Indonesia's mandatory halal rules may raise compliance burden for Indian exporters: GTRI
On October 17, Indonesia’s new halal-certification policies will take effect, significantly influencing Indian exporters across sectors. Encompassing food, cosmetics, medicines, and medical devices, these requirements are projected to increase operational costs. Indian businesses must obtain certifications from accredited entities to prevent customs disruptions and product recalls. This…
Indonesia's mandatory halal certification regulations, set to take effect on October 17, could increase the compliance burden for Indian exporters, warns the think tank GTRI. The new Halal Product Assurance regime applies to a range of imported goods including food and beverages, cosmetics, traditional medicines, health supplements and certain medical devices. Obtaining the requisite certificates carries a cost.
GTRI Founder Ajay Srivastava explained that compliance will no longer be based on self-declarations. Instead, Indian exporters must secure certification from accredited Halal Certification Bodies with Mutual Recognition Agreements with BPJPH, Indonesia's Halal Product Assurance Organizing Agency. They will also need to register all relevant information on Indonesia's SIHALAL portal and establish full traceability for raw materials, solvents, emulsifiers and other inputs to prevent contamination during production, storage and transportation.
Products containing certain ingredients such as gelatin capsules or alcohol-based formulations would require special attention. Manufacturers are advised to introduce pre-shipment audit procedures in India. Failure to comply could result in customs delays, border rejection or product recalls.
The change in the regime is significant for India as it covers major exports like frozen buffalo meat, processed foods, agricultural products, active pharmaceutical ingredients, cosmetics and chemicals. In 2025-26, India's exports to Indonesia fell by 16.52% to $4.49 billion, while imports contracted by about 11% to $20.3 billion, down from $5.38 billion and $22.8 billion respectively in the previous fiscal year.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
