Indonesian Political, Business & Finance News

Prabowo Orders Halal Certification Deadline Postponed as Maman Outlines Impact on MSMEs

| Source: CNBC Translated from Indonesian | Regulation
Prabowo Orders Halal Certification Deadline Postponed as Maman Outlines Impact on MSMEs
Image: CNBC

Jakarta, CNBC Indonesia — Micro, Small and Medium Enterprises (MSMEs) Minister Maman Abdurrahman said many Indonesian MSME operators have yet to meet the mandatory halal certification requirement. One obstacle is the certification cost, which he said places a considerable burden on businesses.

Maman said the number of halal certifications issued remains far below the target. According to figures he presented, a cumulative 4,432,039 certificates have been issued for business entities, covering around 16 million products.

“This is still a very long way from covering the number of MSMEs in Indonesia. I have to say it is a very long way. It is still a very long way,” Maman said at a press conference at his office in Jakarta on Thursday (22 October 2026).

He acknowledged that many MSMEs are not yet able to meet the requirement. In addition to their readiness, businesses face difficulties financing the certification process.

“It is quite a burden for them, because there are costs involved,” he said.

In response, the government has postponed the mandatory halal certification deadline, which had been set for 17 October 2026, until October 2028. Maman said the decision followed an instruction from President Prabowo Subianto to safeguard the continuity of MSME businesses.

“Because this is about protecting the sustainability and continuity of MSMEs in our country, the President ordered us to postpone the halal requirement. The deadline of 17 October has been moved to 2028. That was the instruction,” he said.

Maman stressed that mandatory halal certification was not a new policy introduced under the Prabowo administration. The requirement, he said, is stipulated by a law enacted in 2014.

He added that the government continues to support implementation of the certification requirement, but said it must take MSMEs’ capacity into account so that the rules do not undermine their business continuity.

“We agree that this law needs to be implemented, but it must not end up becoming a burden for our MSMEs,” Maman said.

The Ministry of MSMEs is discussing possible solutions with the Halal Product Assurance Organising Agency (BPJPH), the Coordinating Ministry for Economic Affairs, associations representing micro and small businesses, and the Indonesian Employers Association (Apindo).

The discussions are intended to find an approach that fulfils the halal certification requirement while easing the burden on businesses. Maman said he could not yet outline the technical steps, as the talks were still at an early stage.

“We are looking for the best formula, a middle ground,” he said.

Maman said the deadline extension was a temporary measure to give MSMEs room to meet the halal certification requirement without facing an excessive burden.

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