MSME Constraints in Halal Certification and Practical Solutions

The halal certification obligation touches all business scales, including micro and small enterprises (UMK). However, UMK face different issues from large industries. Limited resources, uneven understanding of regulations, and difficult-to-trace critical material points are the three main constraints.

Limited Human Resources and Administration

UMK are generally managed by the owners themselves with few employees. There is no dedicated division handling documents, internal audits, or material registries. Yet, the halal certification process demands a number of documents: ingredient lists, production flows, halal policies, and purchase evidence. This administrative work is often seen as an extra burden amid daily operations.

The practical solution is to simplify record-keeping from the start. Begin with a tidy list of raw materials, keep labels and halal certificates from suppliers, and record the production flow simply. Well-organized documents ease the registration and audit process.

Uneven Understanding of Regulations

Halal regulations continue to develop. Law 6/2023 simplifies the certification process and introduces a halal statement scheme (self-declare) for UMK. This scheme provides a lighter path for micro and small businesses with low-risk products.

However, many UMK actors do not yet understand the difference between the regular path and self-declare, or what needs to be prepared. BPJPH Decree 243/2025 sets out 27 types of BPJPH services complete with requirements, timeframes, and tariffs. This information is available, but not all business actors have the time to read it.

An initial step that can be taken is to identify the appropriate path. If the business falls into the micro or small category with low-risk products, the self-declare scheme can be an option. If not, the regular path with assistance is more appropriate.

Critical Material Points That Are Difficult to Trace

This is the issue that most often arises in UMK production kitchens. Many ingredients that appear simple actually harbor critical points. Here are some examples to watch for:

• Shellac (E904) — a glossy coating from lac insect resin. Generally used on candies, pills, and fruit coatings. Materially it is generally tolerated, but the process needs to be checked. The alternative is halal-certified shellac or plant-based coatings such as pure carnauba wax.
• Rennet (milk-clotting enzyme) — used in hard and semi-hard cheeses such as cheddar, mozzarella, parmesan, and gouda. Animal rennet comes from the stomach of calves that must be slaughtered according to sharia. The alternative is microbial rennet from fungi or molds, or fermentation-produced chymosin (FPC) that is halal-certified.
• Stearic acid / magnesium stearate (E470, E572) — anti-caking agents in tablets, supplements, instant drink powders, and compact powder cosmetics. They can come from palm oil or animal fat. The alternative is halal-certified vegetable stearic acid, generally from palm oil.
• Isinglass — a clarifying agent from fish swim bladders, commonly used in beer and wine. For non-alcoholic beverage products, the alternative is plant-based clarifying agents such as bentonite or carrageenan.

For UMK, tracing these critical points requires information from suppliers. Unfortunately, not all suppliers provide halal documents. Small producers often buy ingredients at markets or shops without clear halal certificates.

Strategies for Facing Constraints

There are several practical steps UMK can take to reduce the burden:

1. Choose transparent suppliers. Prioritize suppliers who can provide halal certificates or at least documents of ingredient origin. If none, look for safer alternatives.
2. Record every ingredient and its origin. A simple ingredient registry helps during audits and facilitates tracing if there are changes.
3. Utilize available schemes. Self-declare for low-risk UMK, or assistance for the regular path.
4. Join training or assistance. Understanding critical points and documents will save time and cost.

UMK constraints are real, but not without solutions. With tidy record-keeping, sufficient understanding of regulations, and careful selection of ingredients, the halal certification process can be undertaken more smoothly.

If you need assistance for micro and small businesses, the UMK Self-Declare Assistance service from IndoHalal.id can help you prepare a halal statement in accordance with the provisions.