In Indonesia, both domestically manufactured and imported cosmetics shall be notified before circulated on the market. To apply for notification the applicant shall register with BPOM firstly and then fill out and submit a form of notification template online. Prior to notification, cosmetic manufacturers must obtain a production license while importers must have an importer identification number (API). SKI Post Border is also necessary for imported cosmetics to enter into the Indonesian territory after getting the approval of notification.
Halal cosmetics are also a feature of the Indonesian market, because this country is a primarily Muslim country. Sale of halal cosmetics requires a Halal certificate. There is a complicated procedure to apply for this certificate.
Part 1 Regulatory Framework and Competent Authority
1 Existing Main Cosmetic Regulations in Indonesia
2 Competent Authority
The Agency for Drug and Food Control (BADAN POM) is the competent authority in Indonesia to regulate cosmetics, it is the agency to issue cosmetic regulations and grant cosmetic production license and cosmetic notification before market entry.
The Halal Product Guarantee Agency (BPJPH) is the authority which regulates HALAL cosmetics and issue HALAL Certificate enterprise looking to enter the HALAL market in Indonesia.
Part 2 Cosmetic Products
In Indonesia, cosmetics are products that are intended for use on the outside of the human body (epidermis, hair, nails, lips and external genital organs), teeth and oral mucous membranes, primarily to cleanse, fragrance, alter the appearance and/or improve body odor or protect or maintain the body in good condition. (click to see all types of cosmetic products)
2 Manufacturer Obligation
2.1 Production Licenses
In Indonesia, the manufacturer must obtain a "production license" before manufacturing cosmetics. Production License is a permit which must be owned by cosmetics factories to perform cosmetic manufacturing activities. The production license is valid for 5 years, and may be extended as long as they comply with regulations.
Production license is divided into two categories by cosmetic categories and types:
Class A Production License grants rights to manufacture all forms and types of cosmetics
Class B Production License grants restricted rights confined to manufacture cosmetics listed in the following table without conditions, and prohibit manufacturing 1) Cosmetics used for babies; 2) Cosmetics used around the eyes, oral cavity, and / or other mucous membranes; 3) Cosmetics contain functional ingredients such as anti-acne, skin whitening, sunscreen, chemical peeling, hair dyeing agents; 4) Cosmetics that require complicated technologies during the manufacturing process, such as aerosols and compact powders.
|No.||Cosmetic Forms||Cosmetic Types||Cosmetic Categories|
b. Viscous liquidc. Suspension
b. Gelc. Pomade
c. Mangird. Bath salts
a. Bar soap
b. Shampoo bars
c. Deodorant stick
d. Spicese. Cold powder
If cosmetic manufacturers with class B license wants to manufacture cosmetics which are neither prohibited for class B and are not listed on the above positive list, the manufacturers should submit a safety assessment of the cosmetic before manufacture.
To obtain Class A production License, a cosmetic manufacturer should fulfil the following requirements:
Have a pharmacist as the responsible party;
Have production facilities for products to be manufactured;
Have laboratory facilities;
Have GMP qualification
To obtain Class B production license, a cosmetic manufacturer should fulfil the following requirements:
Have at least one pharmaceutical technical personnel in charge;
Have production facilities with simple technology for products to be manufactured;
Able to provide appropriate hygiene and sanitation documentation in accordance with GMP.
2.2 GMP (Cara Pembuatan Kosmetika yang Baik in Indonesian, CPKB)
Manufacturers of Class A must ensure their compliance with the Guideline for Cosmetic Good Manufacturing Practice 2019 (GMP) and manufacturers of Class B must comply with the hygiene and sanitation requirements in accordance with the GMP. The competent authority will conduct corresponding inspections on the compliance status within 7 working days after receiving the application of a production license.
Manufacturers who implement the GMP are able to apply for a certificate online. The GMP certificate is valid for 5 years. The procedures are as follows:
1. Business actors apply GMP certificate and upload required documents through BPOM integrated with the OSS system
1) Administrative documents
|2) Technical documents in the form of appropriate quality system documents in accordance with GMP|
2. BPOM conducts audits and evaluations of documents within 35 working days. Based on evaluation results, BPOM issues GMP certificate if the business actors comply with the requirements and submit GMP certificate through the OSS system no later than 1 working day.
If the business actors do not meet the requirements, rejection decision will be conveyed though the OSS system no later than 1 working day.
3 Importer Obligation
3.1 Importer Identification Number (Angka Pengenal Importir in Indonesian, API)
API is an identification as an importer. Individuals or enterprises are permitted to conduct import activities in Indonesia only after obtaining the API. There are two types of API:
General API (API Umum in Indonesian, API-U)
Manufacturer API (API Produsen, API-P)
API-U is granted to companies that import goods for trading purpose while API-P is for companies that import goods for their own internal use, e.g. raw materials, production machinery or other materials to be further processed or used for the production. API-P can import finished cosmetics only when they serve as complementary goods.
