Indonesia Aims to Simplify Halal Certification for SMEs

The Indonesian Ministry of Cooperatives and Small and Medium Enterprises (SMEs) is working to streamline the halal certification process for businesses in the country. This move comes as part of the government's broader efforts to support the growth of the halal industry and make it easier for SMEs to obtain halal certification for their products.

Halal certification is an important requirement for businesses looking to tap into the growing global halal market, which was valued at USD 1,978 billion in 2021 and is projected to reach USD 3,907.7 billion by 2027. However, the certification process can be complex and time-consuming, especially for smaller businesses with limited resources.

To address this issue, the Indonesian government has extended the deadline for accreditation of halal certification bodies and registration of export units by three months until July 4, 2024. This extension is intended to give businesses more time to comply with the certification requirements and ensure a smooth transition to the new system.

Why this matters: The simplification of the halal certification process in Indonesia could have significant implications for the country's SMEs and the broader halal industry. By making it easier for businesses to obtain halal certification, Indonesia could position itself as a major player in the global halal market and support the growth of its domestic halal industry.

The Indonesian government's efforts to streamline the halal certification process are part of a wider trend of countries developing halal-related laws and regulations to support the growth of the industry. However, these regulations are not yet harmonized globally, which can create challenges for businesses looking to export their products to different markets.

Despite these challenges, the rapid growth of the halal industry presents significant opportunities for businesses in Indonesia and around the world. By simplifying the halal certification process and providing support for SMEs, the Indonesian government is taking steps to help businesses capitalize on these opportunities and contribute to the growth of the country's economy.

Key Takeaways

• Indonesia aims to streamline halal certification for SMEs to support industry growth.
• Halal market valued at $1.98 trillion in 2021, projected to reach $3.91 trillion by 2027.
• Indonesia extends halal certification accreditation deadline by 3 months to July 2024.
• Simplified halal certification could make Indonesia a major player in the global halal market.
• Harmonizing global halal regulations remains a challenge for businesses seeking to export.