President Widodo finally signs long awaited government regulation
May 26, 2019 | By Peter Sean Lie
Government Regulation No. 31 of 2019 concerning the implementing regulation of the Halal Law (Law 33/2014) concerning Mandatory Halal Certification was signed by President Joko Widodo on April 29.
The Halal Law, which was released at the end of Susilo Bambang Yudhoyono’s presidency, was considered unfriendly to the business community because of its sweeping provisions. Through a long process of negotiation and discussion, the implementation of the law looks to be more flexible than was initially feared. Some government officials have told AmCham that the intention of the implementing regulation is to be more business friendly and that it should be seen in light of a desire to gently ease into the process.
AmCham Indonesia has been active for several years in discussions with industry, local associations and the government to ensure that the views of our companies are heard in the process. We will continue to monitor developments and remain in a constructive dialogue as further implementing regulations are drafted and issued. We received one of the first copies of the signed regulation.
To read the full regulation in bahasa Indonesia, click here. To read the full regulation in English, click here.
It covers topics including the classification of products to be halal certified, stages in halal implementation, the role of the Halal Product Assurance Organizing Agency (BPJPH) and other related agencies in halal implementation, and international cooperation with overseas halal certifiers.
Products to be halal certified
Under the Halal Law, it seemed that virtually would have to be halal certified. In the regulation, there are classifications of products that must be halal certified. Products that must be certified are divided into two: goods and services.
Goods that must be certified are food, beverages, drugs, cosmetics, chemical, biological, genetically modified, and consumer goods that are worn, used, or utilized by the public and that originate from animal substances. Services that must be halal certified are slaughterhouses, processing, storing, packaging, distribution, selling and display.
Non-halal products can still be sold but they will carry a non halal label.
The regulation emphasizes that the implementation of the Halal law, which is to begin in October, will be done in stages, with food and beverages as the first priority because they are fulfill primary needs and are consumed massively. Many businesses in those sectors are already halal certified.
Drugs, biological products, and medical devices that have non-halal materials and/or processing can still be sold, but business owners must include information about the origin of materials/ingredients.
More details on the timeline of the stages and what kinds of products will be prioritized will be covered by later ministerial regulations. More provisions on drugs, biological products, and medical devices that still have non-halal materials and/or processing will be further regulated by a Presidential Regulation.
Role of Halal Product Assurance Agency (BPJPH) and other agencies
BPJPH, under the Ministry of Religious Affairs, will act as the coordinator of Halal Product Assurance and issues halal certification. Coordination here means the BPJPH will oversee the halal certification process involving many agencies, such as the Indonesian Ulema Council (MUI), halal examination agencies (LPH), halal auditor, and cooperate with international agencies responsible for halal certification.
BPJPH will also be supported by other ministries such as industry, trade, health, agriculture, SMEs, and foreign affairs. The ministries will work hand in hand with BPJPH in their respective areas and sectors.
International cooperation with overseas halal certifiers
Overseas halal certificate issued by overseas halal certifiers cannot yet be recognized in Indonesia until the overseas halal certifiers have a mutual recognition agreement (MRA) with BPJPH. In order to be recognized by BPJPH, overseas halal certifiers must be formed by governments or receive recognition by governments.
The regulation came into effect on the date it was promulgated, May 3, 2019.