Mandatory Halal Certification on the Horizon, Business Leaders Propose RI Uses This Strategy
Amid the government’s plans to implement halal certification for numerous industries ranging from cosmetics to textiles, there is a push to develop the halal industry through Special Economic Zones (SEZs). Business leaders see significant opportunities to transform Java into the national centre for halal industry growth, given the readiness of infrastructure and the established industrial ecosystem.
SEZs in Java should be focused on high-value-added sectors to compete in the global market. In this context, the halal industry is seen as having strong appeal, both in terms of domestic demand and exports.
“We see that SEZs on Java Island in the future can be focused on developing high-tech-based industries as well as specific industries that have competitive advantages, such as the halal industry,” said the Chairman of the Indonesian Industrial Estates Association (HKI), Akmad Maruf Maulana, to CNBC Indonesia on Friday (24/4/2026).
Amid growing investor interest in sharia-based sectors, Java is considered to have advantages in terms of a more integrated supply chain, from upstream to downstream industries. Proximity to consumption centres also becomes an important factor that accelerates business turnover.
“With this approach, SEZs will not only become production centres but also centres for innovation and new economic growth,” said Maruf.
The development of the halal industry in Java’s SEZs is not only about food and beverage products but also encompasses other sectors such as pharmaceuticals, cosmetics, and Muslim fashion like textiles. With better logistics infrastructure support, the distribution of halal products becomes more efficient and competitive.
On the other hand, global trends also strengthen these opportunities. Demand for halal products continues to increase, particularly from Middle Eastern countries and Asian regions. This opens up space for Indonesia to play a larger role in the global supply chain, with Java as one of the main production bases.
However, challenges remain. Industry players still face issues with halal certification, availability of raw materials that meet standards, and the need for regulatory harmonisation. Without improvements in these areas, the great potential of the halal industry risks not being optimal.
Business leaders assess that SEZs can be a solution to address these challenges. With incentive schemes, licensing ease, and zone integration, industry players can more quickly meet halal standards while increasing production scale.
In addition, developing halal-based SEZs in Java is also seen as capable of attracting new investments, especially from investors focused on sharia industries. With a more structured ecosystem, Indonesia has the opportunity to strengthen its position as a major player in the global halal industry.
“Synergy between the government, industry players, and zone managers is the main key so that SEZs can provide optimal contributions to inclusive and sustainable national economic growth,” said Maruf.
Mandatory Halal Certificate Regulation
As is known, in Government Regulation (GR) No 42/2024 on the Implementation of Halal Product Assurance in Article 155, it is stipulated that products that must have halal certification are goods including food, beverages, medicines, cosmetics, chemical products, biological products, genetic engineering products, and consumer goods that are used, utilised, or consumed.
As well as services including slaughtering, processing, storage, packaging, distribution, sales, and or presentation.
Furthermore, Articles 160 and 161 of the GR stipulate the phasing of mandatory halal certification implementation.
Here are the details, as quoted from GR No 42/2024, Friday (24/4/2026):
Article 160:
For medium and large business actors, the phasing of the obligation to have halal certification for food products, beverages, slaughter products, and slaughter services starts from 17 October 2019 until 17 October 2024.
For micro and small business actors, the phasing of the obligation to have halal certification for food products, beverages, slaughter products, and slaughter services starts from 17 October 2019 until 17 October 2026.
The obligation for halal certification for food products, beverages, slaughter products, and slaughter services originating from abroad is determined by the Minister no later than 17 October 2026 after considering the completion of mutual recognition cooperation for Halal Certificates.
The determination of the halal certification obligation as referred to in paragraph (3) is carried out after coordination with related ministries/institutions.
Article 161:
- The phasing of the halal certification obligation for products other than those referred to in Article 159 paragraph (2), includes:
natural medicines, quasi-medicines, and health supplements starts from 17 October 2021 until 17 October 2026;
over-the-counter medicines and limited over-the-counter medicines starts from 17 October 2021 until 17 October 2029;
prescription medicines excluding psychotropics starts from 17 October 2021 until 17 October 2034;
cosmetics, chemical products, and genetic engineering products starts from 17 October 2021 until 17 October 2026;
consumer goods in the clothing category, head coverings, and accessories starts from 17 October 2021 until 17 October 2026;
consumer goods in the household health supplies category, household appliances, worship equipment for Muslims, writing instruments, and office supplies starts from 17 October 2021 until 17 October 2026;
consumer goods in the utilised category of class A risk medical devices in accordance with statutory regulations, starts from 17 October 2021 until 17 October 2026;
consumer goods in the utilised category of class B risk medical devices in accordance with statutory regulations,