According to the Ministry of Domestic Affairs, 241,7 million Indonesians, or 89.02% of the country’s total population, identify as Muslims as of June 2024. Under the State of the Global Islamic Report 2023/2024, Indonesia’s halal industry is also ranked third worldwide, behind Malaysia and Saudi Arabia. These factors alone can create significant potential for Indonesia to lead the global halal industry. However, this potential remains largely untapped.
As of May 2024, with the government’s target of 10 million halal-certified products, only around 4 million—representing approximately 40% of the target—have been certified. In response, the government recently postponed the mandatory certification deadline to 2026 specifically for micro, small, and medium enterprises (“MSMEs”) in certain sectors to provide flexibility, while the phased implementation period for non-MSME sectors remains unchanged. Such development under the renewed government regulation will be discussed in more detail below.
This client alert also provides a practical overview of Indonesia’s halal certification process and key insights to enhance enforcement and accessibility for business, aiming to remain competitive in an increasingly halal-conscious market.
Please refer to the following link for further details on our client alert regarding Halal Certification
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