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LPPOM MUI

Fact of Halal Certification Cost Calculation

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The Assessment Institute for Foods, Drugs, and Cosmetics Indonesian Council of Ulama (LPPOM MUI) was established began with the government’s assignment to the MUI to decrease cases of pork fat that occurred in 1988. Carrying out this task as well as reassure Muslims in consuming processed food products, MUI formed an institution semi-autonomous, namely LPPOM MUI, on January 6, 1989.

The agency in charge of carrying out inspection of the halal product is not a government agency or agency. Therefore, in carrying out product halal inspection, LPPOM MUI does not get government funding sourced from the State Budget (APBN).

Before the enactment of Act No. 33 of 2014 concerning Halal Product Assurance Act (UU JPH), for the last 31 years the halal certification process was carried out voluntarily by the company.

“This is done as a form of moral responsibility and fulfill the demands of Muslim consumers who want halal guaranteed products,” explained the Director of LPPOM MUI, Dr. Ir. Lukmanul Hakim, M.Sc.

Even so, for financing halal certification for Small and Medium Enterprises (SMEs), and Micro, Small and Medium Enterprises (MSMEs), LPPOM MUI often cooperates with government agencies in the form of financing facilitation. 

Apart from that, LPPOM MUI in carrying out its duties and functions does indeed quote funding from companies that apply for halal certification.

“This is the same as other certification bodies, for example quality certification and other certifications. However, the amount of the fee is in accordance with the scheme agreed by the company as outlined in the contract, “explained Lukmanul.

Meanwhile, to meet the provisions of the Taxation Law, LPPOM MUI has also been designated as a Taxable Entrepreneur (PKP), so that the LPPOM MUI must and have fulfilled all applicable taxation rules and conditions, including the LPPOM MUI Financial Statements which must be examined by public accountants. 

Considering that the halal certification process is done voluntarily and the registration is done online and transparently and is stated in the form of a contract signed by the company, the allegation and the assumption of a mafia in making halal certification is defamatory and constitutes a defamation of both the MUI and LPPOM MUI as an institution which is legally recognized and protected by the Constitution of the Unitary Republic of Indonesia.

LPPOM MUI halal certification costs include registration fees, audit fees, laboratory analysis (if it needed), as well as halal socialization and education costs. The cost component has been known by halal certificate applicants from the beginning of online registration through the LPPOM MUI Online Halal Certification System Application (Cerol-SS23000).

“It is important to emphasize the calculation cost for halal certification base on each certificate. The explanation must be delivered because some parties still assume that halal certification is calculated based on the product itself, such tax. I.g. Drinks, Cigarette and such products taxes,” said Lukmanul. (*)

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