Each importer can only have 1 type of API. The API applies to every import activity in Indonesia and is valid as long as the importer is still import goods
3.2 SKI Border and SKI Post Border
Importers of cosmetic ingredients are required to obtain an import certificate (SKI Post Border) either before or within seven days after the goods are released from the customs area. Importers of cosmetic products must obtain an import certificate (SKI Border) prior to the release of goods from the customs area. Furthermore, imported cosmetics must have a remaining shelf life of at least 1/3 when entering Indonesia.
To apply for the SKI Border or SKI Post Border, the applicant shall register with BPOM with the following documents to obtain a username and password:
Original application letter signed by the director or the proxy of board of directors
Duly stamped, original statement of the person in charge
Original Import Power of Attorney
HS Code list of commodities to be imported
Original of Resident Identity Card (KTP) of the person in charge
Front view and back view photos of the warehouse and office
Warehouse address where the product is stored
With the username and password, the applicant can apply for SKI Border and SKI Post Border online. The documents required to be uploaded are as follows:
Fragrance must also attach:
Approval of the application of SKI Border and SKI Post Border will be issued in electronic no later than 1 working day after the submission of documents if there is no incompliance.
4 Business Registration Number (Nomor Induk Berusaha in Indonesian, NIB)
NIB, in the form of 13 (thirteen) random digits accompanied by an Electronic Signature, is the identity of the business actor issued by the OSS Institution after the business actor has registered. With the NIB, the business actor does not need to obtain some required licenses such as Trading Business License (SIUP), Company Registration Certificate (TDP), Import Identification Number (API), etc.
Business actors can follow the following steps to obtain a NIB:
Log in to the OSS system
Fill in the data needed, namely company data, shareholders, capital ownership, investment value and planned use of labor including foreign workers
Fill in business information that corresponds to the 5 digit Indonesian Business Field Standard Classification (KBLI)
Give a checklist and a disclaimer regarding the truth and validity of the data submitted
The OSS system will issue a NIB for business actors
NIB is valid as long as the business actor runs his business and/or activities in accordance with statutory provisions.
Both domestically manufactured and imported cosmetics should be notified with the Agency for Drug and Food Control before circulated on the market (those products only used for research or samples for exhibitions in limited quantities and not for trade are exempted).
5.1 Applicant Registration
Three types of stakeholders are qualified to apply for the notification:
Cosmetic industry located in the territory of Indonesia which has a production license;
Importers who have Import Identification Numbers (API) and obtain the letter of authorization for agency from manufacturer of country of origin;
Individual businesses/ business entities that contract with a domestic cosmetic industry which has obtained a production license.
These qualified applicants must first register with the Head of the Agency. The registration shall be done by filling out an electronic data form and uploading electronic data via BPOM cosmetics notification service official page (http://notifkos.pom.go.id/new). If the data submitted are verified, the applicant will get the User ID and Password to apply for notification.
For an importer or business individual/business entity that undertakes a production contract, it must obtain a recommendation as a notification applicant. The recommendation shall be obtained by submitting an application for facilities inspection to the Head of the local UPT BPOM.
Notification Applicant Registration Procedures
5.2 Notification Procedure
Registered applicant apply for notification by filling out and uploading data on another electronic form of Template on the BPOM cosmetics notification service official page (* Template consists of information needed for this application, which will be detailed below or refer to our coslist).
The applicant who has successfully submitted the Template will receive an electronic Pay Order. The applicant should make a payment through an electronic payment system as non-tax state revenue within seven working days. The system issues a product ID number automatically as a receipt for the notification application (If the applicant makes the payment exceeding seven working days, the notification application will be considered null and void automatically deleted from the system).
The notification applicant will receive the cosmetic notification dossiers verification result in any of the following conditions within fourteen working days from the issue of the product ID number (for perfume products, three working days).
1. Received. The Head of the Agency will issue a notification letter stating the notification number.
2. Rejected. Fees that have been paid are irrevocable.
3. Clarification request. This result will be issued in terms of cosmetics contain ingredients with uncertain safety and usefulness or cosmetics with unclear data related to the product name, status, categories, and/or brand ownership. Clarification documents shall be supplemented within 14 working days. Clarification is carried out at most three times.
4. Once the product got notified, it must be produced or imported and circulated within 6 months.
Note: During the application processing, the Head of Agency may require the notification applicant to give an example of cosmetics when needed.
