Indian Exporters May Face Higher Compliance Costs From Oct 17 as Indonesia Tightens Halal Certification Rules: GTRI

New Delhi, Oct 6 (KNN) Indonesia's mandatory halal-certification requirements, coming into effect from October 17, are likely to increase compliance costs and procedural burdens for Indian exporters, think tank Global Trade Research Initiative (GTRI) said on Monday.

The requirements under Indonesia's Halal Product Assurance regime will apply to imported food and beverages, cosmetics, traditional medicines, health supplements and certain medical devices.

GTRI said the changes are significant for India as Indonesia imports several products from these sectors, including frozen boneless buffalo meat, processed foods, agricultural products, active pharmaceutical ingredients, cosmetics and chemicals, PTI reported.

Certification, Traceability Requirements

GTRI Founder Ajay Srivastava said Indian exporters would no longer be able to rely on self-declarations and would need certification from accredited Halal Certification Bodies having Mutual Recognition Agreements with Indonesia's Halal Product Assurance Organizing Agency (BPJPH).

The required information must also be registered on Indonesia's SIHALAL portal, while manufacturers will need to establish traceability for raw materials, solvents, emulsifiers and other inputs.

“Failure to complete certification or pre-shipment verification could lead to customs delays, border rejection or product recalls,” Srivastava said.

Manufacturers would also need to prevent contamination during production, storage and transportation and introduce pre-shipment audit procedures in India. Products containing ingredients such as certain gelatin capsules or alcohol-based formulations may require additional scrutiny, he said.

Srivastava urged Indian companies to begin preparations immediately, saying early certification, supply-chain checks and coordination with recognised inspection bodies would be essential to avoid disruptions after the October 17 deadline.

A leather industry expert also said the new requirements would add to compliance costs for Indian exporters.

India-Indonesia Trade

India's exports to Indonesia declined 16.52 per cent to USD 4.49 billion in 2025-26 from USD 5.38 billion in 2024-25. Imports also fell around 11 per cent to USD 20.3 billion from USD 22.8 billion in the previous fiscal.

Halal certification is an official certification issued by an authorised Islamic body confirming that products or services comply with Islamic dietary and Shariah requirements.

(KNN Bureau)