Home to world’s largest Muslim population, Indonesia is gearing up for huge sea change with the implementation of the country’s new Halal Product Assurance (HPA) Law on October 17, 2019. Manufacturers are keeping their eyes on this date as the new law will make it mandatory for all food, beverage, drug, cosmetic, chemical (used for human consumption) and organic and genetically modified products sold in Indonesia to be Halal certified.
With the clock counting down, companies producing raw materials or formulations for cosmetic products for sale in Indonesia only have a short time remaining to ensure their products can abide by this new law. From my perspective in global regulatory affairs, I believe there are several points companies should consider ahead of this looming deadline.
Compliance requirements for cosmetic products
Once the law is effective, manufacturers must be able to prove that the raw materials used in their products, as well as the equipment and production processes used to develop those products are Halal compliant.
Recognition does not guarantee compliance
Due to the different standards and regulations across markets, the challenge will be to ensure that products that have been previously Halal certified in other countries are also accepted in Indonesia. Products from overseas with Halal certifications may be acknowledged in Indonesia, however, the acknowledgment does not automatically guarantee compliance in Indonesia and will be subject to the cooperation between the concerned country’s certification bodies.
Many opportunities for the well-prepared
Despite the anxiety surrounding the impending deadline, there are plenty of opportunities for cosmetics producers to tap into this lucrative and growing market. With Euromonitor projecting the cosmetic and beauty products market in Indonesia to exceed IDR 120 billion by 2022, being able to prove you are Halal compliant will be essential to market penetration and success.
The new Halal regulation in Indonesia is not a threat but requires careful and diligent preparedness.