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[BUSINESS] · Indonesia · 15 sources

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Indonesia prepares for mandatory halal certification mandate

Indonesia is preparing for the mandatory implementation of halal certification, set to take effect on October 18, 2026. To support this transition, the Ministry of Trade and the Halal Product Assurance Organizing Agency (BPJPH) have signed a cooperation agreement to strengthen supervision and guidance in the trade sector.

Government officials, including the Ministry of Industry, view this mandate as a strategic opportunity to boost the competitiveness of national products in both domestic and global markets. The halal ecosystem is noted for its significant economic potential, with contributions estimated at 27 percent of Indonesia's GDP, or approximately Rp4,900 trillion.

To assist small businesses, the government is providing free halal certification through a self-declaration scheme for eligible micro and small enterprises (UMK). Additionally, the 13th Indonesia Sharia Economic Festival (ISEF) 2026 is currently underway, providing a platform for over 1,000 halal industry players to connect.

However, the policy faces criticism from various sectors. Tourism and retail industry leaders have expressed concerns regarding supply chain readiness and the potential for increased production costs. Some analysts warn that the mandate could place a heavy financial burden on small businesses and impact household purchasing power if not managed effectively.

Entities

Agency for Industrial Service Standardization and Policy · Ahmad Haikal Hasan · BPJPH · Badan Penyelenggara Jaminan Produk Halal · Bank Indonesia · Emmy Suryandari · GIPI · Indonesia · Kementerian Perdagangan Republik Indonesia · Kementerian Perindustrian · Ministry of Industry of Indonesia · Muhammad Sarmuji

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