2020-28: Indonesia: Multiple Commodities: Halal Law Update

Date of issue: 21 December 2020

Date of effect: Immediate

Attention:

• Industries—Industry bodies – Dairy Australia, Dairy Export Industry Consultative Committee, Australian Egg Corporation Limited, Seafood Export Consultative Committee, Australian Food and Grocery Council (AFGC), Australian Honey Bee Industry Council (AHBIC)
• Export establishments for the following commodities; dairy, egg, seafood, processed foods, honey and other apiculture products
• Licensed exporters
• Department of Agriculture, Water and the Environment—Central and Regional offices

Purpose

To notify exporters of new Indonesian import halal requirements that will impact exports of Australian agricultural produce to Indonesia.  

Summary of key points

• Indonesia’s Law 33/2014 regarding Halal Product Assurance (the Halal Law) entered into force on 17 October 2019 with a five-year phased implementation period for food and beverage products.
• The Halal Law imposes new requirements for all goods exported to Indonesia, including non-halal goods, and impacts services associated with exports. Australian producers, halal certifiers and exporters will be required to meet these requirements when exporting to Indonesia.
• It is important to note that the staged implementation began on 17 October 2019 and that trade impacts will be incremental.
• Agricultural commodities subject to Halal requirements upon import into Indonesia, which are not covered by the Australian Government Authorised Halal Program (AGAHP), , are halal certified under commercial arrangement.

The department will provide further advice on meeting Indonesia’s halal requirements as it becomes available.

Key requirements under the Halal Law

1. New halal certification and labelling requirements

• The Halal Law expands the scope of goods requiring mandatory halal certification beyond goods that have traditionally been required to be designated halal (Articles 2 and 68 of Government Regulation 31/2019), and extends the requirement to include export services such as slaughtering, processing, storage, packaging, transport, marketing and presentation.
• The Halal Law also introduces additional labelling requirements, including mandatory label identification of non-halal products. Under current arrangement, non-halal products exported to Indonesia were not required to be labelled as ‘non-halal’.
• Halal product labels currently approved by Majelis Ulama Indonesia (MUI) will continue to be accepted until 16 October 2024 As such, Australian halal certifiers are not required to update their halal labels until existing accreditation of halal certifiers is renewed with the Halal Product Assurance Organising Agency (BPJPH).
• At the time of issuing of this market access advice (MAA), the department understands that products and/or services that were not subject to halal certification requirements prior to 17 October 2019 can continue to be exported to Indonesia under previous arrangements until their respective transition period has concluded or until advised of a change in requirements.

The transition periods for the relevant product classes is outlined below:

• Indonesian authorities are in the process of developing further ministerial regulations that detail the scope of products classified as halal and non-halal and the non-halal labelling requirements. The department will advise industry of these requirements as information becomes available.

2. Segregation of halal and non-halal products

• The Halal Law requires complete segregation of halal products from non-halal products (i.e. dedicated halal supply chains) during production, processing, storage and transportation. For products not subject to AGAHP, this requirement will need to be met through commercial halal arrangements.
• There are provisions for Indonesian authorities to engage with foreign countries to establish halal reciprocity. The department will seek acceptance of the segregation measures provided by existing halal assurance systems.

Departmental engagement with Indonesian authorities

• The Department of Agriculture, Water and the Environment is working with Indonesia’s Ministry of Agriculture and Ministry of Religious Affairs to ensure Australian products meet Indonesian consumer requirements.
  • Both ministries hold a regular Halal Cooperation Dialogue (HCD) to facilitate collaboration on halal matters.
  • The department will use the HCD to work collaboratively with Indonesian Halal regulators to proactively address issues with the Halal Law which have the potential to affect ongoing trade.

The department will provide further advice as it becomes available, to assist exporters in meeting Indonesia’s requirements.  

Further information

Contact exportstandards@awe.gov.au if you have any queries.

The information provided in this advice is current at the time of writing and is intended for use as guidance only and should not be taken as definitive or exhaustive. The Commonwealth endeavours to keep information current and accurate, however, it may be subject to change without notice. Exporters are encouraged to verify these details with their importers prior to undertaking production/exports. The Commonwealth will not accept liability for any loss resulting from reliance on information contained in this notice.