Halal Law Update

Draft implementing regulation finalized

By Gilang Ardana
Friday, May 18, 2018

We have learned that the draft implementing regulation (PP) on the 2014 Halal Law was finalized in a recent meeting led by Vice President Jusuf Kalla on April 30, 2018. The draft PP is now with the State Secretariat and is expected to be signed soon by all line ministries and the president.

In the final draft, the ministries have agreed to a phased implementation of the Law on mandatory halal certification that emphasizes “flexibility,” according to one official. The first phase will include food in the form of meat products and beverages; the second phase will be non-meat foods; the third stage will be pharmaceuticals and other products. There is no fixed deadline for the various stages to be implemented, although the first phase is expected to be introduced in October 2019. There are also no sanctions for not receiving certification, an official told AmCham. Non-certified products will still be able to be sold in Indonesia, an official said.   

Phased implementation was previously deleted from earlier versions of the draft PP, but was reinstated because the government sees staged implementation as important given the large number of products covered under the Law and the need to avoid economic disruption.

There will be further ministerial regulations to implement the law but the office of Vice President Jusuf Kalla has been charged with overseeing the process, an official said. There are no full details yet on exactly how the phasing will be applied. Pharmaceuticals, while covered under the Law, will be able to be sold regardless of certification if there are no Halal versions of a product available. “Life-saving” drugs will be exempt from certification and the term will be defined at a later date.

AmCham will continue to monitor this closely and inform our members on further developments on this issue.

 

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