To strengthen the national halal ecosystem, the Halal Inspection Body (LPH) LPPOM has taken a strategic step by encouraging halal certification from the upstream side, namely through facilitating halal meat grinding. This step is an essential breakthrough in supporting the implementation of mandatory halal in Indonesia, especially for Micro and Small Enterprises (UMK), which are the backbone of the national economy.
Significant problems in Indonesia’s halal product supply chain are often found in the early stages of production, especially in meat grinding services. Lasiman, the chairman of the Noodle and Meatball Traders Association (APMISO), said that in 2024, more than 70% of beef circulating in the market will be absorbed by meatball traders. However, only around 1.5% of them have been certified halal. This condition shows how important it is to strengthen the upstream aspect of the halal product assurance system (SJPH).
In response to this challenge, LPPOM held the 1446 H Syawal Festival with the theme “Strengthening Halal from Upstream through Halal Meat Grinding.” This activity is a strategic forum that not only brings together stakeholders in the halal industry but also directly provides real solutions by facilitating halal certification for 103 meat grinding services in 19 provinces. A total of 72 mills are facilitated through independent facilitation, and 31 mills in Bangka Belitung are facilitated by Bank Indonesia Bangka Belitung.
LPPOM also launched a pilot project for halal meat grinding services in Bogor and Makassar. Halal education and socialization have also been massively carried out to more than 1.000 participants throughout Indonesia. This approach is an important initial step to building a complete and sustainable halal supply chain.
LPPOM President Director, Muti Arintawati emphasized that this activity is LPPOM’s concrete commitment to empowering MSMEs. “The LPPOM Syawal Festival is a real form of LPPOM’s commitment to supporting MSMEs. This activity aims to increase the competitiveness of MSMEs while helping them meet the Government’s target in implementing halal certification obligations in Indonesia,” he explained at the peak of the 1446 H Syawal Festival, which took place on May 6, 2025, at the Gren Alia Hotel, Jakarta.
The meat grinding sector was chosen because of the high risk of mixing halal and non-halal ingredients. “We chose meat grinding because of the potential for mixing halal and haram meat and the use of additional ingredients or spices whose halal status is not yet clear – because customers bring their own meat and spices – such as meatball traders and restaurants, the majority of which are MSMEs,” continued Muti.
Halal MSMEs, Important Pillars of Sustainable Sharia Economy
The Government projects significant growth in the national halal industry supported by MSMEs through the Ministry of Cooperatives and SMEs. The Minister of Cooperatives and SMEs, Maman Abdurahman, emphasized in his online remarks that the LPPOM Syawal Festival is a momentum to strengthen halal MSMEs.
“The LPPOM Syawal Festival 1446 H is an opportunity to strengthen ties and share experiences to strengthen commitments in advancing the MSME sector. Indonesia is a very important market in the world’s halal product trade with 87% of its 260 million population being Muslim,” he said.
Maman added that the Government is targeting to issue 3.5 million halal certificates nationally by 2025. “For this, collaboration between ministries and institutions is needed. I also hope that new collaborators will emerge to accelerate this target. Thank you to all parties who contributed to the implementation of this event,” he added.
The National Halal Ecosystem Must Start from Upstream
Commitment to the development of the halal industry also comes from the Islamic banking sector. M. Syukron Habiby, Senior Vice President of Islamic Ecosystem from Bank Syariah Indonesia (BSI), stated: “The halal industry sector is a very potential sector based on the growth of the global halal market and Indonesia’s strategic position in this industry. One of the main indicators is that Indonesia is ranked 3rd in the Global Islamic Economy Indicator (GIEI) according to the State of the Global Islamic Economy Report 2023.”
Deputy Director of the Department of Islamic Economics and Finance of Bank Indonesia (DEKS BI), Anna Setyawati, mentioned the importance of strengthening from upstream. “We continue to encourage MSMEs to obtain halal certificates, continue to encourage them to develop and accelerate in 2025. BI’s strategies include strengthening the upstream ecosystem from RPH and halal slaughterers (juleha), increasing the capacity of PPH assistants, and expanding halal education in the community,” he explained.
According to him, halal product growth directly impacts local business actors’ competitiveness, market expansion, and job creation in various lines, including logistics and distribution.
LPPOM Syawal Festival, Strategic Space for Halal Industry Acceleration
Director of Sharia Business and Entrepreneurship KNEKS and Acting Director of Halal Product Industry, Putu Rahwidhiyasa, said that strengthening halal meat grinding is integral to the global halal value chain. “Indonesia, as a strong part of the world’s Halal Value Chain, pioneered global halal product traceability with a trusted Halal Assurance System,” he explained.
He emphasized the importance of coaching programs and incentive schemes for the meat-grinding sector. “A mass halal coaching and certification program is needed for this sector. Incentive schemes are also needed for business actors who are committed to the halal production process. We appreciate LPPOM for its commitment to driving halal from upstream,” he said.
Head of the Sub-Division of the Head of Mental Spiritual, DKI Jakarta Education and Mental Spiritual (Dikmental) Bureau, H. Herman S. Ag, M.Si., also highlighted the spiritual dimension of halal products. “Halal products concern aspects of faith, so every Muslim is required to ensure that what is consumed, used, and done is in accordance with the principles of halal without compromise. Violating this principle means ignoring obligations,” he said.
With a collaborative approach and focus from the upstream side, LPH LPPOM is again carrying out its strategic role in building the foundation of a strong and globally competitive national halal ecosystem. Halal certification is now an administrative obligation and part of Indonesia’s economic, social, and spiritual transformation towards the center of the world’s halal industry. (ZUL/YN)
