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Halal Certification’s Challenges and Opportunities

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Halal certification is a challenge for business actors. If business actors can get through it well, then a great opportunity will be presented to expand the reach of the product market. The Assessment Institute for Foods, Drugs and Cosmetics Indonesian Council of Ulama (LPPOM MUI) is here to provide various services to assist companies in facing challenges in halal certification.

Halal Partnership and Halal Audit Director of LPPOM MUI, Dr. Muslich, M.Sc., conveyed this at the opening of the seminar themed “Halal Certification Obligations in Indonesia and How to Get Halal Certificate,” organized by LPPOM MUI in the Food Ingredients Asia (FiA) event at JIEXPO Jakarta on 7 September 2022.

Companies in halal certification face two main problems. First, halal certification is a form of company compliance with regulations. The Indonesian government has begun to enforce mandatory regulations for halal certification. This regulation is stated in Act Number 33 of 2014 concerning the Halal Product Assurance Act (UU JPH) and its derivative regulations. 

The mandatory halal certification period has come into the transition period. Muslich explained that there is a mandatory transition period for halal products based on product categories, including:

1. Food and Beverages: 17/10/2019 – 17/10/2024

2. Herb and Supplement: 17/10/2021 – 17/10/2026

3. OTC Drugs and Limited OTC Drugs: 17/10/2021 – 17/10/2029

4. Potent drug, unless psychotropic: 17/10/2021 – 17/10/2034

5. Cosmetics, Chemical Products, and Genetically Engineered Products: 17/10/2021 – 17/10/2026

  1. Use Items (clothing, accessories, household health supplies/PKRT, household supplies/utensils, worship equipment, stationery, office supplies): 17/10/2021 – 17/10/2026
  2. Use Items, Risk Level A – Medical Equipment: 17/10/2021 – 17/10/2026
  3. Use Items, Risk Level B – Medical Equipment: 17/10/2021 – 17/10/2029
  4. Use Items, Risk Level C – Medical Equipment: 17/10/2021 – 17/10/2034

Another challenge is meeting the criteria for halal certification. There are two critical points that companies must meet in halal certification. First, facilities that come into contact with materials/semi-finished products/finished goods must be swine-free. 

Second, the ingredients must be halal or included in the non-critical materials category. For sure, proving this requires sufficient supporting documents. The materials in question include raw materials, additives, auxiliary materials, cleaning agents, primary packaging, and cleaning validation media.

“To meet these criteria, companies must be supported by qualified personnel, generally looking for new sources of materials that have been confirmed to be halal, as well as looking for alternative methods/materials/systems to save costs,” explained Muslich.

In addition to all the challenges faced, halal certification provides a great opportunity for companies to expand their market reach. By holding a halal certificate, a product has more selling value. In addition, products can participate in fulfilling the halal product market, which still has great potential. Companies can also innovate by developing new products.

“The market for exporting halal products to Muslim countries or countries with halal-certified companies is also wide open. Therefore, LPPOM MUI can participate in encouraging companies to enter the global market, especially the United Arab Emirates (UAE),” said Muslich.

In 2017 and 2018, LPPOM MUI obtained Accreditation Certificates of SNI ISO / IEC 17025: 2008 for Halal Laboratories and SNI ISO / IEC 17065: 2012 and UAE 2055:2 for Halal Certification Bodies from the National Accreditation Committee (KAN). This standard is not only recognized in Indonesia but also recognized by the United Arab Emirates Accreditation Board or ESMA. This accreditation can be an entry point for business actors to expand the global market, especially in the UAE.

Food Ingredients Asia (FiA) 2022 is an expo of various ingredient suppliers, distributors, and food and beverage manufacturers from all over the ASEAN region and worldwide. This year the FiA will be held offline on 7-9 September 2022 at the JIExpo Jakarta International Expo, Kemayoran-Jakarta. In addition to offline activities, FiA also facilitates online activities, such as webinars. (YN)

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