Mandatory Halal Certification by October: Self-Declare Scheme Needs Oversight

Indonesia's upcoming mandatory halal certification, set to take effect in October 2026, necessitates enhanced supervision of the self-declaration system, particularly for micro and small enterprises (UMK). This scheme, which allows businesses to self-certify product halal status using simple materials and guidance from a Halal Product Process Assistant (PPH) without a formal audit by a Halal Inspection Agency (LPH), is viewed as potentially risky.

"The risks of certification based on self-declaration include assessment errors (human error), dishonesty from business actors, and leniency without inspection and audit," stated A Hakam Naja, an economist at INDEF. To mitigate these risks, Naja advocates for regular evaluations and periodic checks of products certified through this pathway. Random inspections are crucial to ensure the certification process remains credible and to bolster public confidence.

The heightened scrutiny comes as the government prepares to enforce the halal certification obligation for UMKs, certain other products, and imported goods by October 17, 2026, as stipulated by Government Regulation No. 42 of 2024. Naja highlighted that certification readiness remains a significant challenge, with only about 4% of business actors currently having halal-certified products.

To accelerate the certification process, Naja suggested supporting digitalization for faster and more efficient registration, status tracking, and certificate validation. However, obstacles persist, including the digital literacy of UMK actors, complex bureaucracy, and a shortage of halal auditors. These issues are compounded for imported products and high-tech items like pharmaceuticals, medical devices, biologics, and cosmetics. Naja emphasized that strengthening oversight and the certification ecosystem is vital to ensure the halal obligation leads to more than just administrative compliance, thereby maintaining consumer trust in the products available in the market.

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The risks of certification based on self-declaration include assessment errors (human error), dishonesty from business actors, and leniency without inspection and audit.