Photo: Food stalls in Jakarta, Indonesia, on September 29, 2019. Widya Amrin /

Halal Industry

Indonesia’s government still working out halal certification subsidies for MSMEs - minister

Indonesia’s government is still working out subsidies for micro, small and medium-sized businesses to help them bear the costs of compulsory halal certification, said the minister of religious affairs on Wednesday.

Indonesia starts compulsory halal certification today, October 17, for all products that are halal, beginning with food and beverages.

"Regarding the subsidies for MSMEs that we are currently considering, the basic principle is that halal certification should not be a burden for businesses, especially micro businesses,” said the minister, Lukman Hakim Saifuddin.

He said the cost of halal certification for MSMEs can be borne by other parties, according to guidelines governing the implementation of compulsory halal certification.

"By other parties, we mean the central government, regional governments, including provinces, regencies and cities,” said the minister.

The level of subsidies will be left to the central and regional governments, he added.

The ministry of state-owned enterprises (BUMN) and the body for regionally-owned enterprises, BUMD, can also be involved, said the minister.

"BUMN can set aside its CSR budget, for example, to help these micro and small businesses in getting halal certification."

Fees for halal certification, which now falls under the jurisdiction of new government agency BPJPH and away from Islamic body Majelis Ulama Indonesia (MUI), will be released by the ministry of finance.

CNN Indonesia reported on Thursday that the finance ministry is rushing to release the rates on October 17, citing Andin Hadiyanto, Assistant Minister at the ministry of finance.

BPJPH is a public services agency (BLU), similar to state hospitals and universities, under the supervision of the Ministry of Finance.

The national halal certifier will use four Islamic banks to manage its funds and finances, including for investment and certification fees, its head Prof. Sukoso told Salaam Gateway in July.

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