The Assesment Institute for Foods, Drugs

and Cosmetics Indonesia Council of Ulama

HALAL FOOD
BUSINESS INVESTMENT
IN INDONESIA

Presented by : Sumunar Jati

Vice Director of LPPOM MUI
 Islamic Philosophy of Life

….And I did not create the jinn and mankind except to worship
Me
(Adzdzariyat : 56) Hell
Life after Judgement Day

Heaven
 Zakat Fasting
in Ramadhan Month

I declare :
there is no god worthy of worship
except Allah SWT
and Muhammad is His Messenger

Sholat Pilgrim / Hajj

Muslim World

( muslim 5,9 %)

( muslim 1,0 %)

( muslim 93,0 %) (Japanese muslim about 120,000)

( muslim 24,3 %)

( muslim 0,1%)
( muslim 30,2 %) The largest :
Total World : 7 billion
Indonesia
Total Muslim : 1,6 billion (23 %) in over 100
(210 million, 87%)
countries
AWorld
OneCultural
Column Diversity
Page Layout

Spirit of Islam
O mankind! We created you from a single (pair) of a
male and a female, and made you into nations and
tribes, that you may know each other. Verily the most
honored of you in the sight of God is the most
righteous of you. And God has full knowledge and is
well acquainted with all things. Qur’an (Al Hujurat : 13)

Purpose made nation-states and tribes in

order to help each other, mutual respect,
and mutual compassion between them, like
compassion towards himself
 The Halal Concept and Elements

• In Islam, all things are considered HALAL unless its are specifically
prohibited (by Qur’an, Hadits, Ijma’ and Qiyas)
• Halal is a set of rules “HALALAN THOYYIBAN” ( Hiegiens, Healthy and
Wholesome )

“O mankind, eat from whatever is on earth [that is] lawful and good and do not follow
the footsteps of Satan. Indeed, he is to you a clear enemy” (QS. Al-Baqarah : 168)
• HALAL must be clean and pure and made in accordance with
Islamic Law, which include prohibition of pork and its derivatives, blood
and its derivatives, animals where the name of Allah has not been
invoked during slaughter, animals which have not been slaughtered
or dead before slaughtering, carnivorous animals and items
containing alcohol/intoxicant
 Halal as New Frontier of Global Market

• Food Paradigm

1. Fit for human consumption

2. Safe for human consumption
3. Halal for muslim consumption

Customer Satisfaction

Halal Value in Supply Chain

Animal Welfare & Fair Trade
 Halal as New Frontier of Global Market
Challenges of Food Safety and Quality

If Not Safe
Even though No Value
• Delicious
• High Nutrition

garbage
•Food Safety
•Quality Standard
•Healthy & Functional Food consideration
•HALAL
Local & Global Trade
•Back to Nature
•Food Additives concern
•Label
•Convenience

Halal is a concept that can be applied to more than just the food sector. In addition to
the manufacture, processing and distribution of products, additives and food ingredients
, halal certification applies to medicines (vaccines, neutraceuticals, etc.), cosmetics and
personal care products, clothes and services such as banking, finance, hotels, restaurants
and even logistics.
 The Assesment Institute for Foods, Drugs
and Cosmetics Indonesia Council of Ulama

GLOBAL FOOD MARKET

 World People Population year 2012 : 7 Billion with minimum
food consumption US$2/day, so totally food consumption about
US$5Trillion/year. It is a HUGE MARKET.
 Nearly 600 Million consumer market in ASEAN Region :
 Indonesia 245M, Phillipines 96M, Vietnam 89M, Thailand
70M, Malaysia 29M, Singapore 5,2M
 Over 150M middle class consumers
 Heavy food importer : wheat, meat, sub tropic fish, milk,
fishmeal, subtropic fruits, cotton, dairy.
 Global exporter (palm oil, coffee; cacao; shrimp; fish, patin/dori,
rubber, pineapple, banana, coal)
 AFTA will be effective on 2015
 The Assesment Institute for Foods, Drugs
and Cosmetics Indonesia Council of Ulama

Halal in The World

 Halal is basic requirement for Moslem consumer
 Total population of Moslem in the world in 2014 is 2.08 Billion
 Muslim Population is increasing at 1.84% in 2014
 HALAL become a global issue.
 Increasing demand for halal products become opportunities for Halal
Food Producers.
 The largest of these markets are located in South East Asia and West Asia
 There is also strong demand for halal products in a number of
non-Muslim countries. These markets include India (140 million Muslims)
China (40 million Muslims), United States (8 million Muslims), Philippines
(6 million Muslims), France (6 million Muslims), Thailand (3.2 million
Muslims), Germany (3 million Muslims) and the United Kingdom
(1.5 million Muslims).
The Influence of Population toward Food Needs

