New Halal Guidelines: Opportunities for Indonesia’s F&B Micro and Small Enterprises

10 September 2025

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The Halal Product Assurance Agency (Badan Penyelenggara Jaminan Produk Halal – BPJPH) has issued updated guidelines on halal certification through self-declaration for micro and small enterprises (MSEs) in the food and beverage sector. The new framework is set out in BPJPH Decree No. 146 of 2025.

Background

Following the enactment of the Job Creation Law (Government Regulation in lieu of Law No. 2 of 2022), MSEs may obtain halal certification solely through a self-declaration process. This mechanism was first implemented through BPJPH Decree No. 150 of 2022, which outlined eligibility criteria and procedures for self-declaration applications.

The new 2025 guidelines refine and expand on the earlier guidelines, introducing (i) revised eligibility criteria for MSE applicants, (ii) clarified requirements regarding the product; and (iii) an expanded list of business lines (KBLI) eligible to apply.

Key Updates

  1. New Eligibility Criteria for MSEs

    The decree introduces several notable eligibility criteria revisions:

    • Annual Revenue Threshold – MSEs with annual revenue of up to IDR 15 billion are now eligible to apply for halal certification through self-declaration. Previously, the threshold was capped at IDR 500 million.

    • Food Hygiene Certificate (Sertifikat Laik Higiene Sanitasi - SLHS) – The obligation to obtain an SLHS, which was mandatory under the previous framework, is no longer required.

    • Clarification regarding Use of Ground Meat – Where ground meat is used, it must either be processed in-house or through a halal-certified facility.

  2. Product Requirements

    Additionally, the decree also clarifies requirements regarding the products themselves. To qualify for halal certification, products must not:

    • use names or symbols that are not in compliance with Sharia law or moral norms (e.g., references to haram goods, or pig/dog imagery on packaging);

    • resemble pigs, dogs, or any haram-derived products; nor

    • imitate the taste or flavor of haram goods or meats.

  3. Expansion of Eligible KBLIs

    The new decree also broadens the scope of KBLI eligible for halal certification via self-declaration to include other types of cooking oil and cooking products industries, restaurants, as well as food and beverage street vendors (pedagang kaki lima).

    This expansion is particularly important, as the accuracy of KBLI classification is a decisive factor in the halal certification process. Applications may be rejected outright if the applicant’s KBLI does not align with those recognized under the guidelines. By expanding the KBLI scope, the new guidelines make it easier for MSEs to match their business activities with the appropriate KBLI and secure halal certification.

Why This Matters

As the world’s largest Muslim-majority country, halal certification remains a cornerstone of Indonesia’s consumer market , particularly in the food and beverage sector where consumer trust and purchasing decisions are strongly tied to the halal label. For MSEs, the updated guidelines are intended to lower barrier to entry and expand eligibility, making it easier for smaller players to participate in the halal economy.

At the same time, the importance of halal certification extends far beyond MSEs. For large businesses, obtaining and maintaining halal certification is critical to market acceptance, brand reputation, and long-term competitiveness in Indonesia. Whether for growing MSEs or large businesses, halal certification is not just a regulatory formality — it is an imperative in Indonesia’s fast-growing food and beverage scene.

 

By: Rizky Akbar Idris


DISCLAIMER:

This material is prepared for general information purposes only. It is not intended to give legal or any other professional advice, opinion or recommendation and, accordingly, it should not be relied upon. Specific legal advice should be sought before taking any action based on the contents in this material. Please contact us if you need any assistance regarding this matter.

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