Date of issue: 19 August 2024
Date of effect: Immediate
Reference Number: MAA2024-32
Related MAAs: MAA2024-28
Attention
- Industries—Industry bodies – Dairy Australia – Infant Nutrition Council, Dairy Export Industry Consultative Committee, Australian Food and Grocery Council
- Dairy Export Establishments
- Department of Agriculture, Fisheries and Forestry: Central and Regional offices
Purpose
This Market Access Advice provides an update on the implementation of Indonesia's Law 33/2014 regarding Halal Product Assurance (the Halal Law).
Summary of key points
Indonesia's Law 33/2014 regarding Halal Product Assurance (the Halal Law) entered into force on 17 October 2019 with a 5–15-year phased implementation period. Agri-food and beverage sectors are impacted by the first phase, with enforcement scheduled for 17 October 2024. The Halal Law imposes new halal certification requirements for all goods exported to Indonesia and impacts services associated with exports i.e. transport and labelling.
The Australian Government is working closely with Indonesia to understand the impacts of the Halal Law and seek further information regarding its implementation. The department will continue to update industry on new requirements as more information becomes available. More information on Indonesia's halal requirements can also be found on the Australian Government Department of Foreign Affairs and Trade (DFAT) website: www.dfat.gov.au/geo/indonesia/complying-indonesian-halal-requirements.
1. Australian Halal Certifying Body (HCB) accreditation with Indonesia
Approval and accreditation by Indonesia's Halal Product Assurance Organizing Body (BPJPH) is required by HCBs seeking to certify halal food and beverage products for the Indonesian market following implementation of Indonesia's Halal Law.
The department understands that to date a total of 18 applications have been received by BPJPH from Australian HCBs seeking accreditation. The list of approved foreign halal certifying bodies eligible to certify products for export to Indonesia under the Halal Law can be found on the BPJPH website (https://bpjph.halal.go.id/search/data_lhln?page=1). Currently, eight Australian HCBs are officially accredited as foreign HCBs by BPJPH. An additional two Australian HCBs were audited in April 2024 and are awaiting results of final assessments by BPJPH prior to accreditation.
BPJPH intend to conduct a third tranche of on-site audits of the remaining eight Australian Halal certifiers who are seeking accreditation prior to the implementation of the Halal Law in October 2024. The department continues to engage with BPJPH for additional information on these audits, including approximate timeframes.
2. Online registration portal
BPJPH Decree 90/2023 sets out the procedures for mandatory registration of imported products certified halal by foreign halal certifying bodies (HCBs) accredited by BPJPH.
The department understands halal certificates issued by BPJPH accredited foreign HCBs are required to be registered in BPJPH's online portal (SIHALAL - https://ptsp.halal.go.id/). This must occur prior to the importation and distribution of products covered by these certificates within Indonesia. Australian exporters will need to ensure their Australian HCB halal certificate has been registered on SIHALAL. This registration is completed by Indonesian importers, not Australian exporters.
The department understands BPJPH will issue one registration number for each halal certificate registered by an importer. This registration number may cover multiple consignments of goods, if they are of the same product type and share the same halal certificate. This registration number is unique to each importer, even if multiple importers register using the same Australian HCB halal certificate from the same Australian exporter. The department understands the importer will be able to download the halal logo material and labels through the SIHALAL portal.
Australian exporters and/or Australian HCBs may be required to supply information to their importer or Indonesian representative as a component of the registration process described above. This information may include:
- Application letter for the registration of an international halal certificate.
- Letter of authorisation to Indonesian importer or representative authorising the applicant to register for their product's foreign halal certificate on their behalf.
- Business license number of the importer and/or official Indonesian representative.
- Copy of the relevant Mutual Recognition Agreement between the Australian HCB and BPJPH.
- Original document of foreign halal certificate OR a copy of the foreign halal certificate that has been legalised.
- List of goods to be imported along with their Harmonised System Codes (HS Codes).
- Statement letter affirming that all documents submitted are valid and legitimate.
The Australian Government is seeking additional guidance from BPJPH on requirements for a halal certificate that has been 'legalised' either by an Apostille or formally by an official from an Indonesian Embassy or Consulate, to ensure Australian exporters can practically comply with Indonesia's requirements.
3. Product certification directly with BPJPH
Exporters can also apply for an Indonesian halal certificate for foreign products directly with BPJPH. The department understands that exporters will require an Indonesian representative or importer in the relevant business area to undertake the application process. At this stage, the department understands halal certificates issued by BPJPH directly will not require registration following issuance.
It is understood that for this process, exporters will need to cover the costs associated with an onsite certification audit conducted by a halal accreditation team assigned by BPJPH. These costs are likely to include but may not be limited to flights, on-ground transport, accommodation, and per diems. Once certified, the product shall have the Indonesian halal label and certificate number placed on the packaging, according to Indonesia's relevant regulations.
4. New halal labelling requirements
Labelling requirements under Indonesia's Halal Law are stipulated in BPJPH Decree 145/2022 and BPJPH Decree 88/2023, which amends earlier decrees. Specific requirements including size, colour and placement of approved halal labels are outlined in these decrees. It is understood that all halal products in Indonesia should display halal labelling according to the new requirements no later than 2 February 2026. The department continues to seek further information from Indonesia regarding new labelling requirementsfor Australian exporters and will update industry as more information becomes available. This includes:
- guidance on transitional arrangements for products entering the Indonesian market after 17 October 2024
- confirmation on acceptance of over-stickering labels by Indonesian importers in market before products are released for sale.
5. Halal supervisor requirements
Under Indonesia's Halal Law (Government Regulation 39/2021), companies seeking to have their products halal certified in Indonesia are required to have a 'Halal Supervisor' that observes and coordinates halal processes within their business. Currently, this regulation also sets out a requirement that this individual must be of the Muslim faith. The Australian Government continues to seek further information from Indonesia on the implications of this announcement on Australian businesses.
6. Announcement by the Indonesian Government on delays to implementation of the Halal Law
The department is aware that in July 2024, the Indonesian Government announced a two-year extension for mandatory food and beverage certification until October 2026 for Indonesian micro and small enterprises. The implementing regulation for this delay is yet to be issued, but Indonesia has indicated that it will only apply to Indonesian companies. For all other companies, including all foreign producers/exporters, there has been no extension to mandatory certification. The Australian Government continues to seek further information from Indonesia on the implications of this announcement on Australian businesses.
7. Australian Government engagement with Indonesia
The Australian Government continues to work collaboratively with BPJPH to negotiate and progress a government-to-government arrangement on halal certification matters. This arrangement aims to include recognition of current Australian halal systems including the Australian Government Authorised Halal Program (AGAHP).
The Manual of Importing Country Requirements (Micor) will be updated to reflect this market access advice. The department encourages users of Micor to subscribe to the Micor update service for a commodity-specific email that lists changes that have been made in the preceding week.
The department encourages all exporters to work with their importer to ensure that product meets the current importing country requirements. Please continue to refer any questions on implementation of the Halal Law to the department via exportstandards@aff.gov.au.
Further information
Contact exportstandards@aff.gov.au if you have any queries.