What the Halal Regulations Contain and Their Consequences for Business Actors

The halal certification obligation is based on Law Number 33 of 2014 on Halal Product Assurance. This law governs the certification obligation, the establishment of BPJPH (Halal Product Assurance Agency), the role of LPH (Halal Inspection Agency), and the authority of MUI (Indonesian Ulema Council) in determining the halal status of products.

For business actors, the question is not only "am I required to have a certificate". A more useful question: what must change within my business so that the obligation is met and sustained.

Product groups required to be certified

Minister of Religious Affairs Decree Number 748 of 2021 establishes the product groups required to be halal-certified along with their phasing. This regulation was later amended by KMA 944/2024.

The practical consequence: the obligation does not fall on all businesses at the same time. Business actors need to determine which group their product falls into and which phasing stage it is at. Misreading the stages can cause a business to prepare too early or, conversely, too late.

Five criteria of the halal product assurance system

The main reference for implementing the Halal Product Assurance System (SJPH) on the business actor's side is Head of BPJPH Decree Number 57 of 2021 on the Criteria for the Halal Product Assurance System. This regulation was amended by Kepka 20/2023.

There are five criteria that must be met:

1. Commitment and responsibility.
2. Ingredients.
3. Halal product process.
4. Product.
5. Monitoring and evaluation.

These five criteria are not merely a list of documents. They are an interlocking chain. Commitment without ingredient records does not work. Ingredients that are already safe without a maintained process still leave risk. All of this needs to be monitored and evaluated periodically.

Consequences for ingredients and processes

The ingredient criteria require business actors to know the origin of every ingredient. Some ingredients are classified as critical points because their status depends on their source.

• Gelatin. A thickening protein from animal collagen. It is halal only if the source and slaughtering are clear. Alternatives include fish gelatin, halal-certified beef gelatin, or agar-agar and carrageenan. This ingredient is commonly used in marshmallows, jelly candies, medicine and supplement capsules, ice cream, yogurt, and certain bakery products.
• Whey and caseinate. Milk derivatives that are themselves halal, but the cheese-making process of their source may use animal rennet. Choose whey or caseinate from producers that state the use of microbial rennet or halal-certified animal rennet. This ingredient is widely used in formula powdered milk, protein drinks, bread and bakery products, and processed cheese.
• Animal fat and shortening. Solid fat from animals for frying and baking. Lard from pigs is absolutely haram. Alternatives are palm oil, coconut oil, vegetable margarine, or shortening from halal-certified beef fat. Commonly used in cookies, pastry, donuts, instant noodles, and packaged fried products.
• Glycerin or glycerol (E422). A versatile humectant that can come from palm oil or pig fat. Choose halal-certified vegetable glycerin, generally from palm or coconut oil. This ingredient is used in toothpaste, syrup medicine, cosmetics, candy, moist cakes, and food preservatives.

The practical consequence is clear. Every ingredient on the list above requires supporting documents from the supplier. Without that, the ingredient criteria are difficult to meet, and the process criteria also become shaky.

Consequences for services and costs

Head of BPJPH Decree Number 243 of 2025 on Service Standards at BPJPH establishes 27 types of BPJPH services complete with requirements, timeframes, and tariffs. This regulation revokes Kepka 120/2022.

For business actors, this means there is an official reference on what is requested, how long the process takes, and how much it costs. This reduces uncertainty when planning budgets and schedules. Business actors can also see the services around them, such as LPH accreditation, LP3H and PPH Companion registration, halal certificate issuance, and facilitation codes.

Limits that need to be understood

It is important to distinguish between fulfilling the system and determining halal status. Business actors implement SJPH and prepare documents. Inspection is carried out by the Halal Inspection Agency. The determination of halalness is the authority of the MUI Fatwa Commission or the Halal Product Fatwa Committee. Certificates are only issued by BPJPH.

This means that properly implementing SJPH is not the same as guaranteeing a product is halal. What business actors can do is ensure that their system, ingredients, and processes are traceable and documented.

What can be prepared starting now

• Map your products and determine whether they fall into the group required to be halal-certified.
• Compile a complete ingredient list with suppliers and their supporting documents.
• Check ingredients whose status depends on the source, especially gelatin, whey and caseinate, animal fat, and glycerin.
• Build process records and a monitoring schedule, not just a one-time file.

Halal regulation ultimately demands a change in the way of working. A business that organizes its ingredients and processes from the start will be better prepared for inspection, and also find it easier to trace problems if they arise.

To organize the five SJPH criteria in a measurable way, IndoHalal.id provides an SJPH platform that helps manage halal policies, ingredient registries, critical points, internal audits, and BPJPH certification readiness in one application.