Indonesian Halal Industry and Exports: Critical Points of Ingredients

Export opportunities for Indonesian halal products are not determined solely by issued certificates. On the industry side, what matters is the ability to maintain ingredient traceability from suppliers to finished products. Halal product assurance regulations already provide a framework, but practices on the production line and in ingredient procurement are often the deciding factor.

Regulatory framework as reference

Law Number 33 of 2014 on Halal Product Assurance is the parent policy. This law regulates the obligation for halal certification, the establishment of BPJPH (Halal Product Assurance Agency), the role of LPH (Halal Inspection Agency), and MUI's authority in determining product halalness. The latest amendment through Law Number 6 of 2023 simplifies the certification process, introduces a halal statement scheme for UMK (micro and small enterprises), and paves the way for the Halal Product Fatwa Committee.

The groups of products that must be halal-certified along with their phasing are stipulated through Minister of Religious Affairs Decree Number 748 of 2021, which was later amended by KMA 944/2024. For export-oriented industries, compliance with these stages is part of product and market planning.

On the institutional side, BPJPH Head Decree Number 78 of 2025 regulates accreditation guidelines for Halal Inspection Agencies, covering requirements, Pratama and Utama qualifications, competency scope, costs, application flow, surveillance, and witness assessment, with reference to SNI ISO/IEC 17065:2012. These guidelines are important because the quality of inspection determines market trust in the certificates issued.

It should be noted that halal determination is the authority of the MUI Fatwa Commission/Halal Product Fatwa Committee, while certificates are only issued by BPJPH. This article does not determine the halal status of any product, but rather discusses ingredient management at the industry level.

Why ingredient critical points determine exports

Export destination markets generally require traceable evidence, not merely statements. If an ingredient comes from a source whose status is not yet clear, producers need supporting documents from suppliers. Without them, products risk being held at the verification stage, even if the production facility is already clean.

Several ingredients that often become critical points:

• Carmine / Cochineal (E120). A natural red colorant from the cochineal insect; scholars differ on its status. This ingredient is commonly used in red-colored beverages, candy, lipstick, fruit yogurt, and processed meat products. Plant-based alternatives such as beet, anthocyanin, or lycopene can be considered according to the formula.
• Taurine. An amino acid in energy drinks; it is now generally synthetic, but historically came from bovine bile. For exports, documents on the origin of the ingredient are key, including when using synthetic taurine that has been halal-certified.
• Lecithin (E322). An emulsifier generally from soy, but partly from egg yolk or animal fat. Soy lecithin or sunflower lecithin clearly stated on the label helps clarify the origin of the ingredient.
• L-Arginine and other amino acids. Amino acid supplements that may be microbial fermentation products or extracted from animal sources. For export markets, amino acids from microbial fermentation need to be accompanied by traceability documents from suppliers.

Procurement practices that support exports

Industries that want to maintain export continuity need to treat ingredient documents as part of the quality system. Several commonly taken steps:

1. Map each ingredient to its source, including additives and processing aids.
2. Request specifications and statements of ingredient origin from suppliers, then update them periodically.
3. Keep records of formula changes so that traceability is not interrupted when ingredients are substituted.
4. Align labels and claims with the documents actually available.

These steps are not an automatic guarantee, but they reduce the risk of findings during inspection and facilitate communication with overseas buyers.

Sustainability-oriented readiness

Halal certification is not the end point. Changes in suppliers, formulas, or production lines can affect the status of ingredients. Therefore, industries need internal mechanisms to assess the impact of every change. This is where the halal product assurance system serves as a working tool, not merely an administrative document.

For businesses that want to manage SJPH (Halal Product Assurance System) criteria in an integrated manner, IndoHalal.id provides an SJPH platform to help manage halal policies, ingredient registries, critical points, internal audits, and BPJPH certification readiness in one application.