Notification is valid for a period of 3 years, and the cosmetic industry, cosmetic importer or individual business/business entity should be responsible for the cosmetic quality and safety.
Cosmetics with expired notification are prohibited from being produced or imported and/or distributed in Indonesian. But in cases where the notification has expired, cosmetics that have been distributed can be circulated for a maximum of 6 months under the following conditions:
|Still in the process of submitting notification renewal|
|Still in the process of submitting new notification|
|Has receieved a new notification|
If changes were made to the following aspects, notification of change must be made:
Name of the industry/importer/business entity that carries out notification without changing the rights to circulate or ownership status
Address of the industry/importer/business entity that carries out notification without changing the rights to circulate or ownership status
Packaging size and type
As for other changes, industry/importer/business entity must renew the notification.
5.3 Examples of Notification Template
1. Product Status (Choose one)
4. Product data
5. Product type
6. Product packaging list
7. List of cosmetic ingredients
8. CFS data
5.4 Priority Services for Notification
Priority services are provided to notification applicants who meet the following criteria. The notification dossiers verification results shall be issued within three working days under priority service.
Type of products and categories of cosmetics which can be designed in priority services
Creams, emulsions, lotions, gels
and oils for skin (hands, face, feet,
Tinted bases (liquids, pastes,
Make up Base/Foundation
Make-up powders, after-bath
powder, hygienic powders, etc.
Toilet soaps, deodorant soaps, etc.
Bath soap, solid
Hair care products
Hair and body wash
Shaving product (creams, foams,
Products for making-up and
removing make-up from the face
and the eyes
Products for nail care and make-up
Nail extender/Nail elongator
Nail polish remover
Bath and shower preparations
(salts, foams, oils. gels, etc.)
Liquid bath soap
Criterias shall be met:
Cosmetics industry that has been registered with BPOM and has a cosmetics notification number for sub-accounts submitted
Have never been involved in a criminal offense in the field of cosmetics
Administrative documents submitted are well-formed and in good order
Have a safety assessor / technical person in charge
Not use a service bureau in handling notification/distribution permit
Never received a warning letter related to violations and/or listed in a public warning related to prohibited ingredients and illegal cosmetics during the last two years
Never received a stern warning letter during the last two years
Conduct and report the results of cosmetics adverse reaction monitoring
Never received the rejected results of notification dossiers verification on the grounds of not meeting administrative, safety and quality requirements for the past three years
Have audited PIF and/or inspection of production facilities and/or GMP with the results of complete documents (CAPA closed)
Not use the brand together
Never involved a case related to the brand
5.5 Product Information File (Dokumen Informasi Produk, DIP)
PIF shall be prepared by manufacturers or importers before cosmetics are notified and provided when the POM agency conducts an examination. The PIF must be kept in the form of electronic and/or written documents (hard-copy) and stored properly for a minimum of 6 years as of the latest production or importation of cosmetics and updates once there are any changes.
PIF can either be in English or Indonesian and has to include the following information:
1. photocopy of valid Cosmetics production license
2. photocopy of statement regarding brand
3. photocopy of GMP certificate
1. photocopy of Importer Identification Number (API)
2. photocopy of valid agency appointment letter in Indonesian and / or English and at least lists:
3. photocopy of contract cooperation agreement between the notification applicant and the recipient of a production contract that is validated by a notary public and includes the brand and / or name of the cosmetics and the validity period of the agreement, for individual businesses / business entities conducting production contracts with the cosmetics industry outside Indonesia
4. photocopy of Certificate of Free Sale (CFS) for imported cosmetics originating from countries outside ASEAN, issued by authorized officials or institutions recognized in the country of origin legalized by the Embassy / Consulate General of the Republic of Indonesia, excluded for cosmetics contracted produced outside Indonesia
5. photocopy of statement regarding brand
6. photocopy of GMP certificate or statement of GMP application for industries located in ASEAN countries
7. photocopy of GMP certificate for the cosmetics industry located outside ASEAN countries and the cosmetics industry outside Indonesia which received a production contract with the following conditions:
lissued by authorized government officials or recognized institutions in the country of origin;
If the GMP certificate cannot be issued by authorized government officials or recognized institutions, then the importer must attach 1) photocopy of GMP certificate issued by an accredited certification body that is recognized as being equal with ASEAN GMP, 2) photocopy of cosmetics industrial/production license;
l legalized by the Embassy / Consulate General of the Republic of Indonesia;
l include the validity period (if the validity period is more than 5 years or not mention, the certificate is regarded valid for 5 years)
1. photocopy of cosmetics production license and GMP certificate
