Indonesia Sees $1.6 Billion Windfall from Halal Labeling


Indonesia is set to make halal labeling mandatory for consumer products and services this year with the government assuming greater control of the certifying process from the Muslim-majority nation’s Islamic cleric council.

Issuing halal certificates to consumer goods from shampoos to toothpaste and cosmetics may net the government about 22.5 trillion rupiah ($1.6 billion) in annual revenue, said Sukoso, head of the Halal Product Guarantee Agency, known as BPJPH.

The draft regulation on mandatory halal labeling is awaiting President Joko Widodo’s approval, he said, according to Bloomberg.

Indonesia is overhauling the halal certification rules as the country’s Shariah economy is set to swell to $427 billion by 2022, with halal food alone accounting for more than 50 percent, according to Bank Indonesia estimates. Under a law passed in 2014, the country will need to implement compulsory halal labeling latest by Oct. 17. Halal products and services cater to Muslims by complying with the religion’s tenets.

The new rules also aim to usher in greater transparency in the certification process and guarantee a steady stream of revenue for the government, Sukoso said. The rules require certification for all goods and services related to food, beverage, drugs, cosmetics, chemical, biological and genetically engineered products as well as all consumer goods, he said.



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