Indonesia, as the world’s largest Muslim-majority country, places significant importance on halal compliance, particularly in the food and beverage (F&B) sector. For foreign investors establishing a Foreign Investment Company (PT PMA) in Indonesia, understanding the halal regulatory framework is not merely a matter of market positioning, but a legal obligation that may directly affect business operations, distribution channels, and consumer trust.
The primary legal basis governing halal products in Indonesia is Law No. 33 of 2014 on Halal Product Assurance (as amended), which mandates that products entering, circulating, and being traded within the territory of Indonesia must be halal-certified if they fall within the scope of mandatory halal categories. The implementing regulations, including Government Regulation No. 42 of 2024, further elaborate on the procedures and requirements for halal certification. These regulations apply equally to domestic companies and PT PMA entities operating in Indonesia.
Under the current regime, halal certification is administered by the Halal Product Assurance Organizing Agency (BPJPH), operating under the Ministry of Religious Affairs. The halal examination process itself is conducted by accredited Halal Inspection Bodies (Lembaga Pemeriksa Halal or LPH), while the halal fatwa determination is issued by the Indonesian Ulema Council (MUI). Only after the issuance of a halal decree (fatwa) by MUI will BPJPH grant the halal certificate. This multi-layered process requires thorough document preparation, ingredient traceability, production flow analysis, and on-site audit.
For F&B businesses, the scope of halal compliance extends beyond the final product. It covers raw materials, additives, processing aids, storage, transportation, packaging, and even the cleaning processes of production facilities. A PT PMA importing raw materials must ensure that such materials are supported by valid halal certificates (if applicable) or other supporting documents demonstrating compliance. Where non-halal materials are used for certain product lines, strict segregation measures must be implemented to prevent cross-contamination.
From a licensing perspective, halal certification is closely linked to the Business Identification Number (NIB) and the applicable Indonesian Standard Industrial Classification (KBLI) registered by the company. In practice, the absence of a halal certificate for mandatory categories may hinder product distribution, cooperation with major retailers, participation in government procurement, and even expose the company to administrative sanctions. Therefore, halal compliance should be addressed at the early stage of business planning, alongside other key permits such as food distribution permits (BPOM or local health office approvals) and environmental approvals.
In conclusion, halal certification in Indonesia is no longer merely a religious or marketing attribute, but a statutory requirement embedded within the national regulatory framework. For PT PMA engaging in F&B activities, proactive compliance with halal regulations is essential to secure market access, maintain consumer confidence, and ensure sustainable business operations in Indonesia’s dynamic and highly regulated food sector.
For further information or assistance in structuring your F&B investment and ensuring full halal compliance, please contact Schinder Law Firm at info@schinderlawfirm.com. Our team will be pleased to support your business expansion in Indonesia with comprehensive and practical legal guidance.
Author:
Dewi Susanti