Three Institutions Shape Indonesia’s Halal Certification System, Study from Universitas Indonesia Shows

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FORMOSA NEWS - Jawa Barat - Indonesia’s halal certification system now operates through a coordinated chain involving three key institutions: the Halal Product Assurance Organizing Agency (BPJPH), Halal Inspection Institutions (LPH), and the Indonesian Ulema Council (MUI). A study by Muhammad Irbabunnuha Ahasmi and Nur Fatwa from Universitas Indonesia, published in 2026 in the Formosa Journal of Sustainable Research, explains how these three actors interact to guarantee halal products for the world’s largest Muslim population.

The research highlights how Indonesia’s halal certification system has transformed significantly since the implementation of Law No. 33 of 2014 on Halal Product Assurance (JPH Law). The law shifted halal certification from a voluntary system managed mainly by religious institutions to a mandatory national system involving both state administration and religious authority.

For consumers and businesses alike, the findings provide a clearer picture of how halal certification works in Indonesia and why coordination between government agencies and religious authorities remains essential for maintaining public trust in halal products.


Why Halal Certification Matters in Indonesia

Indonesia is home to one of the largest Muslim populations in the world. According to data cited in the study, around 237.53 million Indonesians—or 86.9 percent of the population—identify as Muslim. This demographic reality makes halal assurance a critical issue in everyday consumer life, particularly in food, beverages, pharmaceuticals, cosmetics, and other consumer goods.

For Muslims, consuming halal products is not only a lifestyle choice but also a religious obligation. Ensuring that products are halal therefore requires credible institutions, clear regulations, and reliable verification processes.

The JPH Law was introduced to strengthen consumer protection while also improving Indonesia’s competitiveness in the global halal market.


From Religious Authority to State–Religious Collaboration

Before the JPH Law was enacted, halal certification in Indonesia was handled entirely by the Indonesian Ulema Council (MUI) through its Food, Drug, and Cosmetics Assessment Institute, known as LPPOM MUI.

During this period, halal certification was voluntary and largely based on religious authority. The legitimacy of halal labels depended on MUI’s religious credibility rather than formal state regulation.

The 2014 Halal Product Assurance Law fundamentally changed this system. The government established BPJPH under the Ministry of Religious Affairs to manage the administrative side of halal certification.

This reform introduced a new institutional structure designed to distribute authority among three actors:

  • BPJPH – manages administration and regulatory oversight of halal certification
  • LPH (Halal Inspection Institutions) – conducts scientific inspections and audits of products and production processes
  • MUI – determines halal status through religious rulings (fatwa)

The study explains that this division of authority was designed to prevent monopoly in certification and increase transparency and accountability.


How the Halal Certification Process Works

The research describes the halal certification process as a sequential chain involving each institution.

First, businesses submit their product registration to BPJPH, which acts as the official administrative gateway for halal certification.

After administrative verification, LPH auditors inspect the product. These inspections focus on several critical aspects:

  • raw materials used in production
  • processing methods
  • production facilities and equipment
  • potential contamination with non-halal substances

The audit results are then submitted to the MUI Fatwa Commission, where Islamic scholars examine the findings and determine whether the product meets halal requirements.

If MUI declares the product halal, BPJPH officially issues the halal certificate, allowing the product to display the halal label.

This system creates a structured process where administrative authority, scientific verification, and religious judgment each play distinct roles.


Research Method: Legal and Stakeholder Analysis

To understand how these institutions interact, Ahasmi and Fatwa used a qualitative research approach combining several methods:

  • field observations
  • in-depth interviews
  • document and policy analysis

The researchers applied Critical Legal Studies (CLS) to examine how legal structures interact with social and political factors. They also used stakeholder analysis to map the roles, interests, and relationships among BPJPH, LPH, and MUI.

This approach helped identify how cooperation between institutions contributes to building a sustainable halal industry ecosystem in Indonesia.


MUI Fatwas Still Define Halal Standards

Although administrative authority now lies with the government, the study emphasizes that MUI still holds the key authority in determining halal status.

Halal decisions are based on fatwas issued by MUI, which serve as the religious foundation for certification. Even recent government regulations—including policies on halal certification for pharmaceuticals, biological products, and medical devices—continue to reference MUI fatwas as the standard.

In practice, this means Indonesia’s halal governance combines two complementary systems:

  • state-based regulatory administration
  • religious authority rooted in Islamic jurisprudence

According to the researchers, this hybrid model has been widely accepted by both consumers and industry stakeholders.


Challenges: Need for National Halal Standards

Despite the progress made under the JPH Law, the study identifies one major challenge: Indonesia still lacks a unified national halal standard formally codified in law.

Currently, halal standards are still largely derived from MUI fatwas issued before the JPH Law came into force. Differences of opinion among stakeholders have slowed efforts to establish a binding national standard.

The absence of such a standard could create uncertainty in the certification process and affect long-term trust in the halal system.


Implications for Industry and Policy

The research highlights several broader implications for Indonesia’s halal ecosystem.

A well-coordinated certification system can:

  • strengthen consumer protection for Muslim communities
  • provide legal certainty for businesses
  • increase global competitiveness of Indonesian halal products
  • build a transparent and accountable halal industry framework

However, the study also warns that if one actor in the certification chain makes an error, the entire system’s credibility could be undermined.

“Coordination, communication, and collaboration among BPJPH, LPH, and MUI are essential for maintaining the integrity of halal product assurance in Indonesia,” explain Muhammad Irbabunnuha Ahasmi and Nur Fatwa of Universitas Indonesia in their analysis.


Author Profiles

Muhammad Irbabunnuha Ahasmi
Researcher at Universitas Indonesia, specializing in halal governance, legal policy, and institutional regulation in the halal industry.

Nur Fatwa
Academic researcher at Universitas Indonesia focusing on public policy, halal certification systems, and stakeholder governance in Islamic economic institutions.


Source

Ahasmi, Muhammad Irbabunnuha & Fatwa, Nur.
Relationships (Relational Patterns) of the Main Actors in the Halal Product Certification Chain in Indonesia.
Formosa Journal of Sustainable Research, 2026.


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