In a surprising move, Coordinating Minister for Economic Affairs, Airlangga Hartarto, announced the postponement of the #WHO2024 (Mandatory Halal October 2024) deadline for micro and small enterprises (MSMEs) in the food and beverage sector with low-risk products eligible for self-declaration. This delay, extending the deadline to 2026, aims to provide businesses more time to adhere to halal certification requirements, including those for raw materials, additives, and processing aids. The announcement followed an internal meeting on accelerating mandatory halal certification and the progress of the Government Regulation draft related to the Halal Product Guarantee in Jakarta on May 15th, 2024.
According to the Coordinating Ministry for Economic Affairs, BPJPH has issued halal certificates for only 4,418,343 products since 2019, just 44.18% of the target of 10,000,000 products. With approximately 28 million MSMEs in Indonesia, President Jokowi’s decision to extend the mandatory halal certification deadline to 2026 demonstrates the government’s commitment to ensuring a smooth transition for businesses without disrupting their operations.
“This aligns with the mandatory halal certification for traditional medicines, herbal products, cosmetics, accessories, household items, and various medical devices by 2026. The requirement for MSMEs has also been shifted to 2026,” stated Airlangga.
Reacting to this decision, LPPOM Director Muti Arintawati expressed that many stakeholders, particularly those concerned about the future of MSMEs, will feel relieved. Recognizing the vast number of businesses and the limited time until October 2024, she acknowledged the challenges MSMEs would face in meeting the deadline, potentially jeopardizing their sustainability. However, she cautions that this extension should not breed complacency. Intermediate programs and strict targets must be established to ensure businesses do not delay in obtaining halal certification. Extensive socialization efforts will be crucial to achieve this.
LPPOM emphasizes that prioritizing mandatory halal categories should consider not only business scale but also product criticality. If a critical product serves as a raw material for other products, its widespread use must be taken into account.
“We need to address the root of the issues. The focus should not be solely on the business scale within the MSME sector but also on businesses supplying critical materials used in other industries, regardless of their size. The supply of food and beverage-related materials and services involves both large/medium and small/micro businesses,” Muti explained.
For example, meat availability from Animal/Poultry Slaughterhouses is crucial, as meat and its derivatives are used in various culinary products. Not all slaughterhouse products are produced by medium and large businesses; many come from small and micro slaughterhouses, including traditional and individual slaughtering in markets and residential areas. The extension of such MSMEs with a vital role in the halal supply chain would hamper the availability of halal meat, hindering halal certification of businesses using meat.
Additionally, many MSMEs offer repackaged products (in small quantities) for spices and baking ingredients (including imported ingredients). They also operate services related to food and beverage, such as trading goods and grinding.
“Ensuring the availability of halal materials and services will make it easier for MSMEs to produce halal food and beverage end products. It’s like a domino effect. If upstream issues are resolved, most halal product issues in Indonesia will also be resolved. The halal certification process will be easier, and the halal guarantee can be more accountable,” Muti Arintawati explained.
Therefore, LPPOM urges the government to focus on solving halal issues in the upstream sector first, whether produced by large, medium, or MSMEs. As a Halal Inspection Agency (LPH) accredited by BPJPH, LPPOM is ready to support the government in successfully implementing the mandatory halal regulations to achieve Indonesia’s goal of becoming a global halal economy. LPPOM’s concrete actions to support this goal are manifested in various programs.
One such initiative is the annual Syawal Festival, which demonstrates LPPOM’s commitment to MSMEs. This year, LPPOM facilitated independent regular halal certification for 125 MSMEs, 85 of which come from 5 Super Priority Destinations (SPDs). These include 42 MSMEs in Labuan Bajo, 10 in the Lake Toba area, 8 in the Borobudur area, 6 in the Likupang area, and 20 in the Mandalika area. Another 40 are spread across various provinces in Indonesia.
“This number is indeed tiny compared to the target and the number of MSMEs spread across Indonesia. However, through the Syawal Festival, we believe LPPOM can be a catalyst that will accelerate the growth of the halal industry in Indonesia,” Muti Arintawati concluded.
About LPPOM
LPPOM MUI was formed based on a mandate from the government/state for the Indonesian Council of Ulama (MUI) to mitigate pork fat cases in Indonesia in 1988 actively. LPPOM MUI was founded on January 6, 1989, to conduct halal inspection and certification. LPPOM MUI became the first Halal Inspection Body (LPH) through the Decree of the Head of the Halal Product Assurance Agency (BPJPH) Number 177 of 2019. In 2024, LPPOM MUI received BPJPH accreditation as the Main LPH, the highest level of LPH with a scope of work both domestically and internationally. The scope of LPPOM MUI is among the most diverse among other LPHs. This shows the professionalism of LPPOM’s work and the quality of services offered from the culmination of 35 years of experience and competent human resource support.
LPPOM MUI continues to demonstrate its credibility as a Halal Inspection Body at the national and international levels. In 2017 and 2018, LPPOM MUI obtained the SNI ISO / IEC 17025: 2008 Accreditation Certificate for Halal Laboratories and SNI ISO / IEC 17065: 2012 and DPLS 21 for Halal Certification Institutions from the National Accreditation Committee (KAN). This standard is recognized in Indonesia and by the United Arab Emirates Accreditation Body (ESMA). The certification and halal assurance systems designed and implemented by LPPOM MUI have also been recognized and adopted by foreign halal certification institutions, which now reach 45 institutions from 26 countries.
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