09
april-may. 2019 | @Halal
Indonesia has passed Law No. 33/2014
on halal product assurance in October
2014, which requires all products to
be certified halal in 2019.
Key Halal Muslim Markets — 652 million
Algeria Iran Lebanon Qatar Turkey
Bahrain Malaysia United Arab Emirates
Iraq
Saudi Arabia
Egypt Jordan Morocco Syria
Indonesia Kuwait
Oman
Yemen
Tunisia
Indonesia streamlines
halal certification
through agency
World Muslim Population (Millions
Continent
World Population
in 2006
Africa
West Asia
Muslim Population
in 2006
923.2
Muslim
Percentage
442.88 47.97
3970.5
1060.65
Europe 731.7
26.71
50.7 6.93
North America 331.7 7.13 2.15
South America 566.05 3.08 0.54
Oceania 33.54
Total
6313.78
0.60 1.79
1565.28 24.79
Sources: Statistica.com, Salaam Gateway, Mihas Report
Purchasing Power of the Muslim Countries
Muslim
Population
(Million, 2005)
Per capita food
expenditure
(p/a US$)
Halal Food
Market
(Millions US$)
Africa 461.77 250 115,443
West Asia 195.00 570 111,150
South Central Asia 584.80 300 175,440
Southeast Asia 266.37 350 93,230
China 39.10 Europe (incl Russia) 51.19 1,250 63,988
North America 8.26 1,750 14,455
South America 1.64 500 820
Oceania 0.35 1,500 525
Total
1,565.00
175 5,865
– 580,915
Source: http://www.islamicpopulation.com
establishments across 50 countries.
The growth has been attributed to the
digital boom and increasing discretionary
income of young Muslims. One of the findings
from the Crescent Rating report shows that
46% of Muslim millennials travel two to five
times a year for the length of four to six days
per trip.
Japan, South Korea, Taiwan, Spain and
South Africa are some of the countries that are
trying to be attractive to the Muslim segment
as it is projected that 156 million Muslim
travellers will be in the market by 2020.
Gaining interest
in halal products
Currently, the global halal market has gained
its attention from the trade merchant world.
Many Halal Expos had been held around the
world, for example in Malaysia, Singapore,
Turkey, Dubai-UAE and Iran.
E-commerce and online business portal
had been proved to be one of the best
e-business solutions to penetrate the emerg-
ing market. However, not much e-commerce
portal either by government or private sector
focusing on the halal market has being seen
in the halal trade market.
Currently, the most well-known and
largest halal business portal in the world
supported by the Malaysian government is
DagangHalal.com. The platform is currently
taking on the mission to propagate Malaysia
as the ‘Global Halal Hub’ and integrating
the manufacturers, importers, exporters,
distributors and halal service providers into
the global halal industry.
The halal industry is growing steadily, and
Malaysia is
one of the
most suitable
example
of halal
certifications
granted to
not just food
products.
Cosmetics and
pharmaceutical
products are
among that
looks for halal
certification."
it is gaining traction among industry players
worldwide. The inclusiveness of the industry
which can be integrated into all sectors makes
opportunities virtually endless, and makes for
an attractive niche for companies to invest in.
Moving forward, the halal industry is
expected to continue on this path as it garners
more attention and exposure.
There are 1.8 billion Muslims around the world, amounting to
around 27 percent of the global population. The Muslim population
around the world collectively supports halal product market, which
is currently valued at more than US$2.3 trillion according to the
Emirates Authority for Standardization and Metrology (ESMA).
Indonesia has passed Law No. 33/2014 on halal product assurance
in October 2014, which requires all products to be certified halal in
2019. This law also created the Halal Certification Agency (BPJPH) to
oversee the process and provide ongoing certification for products.
This means that even non-halal products have to go through
the rigorous process. BPJPH has a number of legal rights to take
administrative actions, including registration, testing, and certifica-
tion 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.
The agency
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 prod-
ucts certification in Indonesia, the halal provisions of this agency
still refer to the written fatwa of MUI.
Due to the fact that Muslims are the majority in Indonesia, the
establishment of BPJPH is aimed to increase safety and certainty
among them, specifically in regards to 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 Muslim citizens.
BPJPH’s vision and mission is to increase consumer awareness
of halal products. The agency wants to give consumers a guarantee
of whether products are Halal. For products that are 100 percent
halal, they will be labelled halal. If they are not halal, then BPJPH will
want to make sure that people know it by having a non-halal label.
It is impossible to certify all products to be halal so the ones that
are clearly non-halal (such as pork) will also be labelled non-halal.
One noticeable benefit of the BPJPH Law is that it can be accepted
by international law due to the agency’s authority as 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 applies to all
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 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 prod-
ucts 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 guar-
antee and assurance in Indonesia. Through the well-administered
process, the agency will provide a legal certification for halal prod-
ucts so they can be consumed safely by Muslims.