2. photocopy of contract cooperation agreement between the contractor and the recipient of a production contract that is validated by a notary public and includes the cosmetics brand and/or name and validity period
3. photocopy of business license in the cosmetics sector from the contractor
4. photocopy of statement regarding brand
1. photocopy of valid cosmetics production license
2. photocopy of the appointment letter or approval from the licensing company that lists the cosmetics brand and/or name
3. photocopy of valid GMP certificate or GMP application statement
Cosmetic ingredients quality and safety data
1. Cosmetics ingredient quality data
l The specification of each ingredient include water specification if it's in the formula
l Analytical methods that correspond to the specification for each ingredient, including the identification of cosmetics ingredients
l For fragrance, the names and code numbers of the fragrance are listed, the supplier's name and address, and a statement fulfilling the latest International Fragrance Association (IFRA) guidelines
2. Cosmetics ingredient safety data
l Data from suppliers
l Published data or reports from Scientific Committees such as ASEAN Cosmetic Scientific Body (ACSB), EU Scientific Committee on Consumer Safety (SCCS) or US Cosmetic Ingredient Review Board (CIR)
l Other scientific data
l Empirical or scientific proof, specifically for: - ingredients that are not listed in the permitted ingredient list with restrictions and precautions; and / or - natural ingredients in Indonesia which are used as colorants / preservatives / sunscreens
*Data in this section can be stored separately from other PIF data
Cosmetics quality data
1. Cosmetics formula which contains
l Name of the ingredients, ingredients written with name in International Nomenclature Cosmetic Ingredients (INCI) or other names in accordance with internationally accepted references and the ingredients are written in percentages with a total of 100%
l The function of each cosmetics ingredient
l For fragrances or aromatic ingredients must include
2) perfume composition code number in accordance with guidelines set by the International Fragrance Association (IFRA)
3) supplier identity
2. Cosmetics manufacturing
l Complete and detailed data regarding names, addresses and countries of the cosmetics and packaging industries if the primary packaging process is carried out by other industries;
l A summary of the manufacturing process;
l Additional information about the manufacturing process, quality control, and other relevant information must be available if at any time checked by the auditor / authorized officer;
l Explanation of the batch numbering system.
3. Cosmetics analysis specifications and methods:
l Cosmetics specifications include the criteria used for microbial surveillance in cosmetics and purity of ingredients in cosmetics products;
l The analysis method is in accordance with cosmetics product specifications set.
4. Cosmetics stability data.
l Stability test data to support setting expiration
Safety and efficacy data of cosmetics
1. Safety assessment
l Cosmetics safety assessment report based on cosmetics ingredient, chemical structure and exposure level, signed by the Technical Assessor or Safety Assessor
l Curriculum Vitae of Technical Assessor or Safety Assessor
2. Compilation of the latest reports regarding records of adverse reactions on humans due to the use of cosmetics
l Report of adverse reactions on humans and update regularly
3. Data supporting cosmetic claims
l A complete report on the efficacy assessment based on composition or efficacy test conducted and signed by the report maker
l Supporting data includes a literature review on efficacy claims
4. Cosmetics marking and information, at least contain:
l Marking on primary packaging and / or secondary packaging
l Other information which may include brochures, label, and others which constitutes an integral part of the primary packaging and / or secondary packaging
In general, the data in PIF is sufficient to assess the safety, quality and efficacy of cosmetics in circulation. For certain cases, additional data or other background data is required to support PIF (e.g. product history/product experience, challenge tests for microbes, additional analysis methods for confirmation, and production records).
6 Ingredients Standard
Cosmetic ingredients in Indonesia shall comply with Limitations for Contamination in Cosmetics and the Technical Requirements for Cosmetic Ingredients 2019 which includes appendices:
Appendix V: 1606 prohibited ingredients
6.1 The Scope of Prohibited Cosmetic Ingredients
Ingredients listed in Appendix I that do not comply with the allowable limit and conditions of use;
Ingredients listed in Appendix II, III and IV that do not comply with the specified requirements;
Ingredients listed in Appendix II, III and IV that are not used as the colorant, preservative and sunscreen agent, and do not comply with the requirements in Appendix II, III and IV;
Colorants, preservatives and sunscreens not listed in Appendix II, III and IV;
Prohibited ingredients listed in Appendix V.
Other cosmetic ingredients not listed in Appendix I can be used as long as it meets the safety, efficacy and quality requirements. Relevant scientific or empirical evidence proving compliance with safety, usefulness and quality requirements is required to provide and include in PIF.
When natural ingredients not listed in Appendix II, III and IV are used as colorants, preservatives or sunscreens in cosmetics, relevant scientific or empirical evidence is required to provide and include in PIF, and an approval from Directorate of Standardization of Traditional Medicines, Health Supplements and Cosmetics is required.
