Considered expensive and too long, let’s thoroughly examine the rates and halal inspection times

In recent times, halal certification has become a topic that business actors widely discuss. The main issues that often arise are the certification costs, which are considered expensive, and the inspection process, which is considered to take a long time. It is suspected that brokers disguised as consultants are involved in the halal certification process, which is more expensive and complicated.

To provide a clearer understanding of this, the Halal Inspection Body (LPH) LPPOM held a Media Gathering on March 19 at the Grandhika Iskandarsyah Hotel, Jakarta. On this occasion, the speakers were the President Director of LPH LPPOM, Muti Arintawati, and the Chairperson of the Indonesian Halal Inspection Institute Association (ALPHI), Elvina A. Rahayu.

According to Muti Arintawati, the implementation of rates in the field still faces various challenges. Some business actors feel that the costs that must be incurred are pretty significant, especially for micro and small businesses. However, he emphasized that the rates set are in accordance with applicable regulations.

“Most of the costs of the halal inspection rates are allocated for institutional operations, education for the public and business actors, and Corporate Social Responsibility (CSR) programs that support increasing halal awareness in Indonesia,” said Muti.

Halal Inspection Duration

One of the questions that often arises from business actors is how long it takes to get a halal certificate. Based on Government Regulation Number 42 of 2024 Article 82, the duration of the halal inspection follows the Service Level Agreement (SLA) standards that have been set.

In the regular scheme, the halal certification process begins with registration in the BPJPH Halal Information System (SiHALAL), which takes a maximum of 2 days. After that, BPJPH will verify the documents within 1 day before forwarding them to the Halal Inspection Body (LPH). At the LPH, business actors will receive information about the costs within 2 days, and payment and issuance of the Document Receipt Letter (STTD) by BPJPH will be carried out within 5 working days.

The inspection process by LPH, which includes document verification, field audits, and laboratory tests if necessary, takes a maximum of 10 days for domestic businesses and 15 days for foreign companies, which can be extended for a maximum of 10 working days. After that, the audit report will be submitted to the MUI Fatwa Commission, which has a maximum of 3 days to determine the halal status of a product.

Muti explained that in ideal conditions, this entire process can be completed in less than a month. However, in practice, delays often occur due to the company’s lack of readiness in preparing documents and implementing SJPH.

“What makes the halal certification process take a long time is the many things that do not meet the criteria, such as the absence of use of non-halal raw materials, inadequate halal documents for raw materials, and the continued use of shared facilities with products that are still in contact with haram and najis materials,” he concluded.

Halal Certification Fee Calculation

Elvina Rahayu explained that the scale of the business influences the cost of halal certification, the type of product, and the number of facilities (factories/outlets) or branches owned by the business actor. BPJPH has officially regulated this fee through several regulations, namely the Decree of the Head of BPJPH 141 of 2021, which was later revised to the Decree of the Head of BPJPH 83 of 2022, and the latest is the Decree of the Head of BPJPH Number 22 of 2024.

Therefore, the fees charged by LPH in the halal inspection process have a clear regulatory basis and are not figures that are determined arbitrarily. A franchise restaurant with dozens to hundreds of branches certainly requires a more complex audit process compared to a small food stall that only has one outlet. This affects the number of auditors and the days needed during the audit process, so the fees charged will also be different. “According to the Indonesian Council of Ulama (MUI), LPH is a witness for clerics. Our job is quite difficult, so we (LPH) need to work professionally. Halal is free, but halal inspection is not free. Halal certification is proportional. LPH is also part of the ecosystem that carries out the halal business process. The main thing is how we carry out this halal inspection process in a halal way,” said Elvina.

Meanwhile, Muti emphasized the importance of being aware of brokers who claim to be consultants but only charge hefty fees without helping with the halal certification process. “Business actors need to carefully pay attention to the cost details when using consultant services. Beware of brokers disguised as consultants who only take profit!” she concluded.

Although often considered expensive and long, the rates and time for halal inspections have been set with certain standards to remain transparent and efficient. “Good preparation, including understanding and implementing SJPH, can speed up and simplify the halal certification process,” said Muti. With the increasing awareness of halal in Indonesia, it is hoped that this process can continue to develop and become more accessible to all business actors. “Halal certification is part of the regulation that involves various parties, including BPJPH as the regulator, the Indonesian Council of Ulama (MUI) as the authority that issues fatwas, and LPH which is tasked with conducting product halal inspections. Therefore, it is important for the public and business actors to understand how the halal certification process is carried out and how the rates are determined so that there are no misunderstandings,” said Elvina, closing the discussion. (***)

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Simulation of Halal Certification Calculation for Restaurants based on the Decree of the Head of BPJPH Number 22 of 2024 concerning the 4th Amendment to Kepkaban No. 141 of 2021.

Examples of business actor conditions, namely: restaurants in the city (Jakarta), LPH in Jakarta (in the city), number of facilities, 1 outlet, and 20 products (4 man-days).