As we know, Micro, Small and Medium Enterprises (MSMEs) are the backbone of the national economy. However, in running their businesses, MSMEs need to continue to improve their quality and competitiveness. One way that can be done is to have a halal certificate. Yes, halal certificates are very important for MSME players to increase consumer confidence in the products sold, especially in Indonesia, where the majority are Muslims. By having a halal certificate, MSME players can get various benefits and potentially expand their product network in the halal market. Moreover, based on the Halal Product Guarantee (JPH) regulation after the issuance of Law No. 11 of 2020 concerning Job Creation and Government Regulation No. 39 of 2021 concerning the Implementation of the JPH Field, the implementation of halal certificates in Indonesia is required to be faster than before. According to the JPH Law, no later than October 17, 2024 all products entered, circulated, and traded in Indonesia must be halal certified. So how important is a halal certificate for MSMEs themselves? And how to get it? Check out the full explanation in the following article.
What is Halal Certificate?
Halal certificate is an official document issued by the Indonesian Ulema Council (MUI) to state if a product has fulfilled Islamic law, both from raw materials and production processes. With this certificate, a product can be declared safe for consumption and free from haram ingredients. The standard that refers to the MUI fatwa does not only exist in Indonesia, but also in other countries for both domestic and export consumers, and does not only apply in Islamic majority countries. Therefore, the existence of a halal certificate can ensure that the product is acceptable to Muslim consumers and meets the requirements of the growing halal market.
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There are several types of businesses that are required to have a halal certificate, including:
- Processing Industry (Food, Medicine, and Cosmetics)
- Logistics Services
- Slaughterhouse
What is the Importance of Halal Certificate for MSMEs?
Head of the Halal Product Guarantee Agency (BPJPH) of the Ministry of Religious Affairs (Kemenag) M. Aqil Irham emphasized the importance of halal certificates for local MSME players, especially in facing business competition. Aqil said that many foreign or overseas food products have also applied for halal certificates for their businesses. In addition, there is the reality of the development of global halal trends, so it is hoped that local MSMEs will not close their eyes because these trends can come from secular countries or outside Muslim countries. Aqil further explained that halal has to do with broad aspects. Some of them involve hygianity or cleanliness, business, international trade, markets, reputation, and other global issues. In other words, the existence of halal certificates makes MSME products more acceptable to the public both in the domestic and international markets. In addition, here are some other benefits of halal certificates for MSMEs:
Quality Assured Products
As an MSME player, qualified product quality is needed to be able to compete in a wider market. Ownership of halal certificates for products can be a guarantor that the products sold are of high quality. This is because, to obtain a halal certificate, the product will go through a series of quality control processes carried out by the MUI Food, Drug and Cosmetics Assessment Institute (LPPOM MUI).
Increase Consumer Trust
As already explained, having a halal certificate will certainly increase consumer confidence, especially Muslims. No doubt, halal information or not is one of the main considerations for consumers to buy a product. The ownership of halal certificates for MSME players will certainly answer the doubts of potential consumers, as well as increase confidence in buying a product.
Have a Unique Selling Point
Unique selling point is one of the marketing strategies so that the products sold have more value than competitors. If you have obtained a halal certificate, of course the product is more guaranteed and has qualified quality compared to competitors who do not have it.
Reaching a Broader Market
In this easy era, it is not impossible for MSME products to reach a wider and global market. Of course, having a halal certificate is a plus for MSMEs who want their products to reach a wider market. Products can be trusted for halal and quality if they have a halal certificate to be marketed in countries or regions where the majority of the population is Muslim.
Then, how to apply for a Halal Certificate for MSMEs?
To apply for a halal certificate, MSME players need to prepare several required documents as follows:
- NIB/SIUP/SIUP/IUMK
- Business ID card
- Copy of halal provider certificate and copy of halal provider decision
- Product name and type
- List of products and ingredients used
- Product management process
After completing the above requirements, MSME players can apply for a halal certificate through the ptsp.halal.go.id page. BPJPH will check the completeness of the data and the examination is forwarded to LPH. Furthermore, the inspection report will be submitted to MUI for a fatwa hearing and the issuance of a halal certificate by BPJPH. After obtaining a halal certificate, MSME players are responsible for maintaining the halalness of the product by:
- Include halal labeling;
- Separating the location, place and slaughter, processing equipment, storage, packaging, distribution, sale and presentation between halal and non-halal products;
- Renewing the halal certificate if the validity period has expired; and
- Report changes in ingredient composition to BPJPH.
The validity period of the halal certificate is four years and three months before the validity period expires, MSME players are advised to make an extension.
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MSME players who obtain halal certificates but do not maintain product halalness will be subject to a maximum imprisonment of five years and a maximum fine of IDR 2 billion.
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How, as an MSME player, do you already have a halal certificate? Considering the benefits, don’t delay the time to take care of the halal certificate! Don’t forget, before submitting an application, MSME players must also first complete the required documents such as NPWP, NIB, and IUMK. But don’t worry, you can consult and leave all the arrangements to Kontrak Hukum! We provide solutions for MSME players who want to fulfill the legality of business licensing, ranging from NIB, business licenses, NPWP, to halal certificates. No need to worry because the services at Kontrak Hukum are guaranteed safe and affordable so it is very suitable for MSME players. Let’s make it easier to get a halal certificate by visiting the KH Services – Business Licensing page. If you have questions about other business needs, you can also contact us at Ask KH or send a direct message (DM) to Instagram @Kontrakhukum.
