KBLI 2025 and Halal Certification: Which Business Codes Require It in Indonesia

KBLI 2025 and Halal Certification: Which Business Codes Require It in Indonesia

If you're running a food business in Indonesia—whether that's a restaurant in Bali, a beverage manufacturing plant in Jakarta, or an organic cosmetics brand—you need to know this: halal certification is now mandatory.

Under UU 33/2014 (Undang-Undang Jaminan Produk Halal), all food, beverages, and certain other consumer products entering or circulating in Indonesia must be halal-certified, unless explicitly labeled as "TIDAK HALAL" (Not Halal).

With the KBLI 2025 update now in effect (transition deadline June 2026), understanding which business classification codes require halal certification—and how to get it—is critical for legal compliance and market access.

This guide covers:

• Which KBLI codes require halal certification
• The BPJPH certification process (step-by-step)
• Cost breakdown and timeline
• Bali-specific considerations (alcohol, pork, foreign-owned F&B)
• Exemptions and penalties

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What is Halal Certification and Why is it Mandatory?

Halal certification verifies that a product complies with Islamic law (Sharia), meaning it:

• Contains no prohibited ingredients (pork, alcohol, blood, carnivorous animals)
• Is processed using halal methods (separate equipment, no cross-contamination)
• Follows supply chain integrity from raw materials to final product

Legal Basis:

• UU 33/2014 (Undang-Undang Jaminan Produk Halal) - enacted October 17, 2014
• PP 39/2021 (Peraturan Pemerintah) - implementing regulations
• Enforcement deadline: October 17, 2024 (5 years after enactment)

Who issues certification?

• BPJPH (Badan Penyelenggara Jaminan Produk Halal) - government authority under the Ministry of Religious Affairs
• LPH (Lembaga Pemeriksa Halal) - halal auditors (e.g., MUI, LPPOM MUI)
• SIHALAL system - online registration portal (https://sihalal.go.id)

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Which KBLI 2025 Codes Require Halal Certification?

Here's a breakdown of KBLI categories that fall under the halal certification mandate:

Food Manufacturing (KBLI 10xxx)

All food manufacturing codes require halal certification, including:

Exemption: If your product contains pork or other non-halal ingredients, you must label it "TIDAK HALAL" and follow non-halal product regulations (separate storage, clear signage).

Beverage Manufacturing (KBLI 11xxx)

Alcohol exemption: Alcoholic beverages (beer, wine, spirits) are exempt from halal certification but must comply with labeling laws and excise regulations.

Restaurants, Cafes, and Catering (KBLI 56xxx)

All food service businesses require halal certification or non-halal labeling:

Bali-specific note: Many restaurants in Bali serve pork (babi guling) or alcohol. These businesses must:

1. Label menus with "TIDAK HALAL" for non-halal dishes
2. Store ingredients separately (no cross-contamination)
3. Train staff on halal vs. non-halal handling

Retail Food Sales (KBLI 47xxx)

Note: Retailers don't need halal certification for their business, but all food/beverage products they sell must be halal-certified or labeled "TIDAK HALAL".

Cosmetics and Personal Care (KBLI 20xxx)

Yes, cosmetics too! Under UU 33/2014, cosmetics are subject to halal certification:

Why cosmetics? Many cosmetics contain animal-derived ingredients (collagen, glycerin, carmine dye). Halal certification ensures no pork-derived or prohibited ingredients.

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The BPJPH Halal Certification Process: Step-by-Step

Here's how to obtain halal certification through BPJPH (Badan Penyelenggara Jaminan Produk Halal):

Step 1: Register on SIHALAL System

1. Visit https://sihalal.go.id
2. Create a business account (NIB, NPWP, company profile)
3. Submit a Halal Product Registration Form (Formulir Permohonan Sertifikat Halal)

Documents required:

• Company registration (PT PMA deed, NIB, TDP)
• Product list (name, ingredients, production process)
• Material Safety Data Sheet (MSDS) for each ingredient
• Production flowchart
• Halal Management System (HAS 23000) documentation (optional but speeds up approval)

Step 2: Self-Declaration and Payment

1. Submit a self-declaration (Pernyataan Mandiri) confirming your product meets halal standards
2. Pay the certification fee (see cost breakdown below)

Step 3: LPH Audit

BPJPH assigns an LPH (Lembaga Pemeriksa Halal) to conduct an on-site audit:

• Ingredient verification (supplier certificates)
• Production process inspection (equipment, storage, handling)
• Staff interviews (training on halal procedures)

Duration: 1-2 weeks (depending on business size and product complexity)

Step 4: BPJPH Review and MUI Fatwa

1. LPH submits audit report to BPJPH
2. BPJPH requests a fatwa (religious ruling) from MUI (Majelis Ulama Indonesia)
3. MUI reviews the case and issues a halal determination

Duration: 1-3 months (MUI meets monthly to review cases)

Step 5: Certificate Issuance

1. BPJPH issues a Halal Certificate (Sertifikat Halal) valid for 4 years
2. You receive a halal logo to display on packaging, menus, and marketing materials
3. Certificate can be verified online via SIHALAL

Total timeline: 2-6 months from application to certificate

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Cost Breakdown: How Much Does Halal Certification Cost?

