Halal Certification Builds Legal Confidence and Market Trust Says BPJPH

In a recent statement that underscores Indonesia’s push toward a robust halal economy, Ahmad Haikal Hasan, Head of the Halal Product Assurance Agency (BPJPH), emphasized the critical role of halal certification in providing legal certainty and fostering market trust. Released on August 13, 2025, via ANTARA News, Hasan’s remarks highlight how halal certification not only safeguards product integrity but also elevates quality standards, making products more competitive globally. As the world’s largest Muslim-majority nation, Indonesia is positioning itself as a halal hub, with BPJPH at the forefront of ensuring compliance and innovation. This development comes amid growing global demand for halal products, projected to reach a market value of $3.27 trillion by 2028. This comprehensive article explores BPJPH’s latest insights, the evolution of halal certification in Indonesia, its legal and economic implications, practical benefits for businesses, and actionable guidance for readers, all while drawing on authoritative sources to deliver trustworthy, expert-backed information.

Background on BPJPH: Indonesia’s Guardian of Halal Integrity

Established under Law No. 33 of 2014 on Halal Product Assurance (JPH Law), the Badan Penyelenggara Jaminan Produk Halal (BPJPH) operates under Indonesia’s Ministry of Religious Affairs. Since its inception in 2017, BPJPH has replaced the Indonesian Ulema Council (MUI) as the primary authority for halal certification, streamlining processes and enforcing mandatory compliance across sectors like food, beverages, cosmetics, pharmaceuticals, and more. By 2025, BPJPH has certified over 4.5 million products, a testament to its rapid growth and commitment to building a halal ecosystem that aligns with Islamic principles while meeting international standards.

The agency’s evolution has been marked by key milestones. In 2019, the JPH Law mandated phased implementation, with full enforcement for food and beverages originally set for 2024 but extended to October 17, 2026, to accommodate small businesses. Recent updates, such as BPJPH Regulation No. 40/2022, introduced a new halal logo and indefinite certificate validity if production processes remain unchanged. In 2025, BPJPH has focused on global harmonization, signing Letters of Intent (LoIs) with U.S. halal institutions and pushing for unified standards at forums like the 2025 IFESDC in Washington DC and Kazan Forum. These efforts aim to make Indonesian halal certification mutually recognized worldwide, enhancing export potential.

Hasan’s leadership has driven initiatives like the Sistem Informasi Halal (SiHalal) platform, which integrates AI and blockchain for transparent, efficient certification. A 2025 study on integrating these technologies found they improve accuracy, reduce fraud, and boost public trust, positioning Indonesia as a leader in tech-driven halal assurance.

BPJPH’s Latest Statement: Legal Certainty and Market Trust in Focus

On August 13, 2025, Hasan articulated that halal certification “aims to provide legal certainty in ensuring the protection of a product’s halal status.” He described halal as a “standard that reflects product quality—halal means healthy, halal means hygienic, halal means clean, so halal products are quality.” This builds on earlier 2024 remarks where he noted halal certification is “not just a matter of religion” but a universal standard that adds economic value, applicable “by any industry, regardless of ethnicity, religion, nationality.”

Hasan highlighted the global trend: “Many non-Muslim countries are competing to develop the halal industry and have succeeded in becoming global exporters of halal products—their goods are trusted and consumed worldwide.” In the free trade era, he warned, “industries without halal certification will face losses,” as it counters the “enormous and growing market potential” of the halal sector. He urged adherence to halal standards, stating, “Our halal ecosystem has enormous potential. With halal standards, our products will be increasingly competitive in both domestic and international markets,” and that a “well-organized and productive halal ecosystem will be a key sector in supporting national economic growth.”

This statement aligns with BPJPH’s actions, such as issuing strict warnings in May 2025 after pork contamination in confectionery, reinforcing consumer protection. It also ties into the One Million Free Halal Certification (SEHATI) program, which has facilitated certifications for micro and small enterprises (MSEs) in 2025.

The Legal Framework: Building Confidence Through Compliance

Halal certification in Indonesia is legally mandated under the JPH Law, which requires all products entering the market to be certified unless exempted. This framework provides legal confidence by imposing sanctions for non-compliance, including fines up to IDR 2 billion (about $127,000) or imprisonment. BPJPH’s role ensures traceability from raw materials to distribution, using the Halal Product Assurance System (SJPH) to prevent contamination.