6.2 Additional Requirements for Cosmetics Containing Specific Ingredients
In the case of imported cosmetics containing isopropylparaben, isobutylparaben, or benzylparaben, cosmetics can be notified in Indonesia but must fulfill the following conditions:
|1) isopropylparaben, isobutylparaben, and benzylparaben are permitted as cosmetic ingredients in the country of origin;|
|2) does not conflict with the requirements as listed in Appendix III|
In the case of cosmetics containing alpha arbutin or beta arbutin,
|1) in the PIF must be attached in the form of test results of hydroquinone content in:|
a. Certificate of cosmetic analysis
b. Cosmetic stability test
|2) cosmetics storage conditions shall be labeled on the packaging|
6.3 Limitations for Contamination in Cosmetics
a) Limitation Standards on Microbial Contamination
|1. Cosmetics for children under 3 years old|
2. Cosmetics used around the eyes
3. Cosmetics used in the area contacting with mucous membranes
|Cosmetics except for:|
1. cosmetics for children under 3 years old
2. used around the eyes
3. used in the area contacting with mucous membranes
|Total plate count||≤ 5x102 colony/g or colony/mL||≤ 103 colony/g or colony/mL|
|Mold and Yeast||≤ 5x102 colony/g or colony/mL||≤ 103 colony/g or colony/mL|
|Pseudomonas aeruginosa||Negative per 0.1 g or 0.1 mL sample (test sample)||Negative per 0.1 g or 0.1 mL sample (test sample)|
|Staphylococcus aureus||Negative per 0.1g or 0.1 mL sample (test sample)||Negative per 0.1 g or 0.1 mL sample (test sample)|
|Candida albicans||Negative per 0.1 g or 0.1 mL sample (test sample)||Negative per 0.1 g or 0.1 mL sample (test sample)|
b) Limitation Standards on Heavy Metal Contamination
|Mercury (Hg)||≤ 1mg/kg or 1mg/L (1ppm)|
|Lead (Pb)||≤ 20 mg/kg or 20 mg/L|
|Arsenic (As)||≤ 5 mg/kg or 5 mg/L (5 ppm)|
|Cadmium (Cd)||≤ 5 mg/kg or 5 mg/L (5 ppm)|
c) Limitation Standards on Chemical Contamination
|1,4-Dioxane (*)||≤ 25 mg/kg or 25 mg/L|
Note: (*) refer to cosmetics containing ingredients made through ethoxylation processes such as Sodium Laureth Sulphate or Polyethylene Glycol.
The cosmetic label in Indonesia must list all required information in accordance with the existing reality honestly and accurately, and should be presented in a way that is not easily removed or separated from the packaging and not easily faded or damaged.
The label should contain the following information:
List of ingredients
Name and country of producer
Name and full address of the notification applicant
Size, content or net weight
The following information must be written in Indonesian language:
Other information listed above may be written in Indonesian language or Latin letters and/or Arabic numerals.
Special warning must be labeled for certain products:
|Aerosols||Attention! Do not contact with eyes and do not breathe in. Watch out! High pressure content, can explode at temperatures above 50℃. Do not stab, do not store in heated place or near open flame, and do not dispose of using an incinerator.|
|Mouthwash containing fluoride||Do not apply to children under 6 years old.|
|Cosmetics containing ingredients derived from pork||Containing Pork|
|Cosmetics whose manufacturing process is in contact with ingredients derived from pork||In the manufacturing process it intersects with pork sourced ingredients|
Unlike the notification system the authority doesn’t conduct a strict premarket evaluation on product claims. Therefore, cosmetic industry/importers/business entities are required to conduct self-assessment and ensure the objectivity and authenticity of claims on labels and advertisements.
Cosmetic claims must meet the following criteria:
Clear and easy to understand;
May not pretend to be a medicine or aim to prevent a disease.
To fulfill the above criteria, cosmetic claims must pay attention to the following matters:
1. Claim evaluation should be the compliance evaluation of the entire sentence.
2. Claims must be true and can be proven, such as:
3. Claims must be objective, not derogatory to the company, organization, industry, or competitor's products.
4. Claims must not promise immediate efficacies if:
5. Claims must not use sentences that aim to treat, pretend to be a medicine, or aim to prevent a disease or contain medical terms. E.g. gingivitis (inflammation of the gums), halitosis.
6. Claims must not include statements issued by a particular organization or institution unless accompanied by justifiable evidence. E.g., cruelty-free and organic.7. Claims must not use exaggerated words such as "safe" without being accompanied by objective, adequate and reliable evidence.
8. Claims do not describe or give the impression of any advice, recommendations, or information about the use of cosmetics from a laboratory, research institute, government agency, health/beauty professional organization or health personnel.
