Three key industries - food and beverages, cosmetics and pharmacy - are bracing for hefty additional costs and to risk losing trillions of rupiah in margins if the nation presses ahead with new halal certification procedures under a new bill, associations say.<\/p>\n
Under the new halal certification bill, halal certificates and labels will be compulsory - as opposed to voluntary - for these three sectors, not only for all ingredients but also for all equipment used during the production process, meaning new costs.<\/p>\n
The Indonesian Food and Beverage Association (Gapmmi) argues although certification and labeling fees were only Rp 1 million for small and medium enterprises (UMKM) and Rp 2 million for big firms, the bill will have a long-run impact.
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\nGapmmi regulation director Franky Sibarani said Tuesday that these three sectors use a significant amount of imported materials in their production processes.
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\n\u201cSmall and medium enterprises will bear very high production costs as certifications and labels require special product treatment during [the] production process ranging from materials to equipment,\u201d said Franky.<\/p>\n
\u201cEvery [item of] material and equipment has to be verified whether it fits the halal category,\u201d he said, adding that a food and beverage product could have 15 ingredients; every cosmetic and pharmacy product could have 50 to 100 ingredients which were mostly imported. (nia)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/new-halal-bill-draws-ire-from-industries-1251251044", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }