Optimizing SMEs with BPOM and Halal Certification: A Key Strategy to Increase Consumer Trust

Managing a small and medium-sized enterprise (SME) in Indonesia requires a deep understanding of various regulations that can enhance competitiveness and consumer trust. Two critical aspects in this regard are obtaining a Distribution Permit from the National Agency of Drug and Food Control (BPOM) and a Halal Certificate. These two certifications not only ensure your products meet safety and Halal standards but also significantly boost consumer confidence in what you offer.

The Importance of a BPOM Distribution Permit

Every processed food product produced or imported for trade in retail packaging in Indonesia is required to have a distribution permit. This is regulated under Law No. 18 of 2012 concerning Food, Article 91, which states that any processed food made domestically or imported for trade in retail packaging must have a distribution permit.

A BPOM distribution permit ensures that a processed food product has undergone a series of evaluations guaranteeing its safety, quality, and nutritional value. For SMEs, having a BPOM permit offers several advantages:

• Increases Consumer Trust: Products guaranteed to be safe and Halal will be more trusted by consumers.
• Expands Market Reach: It allows access to a broader market, including Muslim consumers and international markets.
• Enhances Competitiveness: Products with official certification have an added value compared to uncertified products.
• Ensures Legal Compliance: It ensures that your products comply with applicable regulations, helping you avoid legal sanctions and build a solid reputation.

The Process of Obtaining a BPOM Distribution Permit

To obtain a distribution permit, SMEs need to follow several stages:

1. Company Registration: Register the company through the BPOM e-registration system at http://ereg-rba.pom.go.id. Required documents include a Taxpayer Identification Number (NPWP), Business Identification Number (NIB), and Industrial Business License (IUI).
2. Product Registration: Apply for product registration by attaching documents such as product composition, production process, laboratory test results, label design, and shelf-life information. Complete requirements can be found in the Head of BPOM Regulation No. 27 of 2017 concerning the Registration of Processed Food.

   The food product registration process involves several steps, including determining the food type, checking requirements, and verifying documents. It is crucial to ensure that the production location is separate from residential areas and meets the Good Manufacturing Practices for Processed Food (CPPOB) standards.

3. Evaluation and Certification: BPOM will evaluate the submitted documents and, if they meet the requirements, will issue a distribution permit with a specific validity period.

The Importance of a Halal Certificate

A Halal Certificate is a crucial aspect for SMEs wanting to reach Muslim consumers in Indonesia. According to Law No. 33 of 2014 concerning Halal Product Assurance, every product that enters, circulates, and is traded in Indonesia must be Halal certified, except for non-Halal products.

Having a Halal Certificate provides comfort, security, and assurance to Muslim consumers that the products they consume comply with Islamic law. Furthermore, this certification can expand your market share and increase your product’s competitiveness in both domestic and international markets.

The Halal Certification Process

The entire Halal certification process begins with an application from the business owner to BPJPH through either the regular or self-declare route. In the regular route, LPPOM MUI acts as one of the Halal Inspection Agencies (LPH) chosen by the business to examine the raw materials, production process, and product supply chain to ensure compliance with Islamic law. After the audit is complete, LPPOM MUI submits its findings to BPJPH, which will then assess the product’s eligibility for a Halal certificate. For the self-declare route, BPJPH offers a simplified and free process for SMEs, with a Halal Product Process (PPH) companion from an LPH conducting the technical audit.

Steps to Apply for a Halal Certificate

The process of obtaining a Halal Certificate involves several steps, including:

1. Registration: The business owner registers their product with the Halal Product Assurance Organizing Agency (BPJPH).
2. Document Review: BPJPH reviews the completeness of the submitted documents.
3. Product Inspection: A Halal Inspection Agency (LPH) conducts an inspection of the product’s Halal status.
4. Halal Fatwa: The Indonesian Ulema Council (MUI) issues a fatwa on the product’s Halal status based on the inspection results.
5. Certificate Issuance: BPJPH issues the Halal Certificate after all stages are completed.

The Synergy of BPOM and Halal Certification

Holding both a BPOM distribution permit and a Halal certificate simultaneously provides significant added value for SME products. This combination ensures that a product is not only safe and high-quality but also aligns with the Halal principles that are vital to Muslim consumers. This dual certification acts as a powerful trust signal for your brand.

Government Support for SMEs

The Indonesian government continues to make efforts to facilitate SMEs in obtaining distribution permits and Halal certificates. One of its initiatives is the integration of business licensing services through the Online Single Submission (OSS) system, which simplifies the licensing process.

Additionally, BPOM offers a 50% discount on registration fees for SMEs for the issuance of food distribution permits, making the cost more affordable.

Challenges and Solutions for SMEs

Despite the significant benefits, some SMEs may face challenges in the process of obtaining BPOM and Halal certifications, such as limited resources, lack of information, or procedural complexities.

To overcome this, SMEs can utilize various government programs that support certification for small businesses. For example, the Ministry of Cooperatives and SMEs has facilitated free Halal certification for SMEs under the “self-declare” category, where products are low-risk or use pre-certified Halal ingredients, and the production process is simple.

Simplify Your Certification Journey with Magfood’s Certified Seasoning Solutions

Magfood is a producer of seasoning powders, cooking spices, and premixes that is GMP (CPPOB) certified, has a BPOM distribution permit, is Halal certified, and holds an HACCP certificate. By starting your production with ingredients that are already fully certified, you significantly simplify your own journey toward certification. Through our expert R&D division, Magfood is committed to formulating and developing innovative recipes that follow the latest trends and meet high-quality standards, enabling SMEs to compete with multinational companies.

We understand that every business has unique needs. Therefore, Magfood food seasoning can be specially formulated (custom) through our private label services to create products with a taste and price tailored to your business. This allows the food and beverages you market to have their own “unique flavor” that differentiates them from competitors, providing a competitive advantage and aligning with your established positioning strategy. Partner with Magfood to build your brand on a foundation of trust, quality, and certification.

PT MagFood Inovasi Pangan
Jl. Duren Tiga Raya No. 46, Pancoran, South Jakarta – Indonesia 12760
Tel: +6221-791 93162 (ext 101)
+6221 791 95 134
Fax: +6221-791 95364
www.magfood.com