9. Claims do not contain name, logo/symbol or identity from ministries, institutions, laboratories or agencies that conduct analysis or issue cosmetic certificates.
10. Claims must not use exaggerated words such as "harmless," "no side effects," "potent," or words/sentences with the same meaning.
11. Claims must not use superlative words such as "most," "number one," "top," or words starting with "ter," or words/sentences that have the same meaning unless accompanied by verifiable evidence.
12. Claims must not use words "100%," "pure," "original," or words with the same meaning unless accompanied by a reliable explanation, in which case the product is the only one.
13. Claims must not use words "only" or words with the same meaning unless accompanied by verfiable evidence.
14. Claims must not include a statement that does not contain ingredients allowed in cosmetics, except for ingredients related to culture, religion and fragrance which are proven to cause allergies. E.g., Free of alcohol, free of ammonia, free of soap, free of detergents, and free of fragrances.
15. Claims must not include a statement that it does not contain prohibited ingredients in cosmetics.16. Claims must not contain usage methods outside the cosmetic definitions.
Here are some examples of permitted and prohibited claims:
1) Permitted Claims
Creams, emulsions, lotions, gels, and oils for skin (hands, face, feet, etc.)
Face masks (with the exception of chemical peeling products)
Tinted bases (liquids, pastes, powders)
Make-up powders, after-bath powder, hygienic powders, etc.
Toilet soaps, deodorant soaps, etc.
Perfumes, toilet waters, and eau de cologne
2) Prohibited Claims
1. Relieve irritation/redness due to prickly heat
2. Prevent prickly heat
3. Reduce itching due to mosquito bites
4. Treat diaper rash
5. Free from rashes and irritation
6. Eliminate nail fungus
8. Do not cause skin allergies and irritation
10. Minimize skin irritation
In Indonesia Cosmetics can be advertised after obtaining an approval of notification. Notification number holders are responsible for the compliance of advertisements. The advertisements must be:
Objective, namely providing information in accordance with the existing reality and must not deviate from the nature of the efficacy, usage, and safety of cosmetics;
Not misleading, namely providing honest, accurate, and responsible information, and not taking advantage of public concerns;
Does not pretend to be a medicine or aim to prevent a disease.
Click here to see more requirements for advertisements.
Part 3 HALAL Cosmetic
Indonesia is the fourth biggest country in the world with about 260 million people, of whom more than 86% are Islamic, meaning HALAL products are extremely important. For the same kind of products, Muslim consumers will give priority to products with halal certification labels.
To give consumers a guarantee of whether products are halal, on Oct. 17, 2014, Indonesia issued Law Number 33 Year 2014 concerning Halal Product Assurance (HPA Law), which was effective on Oct. 17, 2019. Article 4 of the HPA Law stipulated that all halal products which are imported, distributed and traded in Indonesia or services related to cosmetics, foods, beverages, medicines, chemical products, biologic products and genetically modified products must be certified halal from Oct. 17, 2019. Halal-certified products must label “Halal” on the outer packaging, or non-halal information for which is not certified as halal, indicating that it is a non-halal product.
1 Competent Authorities
1.1 MUI and LPPOM MUI
MUI (Majelis Ulama Indonesia) is the authoritative and credible Islamic organization in Indonesia. Before the establishment of BPJPH, MUI served as the only halal certifier and has been controlling the entire halal certification process for over 2 decades.
Under the MUI, there set an LPPOM MUI (Institute for Food and Drug Assessment of Indonesian Council of Ulama), responsible for halal certification examination for cosmetics, food and medicines before the establishment of BPJPH.
Under the HPA Law, MUI will be responsible for issuing the Halal Fatwa after holding the Halal Fatwa Assembly, which guarantees that the products are in accordance with the Islamic Syariat and also the basis for obtaining BPJPH endorsed halal certification.
BPJPH (Badan Penanggulangan Jaminan Produk Halal) was newly founded in 2017 to gradually take charge of halal certification. It took over the mandate previously held by MUI’s Food, Drug and Cosmetics Assessment Body (LPPOM MUI) on Oct 17, 2019. MUI need to cooperate with BPJPH, but the responsibility division between them was unclear in the past several years.
The Omnibus Law implemented on Nov. 2, 2020, partially resolves this ambiguity. MUI is authorized for the product halal status determination through a Halal Fatwa. BPJPH will coordinate with MUI about the product halal status determination.
2 Halal Certification Procedures
2.1 Former Procedures
Previously if enterprises wanted to obtain a halal certificate, they can apply to LPPOM MUI voluntarily after all the dossiers are ready. After LPPOM MUI conducts a formal audit, it will submit the results to MUI. If MUI approves the application, a halal certificate will be issued. The entire process takes an average of 75 days. But the timeline does not include the document preparation before the submission and it will be longer under certain conditions, we expect it to take an average of 6 months.
