldwide. It requires organizations to establish policies, assign responsible personnel, manage materials, trace processes, conduct audits, and implement continuous improvement. These are the core elements of good corporate governance: accountability, transparency, and integrity.
Just like ISO 9001 or ISO 22000, which emerged from global market needs, SJPH also grew from the demands of society—particularly Muslim communities—for assurance of safety, quality, and halal integrity in food products. Therefore, placing SJPH outside other management systems is a conceptual mistake. It is an integral part of corporate governance structures.
Avoiding Pseudo Integration
Recently, many companies claim to have implemented an “integrated management system.” In practice, however, it often stops at combining binders or preparing requirement comparison matrices. Such practices may appear “integrated,” but in reality they mostly focus on documentation work.
True integration occurs when halal values, quality, ethics, safety, and environmental responsibility are embedded in the organization’s daily decision-making processes. KPIs support one another, policies do not overlap, audits generate strategic insights, and employees genuinely understand the purpose of the system rather than simply following procedures.
In other words, integration is not merely about merging documents but about aligning direction, culture, and operational logic.
A Technocratic Approach: Systems as Decision Engines
To move further, management systems must be viewed as tools rather than goals. Supply chain transparency, risk assessment, supplier selection, internal audits, and management reviews are areas where integration becomes tangible.
For example, integrated risk management can simultaneously evaluate three types of risks: the risk of non-halal materials, the risk of poor product quality, and environmental impacts. Supplier evaluation can include halal certification status, food safety compliance, and sustainability track records. Internal audits should not merely list non-conformities, but serve as the basis for improving system implementation in the next cycle.
The results of these processes then become the basis for impactful decisions: selecting alternative suppliers, modifying raw material formulations, or deciding on investments to improve production processes.
Halal in the Global Value Chain Perspective
As global markets become more competitive, entering high-value supply chains becomes both a challenge and an opportunity. A well-implemented SJPH can serve as a gateway for Indonesian industries to access international markets—from the Middle East and South Asia to Africa and Europe.
Halal is not only a certification label; it is a reputation. It demonstrates process discipline, professional management, and commitment to consumers. When combined with international quality standards, Indonesian companies can position themselves not merely as second-tier suppliers, but as strategic global partners.
Halal as a Bridge between ESG and SDGs
Within the ESG discourse, SJPH has logical alignment. In the Governance aspect, it provides a control structure. In the Social aspect, it protects consumers’ rights and beliefs. In the Environmental aspect, its integration encourages companies to operate more efficiently, cleanly, and responsibly.
When aligned with the Sustainable Development Goals (SDGs), its contribution becomes clear: improving public health, promoting economic growth, encouraging industrial innovation, supporting responsible consumption, and strengthening global supply chain partnerships.
To realize the benefits of integration, government and industry must move together. The government needs to develop integration guidelines, strengthen the capacity of audit institutions, and provide incentives for companies adopting integrated systems. Businesses must take bold top-down steps: placing SJPH and quality management at the core of their strategies, not merely at the operational margins.
Ultimately, this integrated approach opens the path toward a more resilient, trusted, and competitive Indonesian industry. In the future, halal compliance and sustainability will no longer be differentiators but minimum requirements. Indonesia has the opportunity not only to meet global standards, but also to help shape them. (***)
Source:
Jurnal Halal 177 https://halalmui.org/jurnal-halal/177/