1,354 M
1,214 M 198 M
143 M 127 M

0.4 M
96 M 70 M 29 M 6M
245 M 5,2 M

89 M 49 M 14 M

ASEAN = 600 million

 The Assesment Institute for Foods, Drugs
and Cosmetics Indonesia Council of Ulama

INDONESIA
 Strategic geographic location
 Population 250 millions, 90 % are Moslem (2010)
 Economic growth 5-7%/year
 54.5% middle class income in 2010 (World Bank report,
2011)
 Has the highest Gross Domestic Product (GDP) as the
member of OIC group
 The highest expenses for Food sector with total
197 Billion US Dollar or 18% from Total of Global
Expenses in Food Sector.
 Halal is very sensitive issue for Muslim consumer
The Assesment Institute for Foods, Drugs
and Cosmetics Indonesia Council of Ulama
 McKinsey Global Institute predict Indonesia will be
the 7th largest economy in the World by 2030

Source: McKinsey Global Institute, 2012

Indonesia’s Population in 2030 : >300 million, but it’ll still 165 million med-low
 Why Indonesia : Remarkable Indonesia
Growing Middle Class : Higher Demands for Better Services & Products

Number of population
in middle class income
(per capita expenditure per day $2-2
0)

Sources: Bank Indonesia & BPS-Statis

tics Indonesia, 2012 (projection)

Proportion of the population based

on per capita expenditure per day

5.5% 18.0% = 40 million people =more than the total

population of Malay
sia & Singapore com
Note: Per capita expenditure per day is adjusted to t bined.
he 2005 purchasing power parity terms.
Source: SUSENAS and World Bank staff calculations.
Opportunities of Japan for Halal Market
in Indonesia
List of Japan Company that has certified by MUI
CustomerName ProductGroup
Ajinomoto Co., Inc Spices, Seasoning and Condiments
Ajinomoto Co., Inc Sweeteners
Ajinomoto Co., Inc Protein and Amino Acids
AJINOMOTO CO.,INC. Enzyme
AJINOMOTO CO.,INC. Additives
Doutor Coffee Co.,Ltd Beverage and Beverage Ingredients
Kohjin Life Sciences Co., Ltd. Additives
Koyo Chemical Industry Co.,
Ltd. Additives
Nippon Protein Co., Ltd. Protein and Amino Acids
T. HASEGAWA CO., LTD. Flavor, Seasoning and Fragrance
YAKULT MATERIAL CO.,LTD. Flavor, Seasoning and Fragrance
Yakult Pharmaceutical Ind.Co.,
Ltd. Flour, Starch and Derivative/Processed Products
Yamasa Corporation Spices, Seasoning and Condiments
 Opportunities of Japan for Halal Market
in Indonesia
List of Japan Company that has Signed Up via Online (CEROL – SS23000)

NO CustomerName ProductGroup
1 Ajinomoto Co., Inc Sweeteners
2 Ajinomoto Co., Inc Protein and Amino Acids
3 Ajinomoto Co., Inc Spices, Seasoning and Condiments
4 K-Sense Inc Kitchen
Shiraishi Calcium Kaisha,
Others
5 Ltd
6 T. HASEGAWA CO., LTD. Flavor, Seasoning and Fragrance
Yakult Pharmaceutical Ind. Flour, Starch and Derivative/Proces
7 Co.,Ltd. sed Products
 The Assesment Institute for Foods, Drugs
and Cosmetics Indonesia Council of Ulama

Indonesia’s Gross Domestic Product

 The Assesment Institute for Foods, Drugs
and Cosmetics Indonesia Council of Ulama

According to Nielsen’s Consumer Confidence Index 2013, consumer confidence

remained strong in Southeast Asia, with Indonesia, the Philippines, Thailand
and Vietnam all ranked among the top 10 most optimistic countries globally.

Top 10 Most Confident Nations :

1. Indonesia
2. India
3. Phillipines
4. China
5. United Arab Emirates
6. Brazil
7. Thailand
8. Hongkong
9. Denmark
10. Peru
 The Assesment Institute for Foods, Drugs
and Cosmetics Indonesia Council of Ulama

The Importance of Halal Certification

in Indonesia
1. Indonesia is the largest Muslim community in the world +
90% muslim (+250 millions populations)
2. Indonesia become one of the highest halal trade and
investment destination.
3. Halal is the sensitive issue and part of Muslim Consumer
Rights : in Indonesia on 1988 and 2000 there was a sensitive
issue about products that contained pork which made
Muslim consumers refrain from consuming those products ,
resulting most companies had to stop their production.
4. The existing Halal certification process has been well
implemented and many F&B producers in Indonesia has
certified its products.
 Who Play Role
Halal Certification & Labeling in
Indonesia?
Halal Certification :
1. LPPOM MUI
2. MUI Fatwa Committee
3. Company/Producer (coordinated by
Halal Management Team)
Halal Labeling :
4. BPOM RI
 Halal Certification Process
Business/Company
2

