Mandatory Halal Certification for MSMEs by 2025: Free vs. Regular, Which is the Right Choice?

What is MSME Halal Certification? 

MSME Halal Certification is a formal process for obtaining recognition that products produced by MSMEs comply with halal standards as defined by Islamic law. This certificate is issued by the Halal Product Assurance Agency (BPJPH) with an audit by LPH LPPOM (formerly LPPOM MUI).

Why is it important? Starting in 2025, halal certification will be mandatory for food, beverages, cosmetics, traditional medicines, and certain products sold in Indonesia. Without halal certification, MSME products could be withdrawn from the market or lose consumer trust. 

👉 So, it’s not just about legality, but also a token of trust that allows MSME products to compete more widely. 

Why is MSME Halal Certification Mandatory? 

There are three main reasons why the government requires halal certification: 

1. Muslim Consumer Protection → The majority of Indonesians are Muslim and want assurance of the halal status of their products. 

2. Global Competitiveness → Products with halal labels are more easily accessible to international markets. 

3. Regulatory Compliance → in accordance with the Halal Product Assurance Act No. 33 of 2014. 

Therefore, mandatory halal certification is not merely a regulation, but a significant opportunity for MSMEs to expand their operations. 

Source: BPJPH 

Halal Certification Options for MSMEs: Free vs. Regular 

Many MSMEs are confused: is it better to apply for a free or regular MSME halal certificate? Let’s dissect this. 

Free Halal Certification for MSMEs	Regular Halal Certification
This program is funded by the government for certain MSMEs. Advantages: Free. Suitable for start-up MSMEs. Disadvantages: Limited quota. Not all products will qualify. Longer process. Uncertainty of schedule and results.	Done at your own expense. Advantages: More certainty and speed. Can be used for all product types. Professional support available. Certificate valid for life (as long as there are no changes to the composition/production).

Free is undoubtedly attractive, but if you’re serious about getting your product legal, trusted, and upgraded quickly, choosing regular certification is safer and more profitable. 

How to Obtain Halal Certification for MSMEs 

To clarify, here are the steps to obtain halal certification: 

1. Register with SiHalal BPJPH (online). 

2. Upload documents: ID card, NIB, product data, raw materials, production process. 

3. Choose the pathway: Self-Declare (specifically for simple products and certain MSMEs) or Regular. 

4. Audit and verification by LPPOM MUI. 

5. Halal certificate is issued if passed. 

Tip: Don’t choose a pathway carelessly. Selecting the incorrect option can result in certification failure. Ensure you have the proper halal certification support. 

Challenges in Managing Halal Certification for MSMEs 

Procuring halal certification is not easy. Challenges often faced by MSMEs include: 

• Incomplete documents. 

• Choosing the wrong pathway (Self-Declare vs. Regular). 

• Not understanding the latest regulations. 

• Difficulty preparing proof of halal raw materials. 

The solution? Use halal certification assistance from an experienced institution like LPH LPPOM (formerly LPPOM MUI). With help, the process is faster, more accurate, and reduces failures. 

Benefits of Managing Halal Certification for MSMEs 

Once you have a halal certificate, your MSME will benefit: 

1. Increased consumer trust. 

2. Easier product entry into retail and marketplaces. 

3. Access to international markets. 

4. Upgrade from local to national/global scale. 

5. No worry about legal sanctions. 

A halal certificate is not just a stamp, but a powerful branding strategy. 

Free vs. Regular MSME Halal Certificate: Which is Better? 

If you’d like to try it out, you can register for free. However, if your goal is serious about business, you want to grow quickly, and focus on brand trust, regularity is the answer. 

👉 Remember, free quotas are limited and not all products are accepted. 

👉 With regular certification, you can go straight to market without bureaucratic hurdles. 

Conclusion: MSME Halal Certification Is an Investment in the Future 

MSME Halal certification is no longer an option, but a requirement for businesses looking to survive and thrive in an era of intense competition. Free MSME halal certification programs do exist, but they are limited and fraught with uncertainty. 

In contrast, by choosing regular halal certification, you get: 

• ✅ A faster and more reliable process. 

• ✅ Professional mentoring support. 

• ✅ The certificate is valid for life (as long as the product remains unchanged). 

• ✅ Automatically increases consumer trust. 

So, don’t wait for your competitors to do the same. 

Apply for regular MSME halal certification now, so your business can scale up, gain market trust, and be ready to expand nationally and globally. 

Click here to start the regular halal certification process today → Register for Regular Halal Certification.