LEGAL UPDATES BY BEPARTNERS
How the Newly Issued Perppu 2/2022 on Job Creation Impacts Halal Product Certification

PERPPU SERIES: Halal Certification

30 January 2023

Within this article, we will highlight the Perppu 2/2022 on Job Creation (“Perppu 2/2022”) substantial changes against Law 33/2014 on Halal Product Guarantee (Jaminan Produk Halal). We perceive that these changes will relevantly impact specific area of food and beverage sector as well as other products or medicine that require a halal certification. The changes include the certificate validity period, requirements for certificate renewal, and the established online system for certification obtainment through the integrated electronic system.

 

Firstly, the Perppu 2/2022 added a provision to Law 33/2014 that includes other authoritative bodies within the halal certification process. For background, the process of halal certification involves an application to the Badan Penyelenggara Jaminan Produk Halal (“BPJPH”). BPJPH is an agency formed under the Ministry of Religion (“MoR”) and functions to guarantee the halal composition of a certain product that is circulated and traded in Indonesia.

 

Before the BPJPH may issue a halal certificate, it is required to obtain a halal product confirmation from MUI. Only after such confirmation is received, then the halal certificate may be issued.

 

Halal product guarantee arrangements under Perppu 2/2022 include the stipulation of halal stipulations carried out by the Indonesian Ulema Council (“MUI”), Provincial MUI, Regency/City MUI, or the Aceh Deliberative Council which is carried out through a halal fatwa session, no later than 3 working days after receiving the report from the Lembaga Pemeriksa Halal or the Halal Inspection Agency.

 

In the event where MUI exceeds the deadline for determining product halalness, the determination of product halalness is carried out by a new government body named the Halal Product Fatwa Committee (Komite Fatwa Produk Halal or “KFPH”) based on relevant halal provisions. The KFPH is formed and is responsible to the MoR, which consists of scholarly and academic elements to provide ease and efficiency in the halal certification process.

 

In connection with the processing time for halal certification for micro and small business actors through an independent statement or self-declaration, there are 12 working days from the submission of an application to the BPJH, verification and validation by the halal product process assistant (PPH), halalness determination at KFPH, until halal certification is issued by BPJPH wherein such certificate shall continue to remain in force as long as there are no changes in product composition. The former thereby removes the validity period as a whole, which means there is no expiry date to the certificate. It further requires business entities to submit another application for halal certificate in the situation of the product component has been changed. In such situation, a new assessment would need to be made by BPJPH. 

 

With regard to obtaining the certification for halal products, the application submission was done manually by business entities to the BPJPH. The introduction of Perppu 2/2022 implements an integrated electronic system to issue certificates in relation to halal products.  This would create ease in obtaining the certificate as it can be done through the online single submission along with other licenses for business operation.

 

Below are the specific changes made as a result of the enactment of Perppu 2/2022.

Should there be any queries related to this regulation or to find out if this affects your business or personal interest, please do not hesitate to contact us.

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