Blab Business
Indonesia Sets October 2026 as Deadline for Mandatory Halal Certification, Aiming to Boost Global Market Share
On 18 October 2026, Indonesia will enforce a sweeping mandate that requires a wide array of products—from food and cosmetics to chemicals and pharmaceuticals—to carry halal certification. The move, the government says, will turn Jakarta’s nation from the world’s largest Muslim consumer into a major halal exporter.
The policy builds on Law No. 33 of 2014 on Halal Product Assurance and is reinforced by Government Regulation No. 42 of 2024. Medium‑ and large‑sized enterprises must have certification by October 2024, while micro‑ and small‑enterprises (MSEs) and imported goods have until October 2026 to comply.
The Halal Product Assurance Agency (BPJPH) is the sole body overseeing certification, inspection and facilitation. BPJPH has launched a free certification program called SEHATI, which is expected to issue 1.35 million certificates in 2026—up from 1 million in 2025. The agency has also deployed more than 11,000 Halal Product Process Facilitators to guide businesses through the application process.
"Halal is no longer a purely religious label; it signals transparency, accountability and consumer trust," BPJPH head Ahmad Haikal Hasan said. He added that the label is increasingly viewed worldwide as an indicator of quality and safety, comparable to international hygiene standards.
Indonesia ranks third in the global halal industry ecosystem, behind Malaysia and Saudi Arabia, according to the State of the Global Islamic Economy Report. Yet the country’s halal exports have not yet reached their full potential. In the first ten months of 2024, Indonesia’s halal product exports recorded a surplus of US$29.09 billion, with total exports reaching US$41.42 billion, largely driven by processed food.
Several challenges have limited market penetration. Upstream supply chains are a major hurdle: many MSEs buy raw materials—meat, seasonings, and other ingredients—in bulk from traditional markets where products are often unpackaged, unbranded and lack a clear halal status. Downstream certification therefore does not guarantee upstream compliance.
To address this, the government is calling for an accelerated certification process for raw‑material suppliers, the development of halal‑certified distribution hubs, and the integration of traceability systems that span from producer to consumer. A few institutions have begun moving in this direction, but their reach remains limited.
Imported products pose another obstacle. BPJPH has signed a memorandum of understanding with the Indonesian Quarantine Agency (Barantin) to integrate halal oversight at entry points. Trial inspections are underway in key trading partners such as Thailand, Malaysia, Vietnam, China and South Korea, aiming to curb products with unilateral halal claims that lack adequate verification.
Building an effective cross‑institutional oversight system will require robust technological integration and bureaucratic coordination—areas that have historically been weak in policy implementation.
The October 2026 deadline marks a strategic shift in Indonesia’s economic identity. By embedding halal certification throughout the national production system, the country hopes to move from being the world’s largest Muslim population to becoming a trusted source of halal products.
The policy’s phased implementation reflects the complexity of the supply chain and the need for mutual recognition agreements with trading partners. Importers of food, beverages, cosmetics, medicines, chemicals, biological products, genetically modified products and consumer goods will need to secure halal certification by 17 October 2026.
In summary, Indonesia’s mandatory halal certification policy is a comprehensive effort to strengthen the halal ecosystem, address upstream supply‑chain gaps, enhance import oversight, and position the country as a competitive player in the global halal market. The next months will see businesses, regulators and industry stakeholders working to meet the 2026 deadline, while the government monitors compliance and prepares for the policy’s full rollout.
The policy builds on Law No. 33 of 2014 on Halal Product Assurance and is reinforced by Government Regulation No. 42 of 2024. Medium‑ and large‑sized enterprises must have certification by October 2024, while micro‑ and small‑enterprises (MSEs) and imported goods have until October 2026 to comply.
The Halal Product Assurance Agency (BPJPH) is the sole body overseeing certification, inspection and facilitation. BPJPH has launched a free certification program called SEHATI, which is expected to issue 1.35 million certificates in 2026—up from 1 million in 2025. The agency has also deployed more than 11,000 Halal Product Process Facilitators to guide businesses through the application process.
"Halal is no longer a purely religious label; it signals transparency, accountability and consumer trust," BPJPH head Ahmad Haikal Hasan said. He added that the label is increasingly viewed worldwide as an indicator of quality and safety, comparable to international hygiene standards.
Indonesia ranks third in the global halal industry ecosystem, behind Malaysia and Saudi Arabia, according to the State of the Global Islamic Economy Report. Yet the country’s halal exports have not yet reached their full potential. In the first ten months of 2024, Indonesia’s halal product exports recorded a surplus of US$29.09 billion, with total exports reaching US$41.42 billion, largely driven by processed food.
Several challenges have limited market penetration. Upstream supply chains are a major hurdle: many MSEs buy raw materials—meat, seasonings, and other ingredients—in bulk from traditional markets where products are often unpackaged, unbranded and lack a clear halal status. Downstream certification therefore does not guarantee upstream compliance.
To address this, the government is calling for an accelerated certification process for raw‑material suppliers, the development of halal‑certified distribution hubs, and the integration of traceability systems that span from producer to consumer. A few institutions have begun moving in this direction, but their reach remains limited.
Imported products pose another obstacle. BPJPH has signed a memorandum of understanding with the Indonesian Quarantine Agency (Barantin) to integrate halal oversight at entry points. Trial inspections are underway in key trading partners such as Thailand, Malaysia, Vietnam, China and South Korea, aiming to curb products with unilateral halal claims that lack adequate verification.
Building an effective cross‑institutional oversight system will require robust technological integration and bureaucratic coordination—areas that have historically been weak in policy implementation.
The October 2026 deadline marks a strategic shift in Indonesia’s economic identity. By embedding halal certification throughout the national production system, the country hopes to move from being the world’s largest Muslim population to becoming a trusted source of halal products.
The policy’s phased implementation reflects the complexity of the supply chain and the need for mutual recognition agreements with trading partners. Importers of food, beverages, cosmetics, medicines, chemicals, biological products, genetically modified products and consumer goods will need to secure halal certification by 17 October 2026.
In summary, Indonesia’s mandatory halal certification policy is a comprehensive effort to strengthen the halal ecosystem, address upstream supply‑chain gaps, enhance import oversight, and position the country as a competitive player in the global halal market. The next months will see businesses, regulators and industry stakeholders working to meet the 2026 deadline, while the government monitors compliance and prepares for the policy’s full rollout.
