Foreign Brands Prepare for Halal Certification, Local Cosmetics Poised to Capture Market

Foreign brands need to prepare for halal certification before the mandatory cosmetic certification requirement comes into effect on 18 October 2026. This situation presents an opportunity for local producers who have already met halal requirements to capture market share in Indonesia.

Sutan Emir Hidayat, Director of Sharia Ecosystem Infrastructure at KNEKS and Secretary General of the Indonesian Islamic Economics Association (IAEI), stated that all cosmetic products circulating and traded in Indonesia, including imported products, must comply with halal certification regulations.

According to him, this obligation does not necessarily mean that foreign brands will cancel their plans to enter Indonesia. However, global brands that do not yet possess a halal assurance system may require time to adjust their formulas and production processes.

“Premium global brands that do not focus on the Muslim market might choose to delay their expansion into Indonesia because they are reluctant and need time to change their formulas,” Emir told Republika on Wednesday (2/9/2026).

KNEKS is still awaiting data from analysts regarding the number of brands that are likely to delay or cancel their plans to enter Indonesia. Emir believes that foreign brands still have strong reasons to enter the country, as Indonesia represents a highly potential market.

Amidst this adaptation process, local producers who are already prepared to meet halal requirements have the opportunity to seize market share.

“Local producers who are ready can take over the market share left behind by imported products,” he said.