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Indonesia Extends Halal Certification Deadline for MSMEs to 2026

20 May 2024 15:49 WIB

Halal illustration. Shutterstock

TEMPO.CO, Jakarta - The government has decided to postpone the deadline for mandatory halal certification for MSMEs. Originally set for October 17, 2024, the deadline has now been changed to 2026.

In an official statement after a limited meeting with President Joko Widodo at the Presidential Palace on May 15, Coordinating Minister for Economic Affairs Airlangga Hartarto said the reason for the postponement was that the number of halal certification obligations had not yet reached the target and was unlikely to be completed by October next year.

"The implementation of halal certification obligations has not yet reached the target, where there are still many MSME products that have not been certified," the minister said.

He said medium and large companies still have to complete their halal certification obligations by Oct 17, 2024 at the latest. Meanwhile, MSMEs will be given additional time until October 17, 2026.

From 2019 to May 15, 2024, the Halal Product Guarantee Organizing Agency has issued halal certificates for 4,418,343 products, only 44.18 percent of the 10 million target products. Meanwhile, Indonesia has a total of 28 million SME units.

"Therefore, Mr. President decided that the implementation of [mandatory halal certificates] for MSME food and beverages will be postponed - not until 2024, but until 2026. This postponement also applies to traditional medicines, herbs, cosmetics, accessories, household goods, and various medical devices.

Halal Certificates in Indonesia; A Brief History

In 1988, the news that food containing pork was freely circulating in the market caused consumers' purchasing power to decline and affected economic stability. This prompted the government to consider the urgency of halal certification to cater to the majority of Indonesians who are Muslims.

The first halal certification was conducted by the Indonesian Ulema Council (MUI) in 1989, while the halal labeling of food products in Indonesia was started by the Ministry of Health in late 1976. Then, on November 10, 1976, all food and beverages containing pork or its derivatives had to indicate that the product contained pork.

To date, the obligation to provide halal certification for food, beverages, slaughter products and slaughter services has been regulated in Government Regulation No. 39 of 2021 on the Implementation of Halal Product Guarantee Sector.

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