The global halal industry has emerged as one of the fastest-growing sectors in the world economy. With rising awareness among Muslim consumers about the importance of halal products, global demand continues to increase sharply. As the world’s most populous Muslim-majority nation, Indonesia holds significant potential to become a leading player in the international halal market. This potential extends far beyond domestic consumption, opening opportunities to expand exports of halal products to the Middle East, South Asia, Europe, and even North America.

Halal certification plays a central role in meeting these opportunities. It is not only a matter of regulatory compliance but also a strategic instrument to strengthen product competitiveness on the global stage. In today’s highly competitive trade environment, halal certification provides added value that enables Indonesian products to stand alongside, if not surpass, those from countries that developed their halal industries earlier.

Indonesia’s Position in the Global Halal Market

According to data from the Indonesian Ulema Council (Majelis Ulama Indonesia or MUI), According to data from the Indonesian Ulema Council (Majelis Ulama Indonesia, or MUI), the global halal market is vast and projected to expand steadily each year. Indonesia is strategically positioned to capture a significant share of this market due to several factors: the world’s largest Muslim population, abundant natural resources, and strong government support in developing a halal ecosystem.

Indonesia’s strategy to penetrate the global halal market includes strengthening regulations, assisting businesses, improving product quality, and expanding international halal trade networks. However, without globally recognized halal certification, Indonesian products face barriers in export markets. This underscores why certification is not a formality but an essential component of modern business strategy.

Global trends also show growing interest in halal products among non-Muslim consumers, as halal standards are often associated with higher quality, hygiene, and food safety. This widens Indonesia’s consumer base beyond Muslim-majority countries to global markets increasingly conscious of quality assurance.

Beyond food and beverages, Indonesia also has vast potential in halal pharmaceuticals, cosmetics, tourism, and fashion. The State of the Global Islamic Economy (SGIE) Report 2023 ranks Indonesia third worldwide, an improvement from fourth in 2022, an improvement from fourth in 2022. With Muslim consumer spending on halal products reaching trillions of dollars annually, Indonesia’s contribution to its national GDP could grow significantly if these opportunities are harnessed effectively.

Recent data from the Indonesian Halal Product Assurance Agency (BPJPH) revealed that the global halal market has already reached Rp 20,670 trillion. For Indonesia, this represents an enormous opportunity, but one that depends on meeting internationally recognized halal certification standards to gain wider acceptance in global trade.

At the same time, Indonesia must address challenges from competitors like Malaysia, Thailand, and the UAE, which have established advanced halal ecosystems. Success will require not only regulatory and certification strength but also innovation, technology adoption, and international promotion to position Indonesia as a global halal hub.

Legal Framework for Halal Products in Indonesia

Indonesia’s halal product regulations have evolved significantly over the past decade in response to consumer demand and global market requirements. The government views halal product assurance as integral to consumer protection, national industrial growth, and export strategy.

The foundation of halal certification is Law No. 33/2014 on Halal Product Assurance (UU JPH), which established mandatory certification for products circulating in Indonesia. Article 4 of UU JPH stipulates this obligation, while Article 3 emphasizes two main objectives:

1. To provide comfort, security, safety, and certainty of halal products for consumers; and
2. To enhance added value for businesses producing and selling halal products.

To operationalize the law, the government issued Government Regulation No. 42/2024 on the Implementation of Halal Product Assurance (PP 42/2024). Article 2 of this regulation sets out key obligations:

- Products entering, circulating, and traded in Indonesia must be halal-certified.

- Products made from prohibited (haram) materials are exempted from certification.
- Such exempted products must be clearly labeled as “non-halal.”

This framework ensures that every product is classified clearly as either halal or non-halal. There is no neutral or undefined category. Businesses must certify halal products or explicitly label prohibited ones.

The legal implications are far-reaching: halal certification is not merely administrative but a matter of transparency and legal accountability to consumers. Non-compliance, such as failing to label products properly, may result in administrative sanctions, withdrawal of licenses, or even legal claims for violating consumer rights and information disclosure principles.

Also read: New Regulation for the Export of CPO in Indonesia

Halal Certification as a Business and Export Strategy

Halal certification serves both legal and commercial functions. Legally, it ensures compliance with national regulations under UU JPH and PP 42/2024. From a business perspective, it enhances brand trust, expands market access, and provides a clear assurance of product quality.

Many multinational and domestic companies have integrated halal labeling into their branding strategies. For exporters, certification is critical to access markets in Organization of Islamic Cooperation (OIC) countries, which require recognized halal standards. Importantly, several non-Muslim countries, such as Japan, South Korea, and Australia, also place high importance on halal certification, particularly in the food and beverage sector. A widely recognized Indonesian halal certification can therefore significantly increase competitiveness in the global market.

Also read: A Simple Guide to Legal Requirements for Exporting Your Business

The Certification Process in Indonesia

The certification process in Indonesia is coordinated by BPJPH in cooperation with MUI and accredited Halal Inspection Bodies (Lembaga Pemeriksa Halal or LPH). The process generally includes:

1. Registration: Businesses apply online through BPJPH’s system.
2. Document Review: Materials, production processes, and distribution systems are examined.
3. Audit: LPH conducts on-site inspections to ensure compliance.
4. Fatwa Decision: MUI issues a religious ruling based on audit results.
5. Certification: BPJPH issues the official halal certificate

This system emphasizes traceability and transparency, giving both consumers and international trading partners confidence in the integrity of halal-certified products.

For Indonesian businesses, certification must be seen not only as regulatory compliance but also as a competitive advantage. In the globalized economy, halal certification can be the key to unlocking export markets, strengthening national competitiveness, and contributing to Indonesia’s broader economic growth***

Also read: How to Export Indonesian Handicrafts: Legal Guide for Foreign Businesse

Regulations:

Undang-Undang Nomor 33 Tahun 2014 tentang Jaminan Produk Halal (“UU JPH”).
Peraturan Pemerintah Nomor 42 Tahun 2024 tentang Penyelenggaraan Bidang Jaminan Produk Halal (“PP 42/2024”).

Referenesi:

Industri Halal Penopang Pertumbuhan Ekonomi Nasional. Indonesia.go.id. (Diakses pada 18 September 2025 pukul 14.00 WIB).
Strategi Indonesia Merebut Pasar Halal Dunia. Halal MUI. (Diakses pada 18 September 2025 pukul 14.10 WIB).
Pasar Halal Tembus Rp20.000 Triliun, Kepala BPJPH: Peluang Market yang Harus Kita Ambil. BPJPH Halal. (Diakses pada 18 September 2025 pukul 14.25 WIB).
Prosedur Sertifikasi Halal MUI untuk Produk yang Beredar di Indonesia. Halal MUI. (Diakses pada 18 September 2025 pukul 14.30 WIB).

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Indonesia’s Halal Certification: Legal Framework and Global Market Strategy