1 3
LPPOM MUI MUI (Ulama
Council)
4
5
5

1. Company apply Halal certification to LPPOM MUI

2. LPPOM MUI audit the Company
3. LPPOM MUI report to MUI to obtain Fatwa Halal
4. MUI release the Fatwa Halal
5. LPPOM MUI release the Halal Certificate
The company n e e d to get permission from BPOM to put Halal logo on the label
 Memorandum of Understanding Between The National Agency of
Drug and Food Control and The Indonesian Council of Ulama Number
HK.08.1.53.05.13.2779 and MOU04/Dir/LPPOM MUI/V/13 Regarding
Cooperation in Halal Labeling to Processed Food Package
HALAL LABELING
Article 4
1) The FIRST PARTY shall, in accordance with the results of examination /
audit as referred to in Article 3 paragraph (1) hereof, issue a
letter of recommendation on the fulfillment of food security, quality and
nutrient to serve as a subject of consideration by the SECOND PARTY
in issuing Halal Certificate.
2) The SECOND PARTY may, in accordance with the results of
examination / audit as referred to in Article 3 paragraph (2) hereof and
in due observance of recommendation in paragraph (1) hereof, grant
Halal Certificate.
3) Halal Certificate as referred to in paragraph (2) hereof shall serve as
ground for the FIRST PARTY in granting approval on Halal labeling to
processed food package.
4) Halal labeling as referred to in paragraph (3) here of may be done only
for processed foods having Approval of Processed Food Registration.
Form of Halal labeling shall be determined by the SECOND PARTY.
 The Assesment Institute for Foods, Drugs
and Cosmetics Indonesia Council of Ulama

MUI’s Role in Halal Certification

M U I : Majelis Ulama Indonesia
(The Indonesian Council of Ulama)  Umbrella
of Islamic organizations (63) in Indonesia.
 Organization of Muslim leader and
scientist of Muslim.
 MUI stipulates for accreditation of halal
certification body overseas.
 The Assesment Institute for Foods, Drugs
and Cosmetics Indonesia Council of Ulama

Two Authority Bodies

for
Halal Certification in MUI :
1. LPPOM MUI (The Assessment Institute for Food, Drug and
Cosmetic, The Indonesian Council of Ulama) is an institution formed
by MUI to run MUI function in protecting muslim consumers in
consuming products of foods, drugs, and cosmetics.

 LPPOM MUI assists the company for scientific perspective.

2. MUI Fatwa Committee is one of MUI committees whose task to

produce an Islamic legal opinion about law status on certain case.
Members of fatwa committee are representative of Islamic
organizations in Indonesia.

 MUI Fatwa Committee for the Islamic Law (Syariah) perspective.

 The Assesment Institute for Foods, Drugs
and Cosmetics Indonesia Council of Ulama

Important Steps of Halal

Certification
I. reparation of Halal Certification by Company to fulfill
HAS Criteria
II. Halal Certification Process by LPPOM MUI :
 Registration
 Pre Audit Assessment
 On Site Audit
 Post Audit Evaluation
 Halal Certificate Issuance
 Development of New Product/production Facility
 Halal Certificate Renewal
 Procedures of Online Halal Certification
( CEROL - SS23000 )
www. e-lppommui.org

Sign Up - Login Registration

Registration Payment

Approval of
Registration Payment

Certification Data Upload

Contract Making Pre Audit Pre-Audit Monitoring

Contract Payment Audit Audit Monitoring

Approval of HAS Assessment HAS Monitoring

Contract Payment

Fatwa Commission (FC) FC Monitoring

Important Principles in Halal
Certification of MUI :
1. Scientific Judgement (LPPOM Halal Certificate Upload
Company
MUI)
2. Shariah Judgement (Fatwa Halal Certificate Download LPPOM MUI
Commission MUI)
 Halal Certification Standard
of LPPOM MUI

The Fundamental of Halal Standard of LPPOM  HAS 23000 :

Requirements of Halal Certification
MUI :  HAS 23103 :
1. Islamic Law Guidelines of Halal Assurance
2. Scientific Research System Criteria of Slaughterhouses
3. Culture  HAS 23201 :
Requirements of Halal Food Material
 HAS 23101 :
Guidelines of Compliance the HAS Criteria
In the Processing Industry
 HAS 23301 :
LPPOM MUI Guidelines of Manual Preparation of HAS
Criteria in the Processing Industry
HALAL ASSURANCE SYSTEM CONCEPT  HAS 23102 :
On Food, Drugs, and Cosmetic in Industry Guidelines of Compliance The HAS Criteria in
HAS 23000 Restaurant
 HAS 23104 :
As Halal Certification Standard
Guidelines of Compliance The HAS Criteria in Catering
 The Assesment Institute for Foods, Drugs
and Cosmetics Indonesia Council of Ulama

