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Halal certification to raise US$1.6 billion in revenue, says official

Jakarta Post - February 12, 2019

Jakarta – The government expects to raise Rp 22.5 trillion (US$1.6 billion) in revenue from the halal certification law, which becomes effective this year, an official has said.

Law No. 30/2014 requires producers to obtain halal certification beginning Oct. 17, 2019 for a variety of products, particularly food and beverages and medicines. The certification is to be implemented in stages, says Halal Certification Agency (BPJPH) head Sukoso.

"Halal certification for food and beverage products will be implemented over the five years from 2019 to 2024, while [the certification] for drugs will be implemented over the seven years from 2019 to 2026," he said on Monday in Jakarta as quoted by kontan.co.id.

The estimated state revenue of Rp 22.5 trillion was calculated according to the number of small and medium enterprises (SMEs) and large companies operating in the country.

Statistics Indonesia (BPS) records show 58.97 million SMEs operating in the country. Sukoso said the BPJPH aimed to issue 100,000 halal certificates and recruiting up to 5,000 halal certification auditors by 2020.

The agency and related ministries had prepared a draft government regulation to support Law No. 30/2014, he said, and that all relevant ministers had signed the draft regulation, which was also to serve as the legal basis for the agency's operations.

After a meeting on halal certification last week, Religious Affairs Minister Lukman Hakim Saifuddin said that all relevant ministers had expressed their support for the draft halal regulation.

Lukman said that the draft government regulation maintained the Indonesian Ulemas Council's (MUI) three functions of issuing fatwas, approving auditors and authorizing halal inspection institutes (LPH). (bbn)

Source: https://www.thejakartapost.com/news/2019/02/12/halal-certification-to-raise-us1-6-billion-in-revenue-says-official.html