2.2 Current Procedures
After the implementation of HPA Law and the Omnibus Law, the halal certification procedures are divided into the following steps.
1) Business operators apply for halal certification to the BPJPH in written. The BPJPH must confirm the application documents’ completeness within 1 working day after submission.
2) BPJPH appointed an LPH to perform examination and/or testing of the product halal status based on the application of the business operator. The appointment of an LPH should be performed within 1 working day after receiving the halal certification application.
3) LPH appointed halal auditors to conduct the product halalness examination. Halal auditors should check and examine the halal status of the product within 15 working days. LPH is allowed to submit a written proposal to BPJPH for extra examination time.
Product halalness examination is performed on business location during the production process. In case during the product examination there is an ingredient in which the halalness is doubtful, testing in a laboratory shall be conducted.
4) Halal auditors submit the product halalness examination results to LPH. LPH submit the results to MUI with a copy sent to BPJPH.
If the examination results fail to meet BPJPH standards, BPJPH shall convey the consideration to MUI.
5) Determination of Product Halalness is conducted by MUI and performed in Halal Fatwa Assembly. Halal Fatwa Assembly should decide the product halalness with 3 working days after the MUI receives the examination results.
Decree of the Determination of Halal Product (Halal Fatwa) is submitted by MUI to BPJPH as the basis for issuing the Halal Certificate.
6) In case the Halal Fatwa Assembly determined the Product being applied for by the Business Operator as halal, BPJPH shall issue the Halal Certificate within 1 working day.
In case the Halal Fatwa Assembly determined the Product not halal, BPJPH returns the Halal Certificate application to the Business Operator along with the reason within 1 working day.
2.3 What Business Operators need to do
If you want to obtain a halal certificate for your product, you should fulfill the following approval requirements:
1. Understanding halal certification requirements and following Halal Assurance System (HAS) Training
Companies must understand the halal certification requirements listed in HAS 23000. In addition, the company must also attend HAS training, either in the form of regular training or online training (e-training).
2. Implementing Halal Assurance System
Companies must implement HAS before applying and registering for halal certification process. The Halal assurance system is based on halal policies, establishing Halal Management Team, preparing HAS Manual, conducting training, preparing related HAS procedures, implementing internal audit, and reviewing management properly.
3. Preparing Halal Certification Document
The Company must prepare all necessary documents for the halal certification process. The documents required include: a list of products, a list of materials and documents of the material, a list of butchers (particularly for Slaughterhouse), matrix of products, HAS Manual, flow chart of the process, a list of production facilities addresses, evidence on halal policy dissemination, evidence on internal training and evidence on internal audit.
4. Registering the halal certificate (upload data)
Applying and Registering for halal certification is performed online.
5. Monitoring pre-audit and payment of contract for halal certification process
After uploading certification data, the company must conduct a pre audit monitoring and finalize payment of the contract. This pre audit monitoring is recommended to be conducted every day to uncover any discrepancies in the results of pre audit. Payment of contract for certification process is performed by downloading the certification contract, paying the cost of the contract and signing the contract, and then making payments.
6. Performing audit
Audits can be performed if the company has already passed the pre-audit process and the contract has also been approved. Audits are conducted at all facilities related with products to be certified.
7. Performing post-audit monitoring
After uploading the data certification, the company must conduct post-audit monitoring. This post-audit monitoring is recommended to be performed every day to find out any discrepancies in the results of the audit, and if there is any discrepancy, then it must be corrected properly.
8. Receiving halal certificate
Halal certificate is valid for four (4) years.
2.4 For Foreign Companies
Products certified halal by foreign institutions that cooperate with the BPJPH do not need BPJPH halal certification but must still be registered with the BPJPH before they can be distributed in Indonesia. The full list of international partners is forthcoming; however, the following terms have been defined:
If the agency is recognized by the BPJPH, foreign businesses can then register with the BPJPH with a list and detailed description of their products along with the Halal certification from the local foreign halal agency (FHA) partner;
|Copy of product’s Foreign Halal Certificate, that has been authorized by Indonesia’s representative in the country of origin|
|List of products to be imported to Indonesia, completed with the HS code number|
|Statement letter declaring that submitted documents are true and legal|
The BPJPH will then issue a registration number that must be placed on all packaging; and
The product is then ready to be exported to Indonesia.
3 Business Operators Obligations
1) Business operators that submit application of halal certificate must:
provide information that is correct, clear, and truthful;
separate the location, place, and equipment for processing, storing, packaging, distributing, selling, and presenting between halal and non-halal Product;
have halal supervisor;
report change of material composition to BPJPH.
