Halal Regulation in Indonesia after the Establishment of BPJPH Law

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For a Moslem-majority country like Indonesia, one important thing to consider when buying or consuming daily products is to ensure that the products are halal, or in other words, are allowed to use according to the Islamic laws.

For that reason, the Indonesian Government established a new agency to substitute an MUI halal assurance body that brings the advantageous halal certification process.

What Is BPJPH?

In Indonesian, BPJPH stands for Badan Penanggulangan Jaminan Produk Halal (Halal Product Assurance Organizing Agency). Since October 2017, it has been enacted by the Indonesian Government to conduct and authorize halal certification registration and process under the Law number 33 of 2014 about Halal Product Assurance. Although BPJPH acquires its own authority to deal
with halal products certification in Indonesia, the halal provisions of this agency still refer to the written fatwa of MUI.

Due to the fact that Moslems are the majority in Indonesia, the establishment of BPJPH is aimed to increase safety and certainty among them, regarding halal products which are traded within the country. When a certain product has passed the certification process administered by the agency, the product’s halal state is officially guaranteed, thus, given the right and permission to be used by Moslem citizens.

BPJPH Legal Rights

According to the Indonesian Law number 33 of 2014 about Halal Product Assurance and Certification, BPJPH has a number of legal rights to take administrative actions, including registration, testing, and certification process. The actions are conducted in order to certify that the traded products, whether they are imported or produced locally, are halal. The agency’s main authority is to develop and establish detailed policies regarding Halal Product Assurance. These include criteria and standards of halal assurance, the guiding principles of the halal audit, and the procedures of the halal label and certificate registration.

Additionally, the agency has the authority to make information as well as educate publics about halal products that have been granted their certification. BPJPH is also responsible for further actions following the certified process, such as monitoring the product’s halal assurance and building legal cooperation with local and foreign institutions about the implementation of halal label and certification.

The Benefits of the BPJPH Law

One noticeable benefit of the BPJPH Law is that it can be accepted by the international law because the agency’s authorities are registered under the cooperation with foreign institutions. The broad scope of BPJPH certification is obviously an advantage for the companies as they do not need to repeat the certification process for products which are exported to the international market.

The same rule also applies to foreign products which are traded and distributed in Indonesia. If the particular products have obtained halal certification from legal and trusted halal assurance agency in other countries, they only need to be registered as the imported products without having the obligation to conduct testing and inspection process.

Another advantage of the new halal assurance is its validity period. Different from the previous law that gives the certified products a two-year period, the products that are registered to BPJPH has a longer validity period, that is, four years after the certification is published. Therefore, the companies can save their time and budget when they want to extend the certification.

The BPJPH Law, in conclusion, brings a new hope for halal guarantee and assurance in Indonesia. Through the well-administered process, the agency will provide a legal certification for halal products so they can be consumed safely by Moslems.

Bagas is a writer at BP Lawyers Indonesia.

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Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.

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