Indonesian Political, Business & Finance News

Association Responds to Allegations of Illegal Fees in Halal Certification

| Source: TEMPO_ID | Regulation
The Indonesian Halal Inspection Bodies Association (ALPHI) has denied accusations of illegal fee collection in the halal certification process. ALPHI Chairwoman Elvina A. Rahayu stated that every process and fee charged to business operators is based on regulations set by the government.

"Every process and fee charged to business operators is based on regulations set by the government," Elvina said, as quoted from the MUI Digital website on Monday, 15 February 2026.

The allegations of illegal fees in halal certification surfaced during a meeting between the Halal Product Assurance Agency (BPJPH) and the House of Representatives (DPR) some time ago. The meeting raised questions about halal certification costs for small businesses, including street-cart martabak vendors.

The alleged illegal fees reportedly ranged from Rp 300,000 for small enterprises and Rp 600,000 for medium enterprises, with a figure of Rp 1.3 billion also mentioned.

Elvina said the accusations were baseless. She explained that Halal Inspection Bodies (LPH) are one of three official entities in the regular halal certification scheme as mandated by the Halal Product Assurance Act. The other two entities are BPJPH and the MUI Fatwa Commission.

"LPH is not an entity operating outside the system. LPH is an institution regulated by law, accredited and supervised by BPJPH," she said.

Within the national halal certification ecosystem, the regular certification scheme currently accounts for approximately 1.8 per cent, whilst the remaining 98.2 per cent is certified through the self-declare (SD) scheme. Although the two schemes differ in terms of process, inspector capacity, and inspection complexity, both produce the same output — a halal certificate.

To operate, an LPH must undergo an accreditation process by BPJPH. Requirements for halal auditors, inspection standards, and fee structures are also determined by BPJPH. This includes the basis for service and operational fee determination as regulated in BPJPH Head Decree Number 22 of 2024.

Elvina said that if there are suspected violations by an LPH, the appropriate mechanism is clarification and supervision in accordance with prevailing regulations, not blanket public accusations.

"Decisions can range from warnings to revocation of accreditation. However, it is not appropriate to immediately generalise the accusations as illegal fees by LPH," she said.

She explained that within the regular halal certification fee scheme, there is a public service fee (BLU) component that constitutes BPJPH revenue per business operator and per product category. For micro and small enterprises, the BLU is set at Rp 300,000; for medium enterprises at Rp 5 million; and for large enterprises at Rp 12.5 million per product category.

Meanwhile, inspection fees by LPH comprise several components in accordance with BPJPH Head Decree Number 22 of 2024, including audit fees, operational costs, daily allowances, transport, accommodation, and airfares where necessary.

The fee amounts are highly dependent on business scale, the number of production sites or outlets, and whether the location is within or outside the city. Elvina provided a cost simulation for non-restaurant businesses.

For production sites within the city, costs for micro and small enterprises range from Rp 1.79 million to Rp 2.93 million. For medium enterprises, the range is Rp 19.51 million to Rp 40.30 million, whilst large enterprises face costs of Rp 27.86 million to Rp 48.28 million.

For production sites outside the city, costs are higher due to additional operational expenses such as transport and accommodation. Under these conditions, micro and small enterprises may be charged Rp 4.67 million to Rp 17.05 million; medium enterprises Rp 23.15 million to Rp 66.09 million; and large enterprises Rp 31.13 million to Rp 74.07 million. "Costs will also increase if there is more than one production site," she said.

She noted that if there are inspection fees of around Rp 5 million, this is still reasonable — for example, for a micro or small enterprise located outside the city.

"Likewise, fees above Rp 10 million are generally associated with medium or large enterprises, or businesses with more than one location," she said.

Elvina added that business operators may also incur other costs outside the LPH inspection process, such as halal provider training, halal slaughterman training (specifically for abattoirs), laboratory testing where required, and consultancy fees if using consultant services.

Furthermore, she said all LPH inspection fees are entered into the SIHALAL system. The amounts cannot exceed the limits set by BPJPH.

Payments are made to the BPJPH account, not directly to the LPH. The funds are only forwarded to the LPH approximately 30 days after the halal certificate is issued.

"In fact, this mechanism requires LPH to bear operational costs upfront. So the accusation that LPH is profiting outside the rules is entirely baseless," Elvina said.

Elvina expressed regret at the emergence of statements that cornered LPH without prior clarification. According to Elvina, if there are documents alleged to be evidence of illegal fees, they should be confirmed directly with the relevant LPH to ascertain whether there has been a violation of Head Decree Number 22 of 2024.

"LPH feels aggrieved by accusations that were never confirmed with us," she said.

BPJPH Head Haikal Hassan had previously stated his readiness to take firm action against any LPH operatives found to be collecting illegal fees in the halal certification process from business owners, particularly micro, small, and medium enterprises.

"To this day, there are still individuals from LPH who exploit loopholes to charge unreasonable fees. If there is strong data and evidence, we will take firm action against these illegal fee practices," Haikal said, as quoted from an official BPJPH statement on Tuesday, 11 February 2026.

Haikal disclosed that he had received direct reports from business operators complaining about the high costs of obtaining halal certification.

One such report came from a community of warteg (Tegal-style eatery) operators in Jakarta, who claimed they were asked to pay up to Rp 10 million to obtain a halal certificate.
View JSON | Print