The cost of halal certification varies by business size and product complexity:

Additional costs:

• LPH audit fee: IDR 2-10 million (depending on auditor and product count)
• HAS 23000 certification: IDR 5-15 million (optional, but recommended for faster approval)
• Renewal fee: 50% of initial cost (every 4 years)

Government subsidy: Micro and small businesses (under IDR 2.5 billion revenue) can apply for subsidized or free certification through BPJPH's SME program.

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Bali-Specific Considerations for Halal Certification

Bali presents unique challenges for halal compliance due to its Hindu-majority population and tourism-focused F&B industry:

1. Restaurants Serving Pork or Alcohol

Problem: Many Bali restaurants (babi guling, beachfront bars) serve pork or alcohol.

Solution:

• Option A: Don't get halal certification. Instead, label all menus/dishes as "TIDAK HALAL" (Not Halal).
• Option B: Separate operations—halal kitchen/menu + non-halal kitchen/menu (common in hotels).

Legal requirement: You must choose one or the other. Unlabeled non-halal food is a violation.

2. Foreign-Owned F&B Businesses (PT PMA)

Challenge: Many expat-owned cafes, bakeries, and restaurants in Bali don't realize halal certification applies to them.

Reality check:

• If you hold KBLI 56101-56309 (restaurants/cafes), halal rules apply
• Foreign ownership doesn't exempt you
• No certification = must label "TIDAK HALAL"

3. Imported Ingredients

Challenge: Many Bali cafes import specialty ingredients (cheese, sauces, supplements) from abroad.

Halal requirement:

• Imported ingredients must have halal certification from a recognized LPH (e.g., JAKIM Malaysia, HFA Australia, IFANCA USA)
• BPJPH maintains a list of recognized international halal certifiers
• Check supplier certificates before importing

4. Tourism Marketing

Opportunity: Halal certification opens access to Muslim tourist markets (Middle East, Malaysia, Brunei).

Bali halal tourism stats (2025):

• 20% of Bali tourists are Muslim (Malaysia, Indonesia domestic, Middle East)
• Halal-certified restaurants see 30-40% higher bookings from Muslim travelers
• HalalTrip, Crescentrating, and other platforms prioritize halal-certified venues

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Exemptions: When is Halal Certification NOT Required?

Certain products and businesses are exempt from halal certification:

1. Alcoholic Beverages

KBLI 11060 (beer, wine, spirits) is exempt. However:

• Must comply with excise tax (DJBC regulations)
• Must be labeled with alcohol content
• Cannot be marketed as "halal"

2. Pork Products (if labeled)

Pork-based products (KBLI 10111 - pork processing) are exempt if clearly labeled:

• Packaging must say "MENGANDUNG BABI" (Contains Pork) or "TIDAK HALAL"
• Must be stored separately from halal products
• Retailers must have separate display areas

3. Export-Only Products

Products manufactured in Indonesia but only for export (not sold domestically) are exempt. However:

• Must declare export-only status to BPJPH
• Cannot be sold in Indonesian market without certification

4. Non-Food Consumer Goods

Furniture, electronics, textiles (non-ingestible, non-topical products) are exempt. However:

• Cosmetics (topical) are covered
• Pharmaceuticals and supplements are covered (under separate BPOM + halal rules)

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Penalties for Non-Compliance

What happens if you don't get halal certification?

Administrative Penalties

• Warning letter from BPJPH (first violation)
• IDR 50-200 million fine (repeat violations)
• Business license suspension (severe cases)
• Product recall (if sold without halal certification or non-halal labeling)

Criminal Penalties (UU 33/2014, Article 56)

• Prison: Up to 5 years
• Fine: Up to IDR 2 billion
• Applies to: Businesses that falsely claim halal certification or intentionally mislabel products

Market Consequences

• Retailer rejection: Major supermarkets (Alfamart, Indomaret, Hypermart) refuse non-certified products
• Consumer backlash: Social media complaints, boycotts
• Loss of Muslim market: 87% of Indonesia's population is Muslim

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How to Apply for Halal Certification: Practical Checklist

Before You Apply

• Register your business (NIB, NPWP, PT deed)
• Choose your KBLI code(s) correctly (see KBLI 2025 Navigator)
• Document your supply chain (ingredient suppliers, production process)
• Obtain supplier halal certificates (for all raw materials)
• Implement basic halal procedures (separate storage, staff training)

Application Process

• Create an account on SIHALAL
• Upload company documents (NIB, NPWP, deed, product list)
• Submit self-declaration (Pernyataan Mandiri)
• Pay certification fee (or apply for subsidy)
• Schedule LPH audit (BPJPH will assign an auditor)
• Prepare for on-site inspection (clean facility, train staff)
• Wait for MUI fatwa (1-3 months)
• Receive certificate and download halal logo

After Certification

• Display halal logo on packaging, menus, website
• Train staff on halal compliance (no cross-contamination)
• Renew certificate every 4 years
• Monitor supplier certificates (re-verify annually)

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Common Mistakes to Avoid

1. "I Serve Muslim Customers, So I'm Already Halal"

Wrong. Halal certification is a legal requirement, not a marketing choice. Even if your customers are 100% Muslim, you must have BPJPH certification or non-halal labeling.