The LPPOM MUI HAS Criteria

1. Halal policy
2. Halal management Team
3. Training and Education
4. Material
5. Product
6. Production Facility
7. Written Procedures for Critical
Activities
8. Traceability
9. The Product Handling for Product
That Not Meet Criteria
10. Internal Audit
11. Management review
 The Assesment Institute for Foods, Drugs
and Cosmetics Indonesia Council of Ulama

11 HAS CRITERIA
 Halal Policy
Top management must establish written halal policy
which indicates the company’s commitment to produce
halal products consistently
 Halal Management Team
Company must establish a Halal Management Team
which has authority to develop, manage and evaluate
halal assurance system
 Training and Education
Company must have written procedure to train all
personnel involved in halal production
 The Assesment Institute for Foods, Drugs
and Cosmetics Indonesia Council of Ulama

11 HAS CRITERIA
 Halal Material
Company must only use Halal material for producing Halal
product
 Haram (Non Halal) material including:
 Pork
 Blood
 Carrion
 Animals which are slaughtered not according to Islamic
way
 Alcoholic beverages
 Part of Human body
 Products
All products must comply with Halal product (name and/or
intention)
 Facilities
Facilities must only used for Halal production and can not be
used for both Halal and product containing pork and pork
derivatives
 The Assesment Institute for Foods, Drugs
and Cosmetics Indonesia Council of Ulama

11 HAS CRITERIA

Written Procedures on Critical

Activities
Traceability System
Procedures for Non Conform
Products Handling
Internal Audit
Management Review
 AUDIT RESULTS
LPPOM MUI Three times
implementation
status “A”

Implementation status of HAS

Halal Certificate
HAS Certificate
xxxxxxxxxxxxxx
(Halal MUI Certificate Number)
Halal MUI Logo
TOP 10 COUNTRY
Number of Halal Certificate per Country
No Country Total Company
1 Indonesia 866

2 China 265

3 India 31

4 Malaysia 19

5 Republic of Korea 10

6 Singapore 10

7 Thailand 10

8 Jepang 9

9 Vietnam 8

10 Belarus 7
TOP 10 CATEGORY PRODUCT
No Product of Group Total Product

1 Flavor, Seasoning and Fragrance 58320

2 Oil, Fat and Processed Products 17676

3 Restaurant 13058

4 Noodles, Pasta and Processed Products 10268

5 Snack 9581

6 Beverage and Beverage Ingredients 7369

7 Cosmetic 6514

8 Plant and Processed Plant Products 5045

9 Spices, Seasoning and Condiments 4611

Chocolates, Confectioneries and Supporting

10 3061
Ingredient
 LPPOM MUI FACILITIES

Halal Lab :
LPPOM MUI has commitment to provide laboratorium in order to give
an efficient and realiable services for the sake of ummah in consuming
Halal product halal globally. Generally, the he Halal LabTM will foccusing on
the PCR* technology which can detect DNA of something ehich prohibited
until a very low unit (magnitut picogram), compare to the other technology. This lab also
developing and offering other technology services to detect non halal material which can be
found in daily life.

Analysis Scope:
1. Pig Skin examination using microscope
2. Halal Mascara Examination (Waterproof)
3. Halal Ink Examination (translucent water power )
4. Ethanol content using Cromatography Gas
5. The examination of pig protein contamination in processed and raw
Material using pork detection kit
6. Examination on Pig DNA
 INFORMATION ACCESSIBILITY

Real Time Halal info through :

• Website
• Social Media
• Contact center
• Mobile apps

Accessible anytime and anywhere :

• Desktop
• Mobile apps (BB & Android)

Accessible Halal product data through :

Online dan hardcopy
(website, jurnal halal, halal directory,
mobile APPS, apps)
MUI HALAL PROGRAM

Gadget application program using

android system to check
authentication the halal status of a
product easily. Launched on January
11, 2014.

Gadget application using blackberry

OS10 to check the halal status of a
product & restaurant as one of program
to support Shariah Tourism. Launched
on May 12, 2014
MUI HALAL PROGRAM
Halal Learning Online which held by
LPPOM MUI. First launched on
Halal Olimpiade 2014 which
followed by 2954 participant and
TOT for Halal Care Community

Cooperation with Telkomsel,

Indonesian provider as identification
of halal product system by sending
text message to 985555 with format
Halal (space) Product Name.
Launched on 22 October 2014,
 For more Information :
Info@halalmui.org
Cerolservices@halalmui.org