Food-Grade Does Not Necessarily Mean Halal: Understanding Halal Certification Requirements and Compliance Deadlines
A “food-grade” designation does not, in itself, establish that a product complies with halal requirements. Under Indonesia’s Halal Product Assurance regime, the requirement to obtain halal certification must be assessed based on, among other factors, the type of product, its ingredients or materials, intended function, manufacturing process, and its relevance to the halal status of the final product.
Halal Certification Requirements
As a general principle, products that enter, circulate, and are traded within the territory of Indonesia are subject to halal certification requirements. This obligation is stipulated under Article 4 of Law No. 33 of 2014 on Halal Product Assurance (“Law 33/2014”).
The term “product” is broadly defined. Pursuant to Article 1 point 2 of Government Regulation No. 42 of 2024 on the Implementation of Halal Product Assurance (“GR 42/2024”), a product includes goods and/or services related to food, beverages, pharmaceuticals, cosmetics, chemical products, biological products, genetically engineered products, as well as consumer goods that are worn, used, or utilized by the public.
Accordingly, the determination of whether halal certification is mandatory should not be based solely on whether the relevant goods constitute food or beverages. Consideration must also be given to the type, function, intended use, and role of the relevant goods within the production process.
Are Food-Grade Products Required to Obtain Halal Certification?
The term food grade generally indicates that a material or product meets certain standards that make it suitable or safe for use in connection with, or in contact with, food. However, a food-grade designation is not equivalent to halal status.
Within the context of the Halal Product Assurance regime, food-grade products may include materials, packaging, lubricants, processing aids, or other equipment and substances used in food production. It is therefore necessary to identify the composition and function of the relevant product in order to determine whether it falls within the scope of mandatory halal certification.
This is also relevant to Article 17 paragraph (1) of Law 33/2014, which provides that materials used in a Halal Product Process include raw materials, processed materials, additives, and processing aids.
Accordingly, where a food-grade product is used as part of a production process and is relevant to the fulfillment of halal requirements applicable to the final product, the halal status of its materials and production process must be appropriately verified.
Therefore, the “food-grade” designation alone cannot serve as the basis for determining whether a product is or is not subject to mandatory halal certification. Such determination must take into account the product classification, composition, function, manufacturing process, and the applicable regulatory provisions governing products subject to mandatory halal certification.
Not All Materials Are Subject to Mandatory Halal Certification
Although the Halal Product Assurance regime imposes mandatory halal certification requirements, certain materials may be exempt from such requirements in accordance with applicable laws and regulations.
In principle, exemptions may apply to certain naturally occurring materials that have not undergone specific processing, or materials which, by virtue of their characteristics, do not present a risk to the halal status of the relevant product.
Accordingly, before procuring or manufacturing food-grade products, businesses should first conduct a product and material classification assessment to determine whether the relevant item:
- constitutes a product subject to mandatory halal certification;
- constitutes a material for which supporting evidence of halal compliance is required; or
- falls within an exemption under the applicable laws and regulations.
When Does Halal Certification Become Mandatory?
Mandatory halal certification is implemented in phases based on the relevant product category and classification of the business operator.
Specifically for food, beverages, slaughtered products, and slaughtering services, Article 160 of GR 42/2024 provides for the following implementation periods:
- Medium and large-scale business operators: the mandatory halal certification implementation period commenced on 17 October 2019 and ended on 17 October 2024.
- Micro and small-scale business operators: the implementation period commenced on 17 October 2019 and will end on 17 October 2026.
- Food, beverages, slaughtered products, and slaughtering services originating from overseas: the mandatory halal certification requirement must be determined by the Minister no later than 17 October 2026, taking into consideration the completion of mutual recognition arrangements for halal certificates.
Accordingly, for medium and large-scale business operators within the relevant product categories, the implementation period has ended as of 17 October 2024. For micro and small-scale business operators, the implementation period remains in effect until 17 October 2026.
However, these deadlines should not automatically be applied to all products bearing a food-grade designation. The relevant product category must first be determined, as the implementation schedule for mandatory halal certification varies depending on the product category prescribed under GR 42/2024.
Procedure for Obtaining a Halal Certificate
Where an assessment determines that the goods to be manufactured or traded fall within a category subject to mandatory halal certification, the business operator may submit an application through SiHalal, the electronic system administered by the Halal Product Assurance Organizing Agency (Badan Penyelenggara Jaminan Produk Halal – “BPJPH”).
In general, the application documentation includes:
- information regarding the business operator;
- the name and type of product;
- a list of products and materials used; and
- information regarding the product processing or manufacturing process.
Under the regular certification scheme, the halal certification process generally consists of application registration, verification of the completeness of supporting documents, halal inspection and/or testing of the product, determination of halal status in accordance with the applicable mechanism, and issuance of the halal certificate by BPJPH.
Micro and small-scale businesses that satisfy the applicable requirements may also obtain halal certification through the business operator’s halal declaration (self-declare) scheme, subject to the requirements prescribed under the applicable laws and regulations.
Implications for the Procurement and Manufacturing of Food-Grade Products
For procurement purposes, a food-grade specification should not be treated as a substitute for halal requirements. The two standards serve different regulatory and technical purposes.
A food-grade designation generally concerns the suitability or safety of a material for use in connection with food, whereas halal certification concerns compliance with the Halal Product Assurance regime, including requirements relating to the origin and composition of materials, manufacturing processes, production facilities, and other applicable halal criteria.
Accordingly, before requiring halal certification as part of procurement specifications, businesses should assess the type of product, material composition, intended function, whether the product comes into contact with food, the relevant manufacturing process, and the product classification under the applicable Halal Product Assurance regulations.
Such an approach is important to ensure that procurement requirements are not unnecessarily broad by requiring halal certificates for products or materials that are legally exempt, while at the same time ensuring that certification is obtained for products that have become subject to mandatory halal certification.
Conclusion
A food-grade product cannot automatically be regarded as halal merely because it complies with applicable food-safety standards. Conversely, not every product designated as food grade is automatically required to obtain a halal certificate.
Whether halal certification is mandatory must be determined based on the product classification, materials used, function of the product within the production process, manufacturing or processing methods, and the applicable phased implementation schedule for mandatory halal certification.
Where a food-grade product falls within a category subject to mandatory halal certification and the applicable implementation period has expired, the relevant business operator must comply with the halal certification requirements administered by BPJPH. Conversely, where the relevant product or material falls within an exempt category, the applicable exemption provisions will apply.
Therefore, for companies intending to procure or manufacture food-grade products, the appropriate approach is to first classify and assess each relevant product and material before determining whether halal certification should be imposed as a mandatory requirement in the procurement or manufacturing process.
Legal Basis
- Law No. 33 of 2014 on Halal Product Assurance, as amended pursuant to the applicable legislation concerning Job Creation.
- Law No. 6 of 2023 on the Stipulation of Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation into Law.
- Government Regulation No. 42 of 2024 on the Implementation of Halal Product Assurance.
- SiHalal electronic service system, Halal Product Assurance Organizing Agency (BPJPH).
- Self-Declare Halal Certification Module, BPJPH.
- Hukum Online
