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The Transparency of Halal Audit Cost at LPH LPPOM MUI

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Some parties are probably still questioning the cost transparency of the MUI Halal Determination carried out by the Halal Inspection Body (LPH) of LPPOM MUI. The question also often comes out over time, and whether it is realized or not, this has been repeated for several years. In fact, in the cost of halal certification, the amount of the fee is following the scheme that has been agreed upon by the company as outlined in the contract. 

Actually, what is meant by not being transparent is it needs to be mapped properly so that the perceptions of various parties are equal so that the focus will be on solutions and halal certification will run smoothly without any negative perceptions that continue to haunt it. However, halal certification must continue to go hand in hand with the effective enactment of Act No. 33 of 2014 concerning Halal Product Assurance (UU JPH) that requires all produced, circulated, sold products in Indonesia to be halal certified.

During the process, the Halal Product Assurance (JPH) Act involves at least 3 parties in the halal certification service, those are the Halal Product Assurance Agency (BPJPH), the Indonesian Council of Ulama (MUI), and the Halal Inspection Body (LPH). 

The Assessment Institute of Foods, Drugs, and Cosmetics of Indonesian Council of Ulama (LPPOM MUI) which was established more than 30 years ago is one of the LPH’s that carry out inspections of the halalness of materials in a production process (LPPOM is not only conducting inspections but also testing materials, and play a role in the field of inspection, assessment and testing of Food products, Medicines, Cosmetics, Goods, Services and other processed products in the Halal Certification process. In its inspection, LPPOM MUI is independent without any intervention from any party, including MUI. 

LPPOM MUI will report the results of its inspection to MUI for a fatwa on its legal status whether a product has met the halal requirements or not. 

LPPOM MUI is not a government agency or institution. Therefore, in carrying out product halal inspections, LPPOM MUI does not earn government funding sourced from the State Budget (APBN). Therefore, in inspecting product halalness, LPPOM MUI imposes certain fees on companies that apply for the MUI Halal Decree.

“This is the same with other certification bodies, for example, quality certification and other certifications. However, the amount of the fee is following the scheme that has been agreed upon by the company which is stated in the contract,” explained the Executive Director of LPPOM MUI, Ir. Muti Arintawati, M.Sc.

The financing process at LPPOM MUI is carried out in a very transparent, accountable, and accountable manner. If there is an assumption that the cost of halal certification is not transparent, then this is an ungrounded accusation. However, both LPPOM MUI and the company know the costs incurred and agreed in the form of a halal certification payment contract. 

In the contract, the cost of the halal certification process by MUI includes the cost of professional services for halal auditors, audit fees, and fees for halal certification. The cost component has been known by the applicant for a halal certificate from the beginning by online registration through the LPPOM MUI Cerol-SS23000 Online Halal Certification System. This is one of the methods to know the transparency of LPPOM MUI to companies. There are no hidden costs, so the company knows very well the allocation of the costs it incurs.

Meanwhile, to comply with the provisions of the Taxation Law, LPPOM MUI has also been designated as a Taxable Entrepreneur (PKP), so LPPOM MUI has to and has complied with all applicable tax rules and regulations, including the LPPOM MUI Financial Statements that needs to be audited by a public accountant. 

By the transparent cost management of the MUI Halal Decree as mentioned above, the assessment of LPPOM MUI’s financial statements continues to obtain the Unqualified Predicate (WTP). (YS/FM) 

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