2) Business operators that obtain halal certificate must:
attach the halal label on the product that receive halal certificate;
maintain the “halalness” of the product that has obtain halal certificate;
separate the location, place and equipment for processing, storing, packaging, distributing, selling, and presenting between halal and non-halal product;
renew the halal certificate if the validity period of the halal certificate has expired;
report change of material composition to BPJPH.
3) Business operators that produce product from material that originate from haram material is excluded from submitting Halal certificate application.
4 Halal Logo
Halal-certified products must label “Halal” on the outer packaging. Business operators that have obtained Halal Certificate must include the Halal Logo on:
Specific part of the product;
Specific place of the product.
Inclusion of Halal logo must be easy to see and read as well as not easily erase, detach, and damage.
The new format of halal logo is determined by the BPJPH in Regulation 40/2022. The new halal logo has been applied nationally and must be shown on the product packaging as a sign of product halalness from March 1, 2022.
To offer convenience for business operators to cope with the transition, for those who have halal-certificated products in stock that were manufactured and packaged with the former halal logo before the implementation of the new logo, they are still allowed to sell the stock first. After that, they must immediately adjust halal label on their products in accordance with the provisions in Regulation 40/2022.
The former halal logo (left) and the new halal logo (right)
5 Latest Updates
1) Implementation Timeline
Halal Certification became mandatory for enterprises entering Indonesian market on Oct.17, 2019. The head of BPJPH said that the authorities will not require all the products to be halal-certified immediately, but to implement the HPA Law step by step, likely meaning there will be some form of grace period offered. Businesses are able to obtain the halal certification progressively or gradually with the period specified below:
Food and beverages: October 17, 2019 – October 17, 2024
Food and beverages packaging: depending on the type of food and beverages
Traditional medicines and health supplements: October 17, 2021 – October 17, 2026
Clothing, headwear and accessories: October 17, 2021 – October 17, 2026
Chemical products, cosmetic products, and genetically engineered products: October 17, 2021 – October 17, 2026
Risk A class medical devices: October 17, 2021 – October 17, 2026
Household appliances, household healthcare supplies, stationery and office equipment, Muslim prayer equipment: October 17, 2021 – October 17, 2026
Risk B class medical devices: October 17, 2021 – October 17, 2029
Over-the-counter (OTC) drugs and limited OTC drugs: October 17, 2021 – October 17, 2029
Risk C class medical devices: October 17, 2021 – October 17, 2034
Prescription drugs (except psychotropics): October 17, 2021 – October 17, 2034
Services relating to OTC drugs, limited OTC drugs, prescription drugs (except psychotropics), chemical products, cosmetics and genetically engineered products: depending on the type of product
Biological products, drug products, medical devices with its materials or production processes not determined as halal yet: according to related laws and regulations
Products that had not had their halal certificates before October 17, 2019 can still be imported and traded in Indonesia according to the periods as stated above. Except for food and beverages, it' s not allowed for businesses to submit their halal certification application before the commencement of the stated periods above.
Halal certificates issued by MUI before HPA Law takes effect are still effective until they expire, but upon expiry renewal submissions would need to be submitted to BPJPH. The renewal of the halal certificate must be applied no later than 3 months before expiry date of the halal certificate.
IndonesianOmnibus Law was approved by Indonesian House of Representatives (DPR) and signed by thr President Jokowi on Nov. 2, 2020. It amended 76 existing laws including the HPA Law. The following are the main amendments.
1) Significantly reduce the time required for halal certification
The Omnibus Law set or reduced the time limit for each link of halal certification. The time required from application to certificate issuance has been shortened to around 21 working days.
2) Reduce the burden on enterprises
The biggest challenge of halal certification for micro and small business is the high cost. The Omnibus Law exempts the halal certification fees for micro and small business.
Another notable point among the amendments is that BPJPH can renew the halal certificate directly if the ingredients are not changed. The enterprises do not need to undergo the halal review or examination for certificate renewal.
3) Clarify the responsibility division between BPJPH and MUI
Before the establishment of BPJPH, there was no government agency for halal certification in Indonesia. MUI served as the only halal certifier and has been controlling the entire halal certification process for over 2 decades.
Established in 2017 and officially started operating in 2019, BPJPH took over from MUI as the sole and national halal certification government agency in Indonesia. MUI need to cooperate with BPJPH, but the responsibility division between them was unclear.
The Omnibus Law partially resolves this ambiguity. MUI is authorized for the product halal status determination through a halal fatwa. BPJPH will coordinate with MUI about the product halal status determination.
The details regarding halal supervisors, LPH, halal auditors, the halal certificate renewal process, fees, public involvement and sanctions shall be further regulated in a Government Regulation that is to be issued.