For businesses, this means reduced legal risks. Certified products are protected against false claims, and the indefinite validity of certificates (as per 2025 updates) minimizes renewal burdens if processes remain consistent. Internationally, BPJPH’s Mutual Recognition Agreements (MRAs) with bodies like the American Halal Foundation (signed February 2025) facilitate exports, building trust in markets like the Middle East and Europe.

A comparative analysis of ASEAN halal frameworks shows Indonesia’s mandatory system ensures comprehensive regulation but requires support for SMEs to avoid barriers. BPJPH addresses this through free certifications and training, enhancing legal confidence while promoting inclusivity.

Market Trust and Economic Impact: A Gateway to Growth

Halal certification fosters market trust by assuring consumers of ethical, safe products. In Indonesia, where 87% of the population is Muslim, trust translates to loyalty—certified products see up to 20% higher sales, per industry reports. Globally, halal appeals beyond religion; non-Muslims value its emphasis on hygiene and sustainability, driving demand in countries like Japan and the U.S.

Economically, Indonesia’s halal food market is projected to grow from $218 billion in 2025 to $330 billion by 2031, with exports rising 15% annually. Hasan’s example of Muhammad Yoso from Batam illustrates this: After free certification via SEHATI, Yoso’s processed chips entered supermarkets and Singapore markets, gaining trust and boosting revenue. Similarly, in Lampung, BPJPH urged 18,000 businesses to certify by 2026, offering free slots to tap into global opportunities.

For MSMEs, which comprise 99% of Indonesian businesses, certification levels the playing field. BPJPH’s expansion of access in 2025 includes simplified processes for small-scale producers, reducing costs from IDR 5-10 million to zero under SEHATI. This builds trust, as seen in the People’s Cafe chain, where 40 outlets certified in February 2025 reported increased customer confidence.

Global Context and Innovations: Positioning Indonesia as a Halal Leader

Indonesia’s vision, outlined in Halal Indo 2025, aims to dominate the global halal ecosystem through certification, exports, finance, and tourism. At the 2025 Kazan Forum, Hasan strengthened Indonesia’s role, while at IFESDC, he advocated for harmonized standards to avoid trade barriers.

Innovations like AI-blockchain integration in SiHalal enhance transparency—AI detects errors, blockchain prevents fraud, improving efficiency by 30%. For cosmetics, BPJPH’s July 2025 guidelines prepare for 2026 mandates, covering over 85,000 products. Peru’s interest in Indonesia as a Latin American halal hub underscores global trust in BPJPH.

Practical Guidance for Readers: How Businesses Can Obtain Halal Certification

To help readers navigate certification, here’s a step-by-step guide based on BPJPH’s 2025 procedures:

1. Self-Assessment: Ensure your production aligns with SJPH—use halal materials, avoid cross-contamination.
2. Registration: Apply via SiHalal (halal.go.id) or BPJPH partners like Sucofindo. For free SEHATI, check eligibility as an MSE.
3. Documentation: Submit product details, process flows, and audits. Costs range from IDR 300,000 for small businesses to higher for large ones, but indefinite validity applies.
4. Inspection and Testing: BPJPH-accredited labs verify compliance. For exports, use FHCBs like American Halal Foundation.
5. Certification and Labeling: Receive certificate and apply the new BPJPH logo. Renew only if changes occur.

Tips: Attend BPJPH webinars or LPPOM MUI sessions for common challenges. For cosmetics, focus on alcohol-free formulations. Monitor deadlines—food by 2026, others phased.

Risks to avoid: Non-compliance leads to recalls, as in the 2025 pork scandal. Benefits include market expansion—certified firms report 15-25% growth.

 Challenges and Opportunities Ahead

Looking ahead, BPJPH faces challenges like SME capacity building and global competition from Malaysia’s JAKIM. However, with postponed mandates for MSEs (announced 2025) showing government concern, and tech integrations, opportunities abound. By 2030, Indonesia could capture 10% of the global halal market, creating millions of jobs.

Hasan’s vision of halal as a universal quality standard will drive trust, urging businesses to certify proactively. As he stated, “Halal certification is a standard to increase product value,” paving the way for sustainable growth.

In conclusion, BPJPH’s emphasis on legal confidence and market trust through halal certification is a strategic move for Indonesia’s economy. By adhering to these standards, businesses can thrive, consumers gain assurance, and the nation solidifies its global position.