Halal Certification for Indonesian MSMEs by 2024 Enhances Trust and Global Reach

The Indonesian government is taking significant steps towards enhancing the competitiveness and compliance of micro, small, and medium enterprises (MSMEs) in the global market, particularly focusing on the importance of halal certification. In a recent statement in Jakarta, Cooperatives and Small and Medium Enterprises Minister Teten Masduki highlighted the dual objective of halal certification: safeguarding the interests of Muslim producers and consumers alike.

“The primary aim of introducing halal certification for MSME products is to ensure the well-being of Muslims, both as entrepreneurs and as customers,” Masduki explained, underlining the government’s commitment to this initiative.

To streamline the certification process, the ministry is set to collaborate closely with various stakeholders, including the Trade Ministry and the Halal Product Guarantee Organizing Agency (BPJPH) of the Religious Affairs Ministry. One of the key challenges identified is the ambitious deadline set for October 2024, which Masduki acknowledges is a daunting target.

To overcome these hurdles, Masduki proposed innovative solutions such as the introduction of a ‘green path’ for MSMEs. This expedited process would allow businesses, whose products are inherently halal due to their raw material composition, to make self-declarations, thus simplifying the procedure for obtaining halal certificates, especially for food product businesses.

Given the dominance of food and beverage ventures within the MSME sector in Indonesia, this initiative is expected to significantly benefit a large number of enterprises. “It’s crucial to remember that the essence of halal certification is to shield Muslims from haram (forbidden) products, and a substantial portion of our MSME community are Muslim,” Masduki added, emphasizing the societal and economic importance of this move.

Siti Aminah, the Head of the Halal Registration and Certification Center of the BPJPH, further detailed that all food and beverage products need to be certified halal by October 18, 2024. The BPJPH, along with other relevant bodies, is dedicated to assisting MSMEs in navigating the certification process. This support includes offering halal certificates at no cost under certain conditions, aiming to make this essential service accessible to all eligible enterprises.

This policy not only aims to align Indonesian products with international halal standards but also seeks to boost the economic growth of MSMEs by opening up new markets and increasing consumer trust in their products. As Indonesia strives to position itself as a leader in the global halal industry, the concerted efforts of the government and its partners in supporting MSMEs through this transition are a testament to the country’s commitment to economic inclusivity and religious considerations.