2. "I'll Get Halal Certification Later"

Risk: If you're operating without certification (and without "TIDAK HALAL" labels), you're in violation of UU 33/2014. Start the process now—it takes 2-6 months.

3. "Halal Certification is Too Expensive"

False. Micro/small businesses (under IDR 2.5 billion revenue) can get free or subsidized certification. Even medium businesses pay only IDR 5-15 million—far less than potential fines or market loss.

4. "I'm in Bali, So Halal Rules Don't Apply"

Wrong. UU 33/2014 is a national law. Bali, Jakarta, or Papua—same rules. If you serve pork/alcohol, just label it "TIDAK HALAL". Don't ignore the law.

5. "My Supplier Says It's Halal"

Not enough. You need documented halal certificates from suppliers. Verbal assurances don't count. BPJPH auditors will ask for supplier certificates during the LPH audit.

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How Bali Zero Can Help

At Bali Zero, we specialize in helping foreign investors and local businesses navigate Indonesia's complex regulatory environment—including halal certification.

Our Halal Certification Services

1. KBLI Code Verification - Ensure your business classification aligns with halal requirements
2. SIHALAL Application Support - We handle the entire registration and documentation process
3. LPH Audit Preparation - Train your staff, organize your supply chain, prepare your facility
4. Supplier Certificate Verification - We verify halal certificates for imported and domestic ingredients
5. Ongoing Compliance - Annual audits, staff training, certificate renewal reminders

Contact us:

• Website: balizero.com
• Email: hello@balizero.com
• Consultation: Book a free 30-minute call via our website

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Frequently Asked Questions

Is halal certification mandatory for restaurants in Bali?

Yes. All restaurants (KBLI 56101-56309) must either obtain halal certification or explicitly label products as "TIDAK HALAL". Many Bali restaurants serving pork or alcohol must use non-halal labeling.

How much does halal certification cost?

Small businesses (turnover under IDR 500M/year) can get subsidized or free certification. Medium businesses pay IDR 5-15 million. Large companies may pay IDR 15-50 million+ depending on product complexity.

Can I sell non-halal food in Indonesia?

Yes, but it must be clearly labeled "TIDAK HALAL" with proper labeling, stored separately, and not mixed with halal products. This applies to pork, alcohol, and other non-halal items.

Does cosmetics manufacturing need halal certification?

Yes. KBLI 20231-20232 (cosmetics and personal care manufacturing) requires halal certification under UU 33/2014. The deadline for cosmetics was 2026.

How long does the halal certification process take?

2-6 months from application to certificate. The timeline depends on:

• Document completeness
• LPH audit scheduling
• MUI fatwa review (monthly meetings)

What happens if I don't get halal certification?

Consequences:

• IDR 50-200 million fines
• Business license suspension
• Product recall
• Criminal penalties (up to 5 years prison, IDR 2 billion fine) for false halal claims

Can I get halal certification for imported products?

Yes, but you need:

• Halal certificates from recognized international certifiers (JAKIM, HFA, IFANCA, etc.)
• BPJPH verification of foreign certificates
• Separate registration for each imported product

Do bars and nightclubs need halal certification?

No, if they only serve alcohol (KBLI 56302). However, if they serve food, they must:

• Get halal certification for food items, OR
• Label food as "TIDAK HALAL"

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Key Takeaways

1. Halal certification is mandatory for all food, beverages, cosmetics, and restaurants under UU 33/2014
2. KBLI codes 10xxx, 11xxx, 56xxx, and 20231-20232 are all covered
3. BPJPH is the certifying authority; apply via SIHALAL
4. Cost: IDR 0-50 million (small businesses often subsidized)
5. Timeline: 2-6 months from application to certificate
6. Bali businesses: If you serve pork/alcohol, label as "TIDAK HALAL"—it's legal and required
7. Penalties: Fines, license suspension, and criminal charges for non-compliance
8. Muslim market opportunity: Halal certification opens access to 87% of Indonesia's consumers + Muslim tourists

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Next Steps:

1. Verify your KBLI code matches your actual business activities
2. Start the SIHALAL registration process (don't wait until the last minute)
3. Document your supply chain and obtain supplier halal certificates
4. Budget IDR 5-15 million for certification (or apply for subsidy)
5. Consult with Bali Zero for expert support and faster approval

Need help with halal certification? Book a free consultation with Bali Zero and let our experts guide you through the process.

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This article is part of the KBLI 2025 compliance series. For more guides, visit our Business Setup Hub.