BPOM and Halal Certification: Undeniable Advantages for SMEs Looking to Expand

Efforts to expand market reach for Small and Medium Enterprises (SMEs) in Indonesia often encounter various challenges. One essential aspect that SME players must consider is ensuring that the products they offer meet government-set standards, both in terms of safety and halal compliance. In this context, two highly influential major certifications are the distribution license from the Food and Drug Supervisory Agency (BPOM) and halal certification. Both certifications play a crucial role not only in ensuring product quality and safety but also in providing various strategic advantages that can support business expansion.

Advantages of Having a BPOM Distribution License

BPOM, tasked with overseeing the circulation of drugs, food, and other health products, plays an essential role in maintaining consumer safety. For business actors, obtaining a distribution license from BPOM holds a number of significant benefits:

1. Ensuring Product Safety and Quality
   BPOM certification guarantees that products circulating in the market have met safety and quality standards set by the government. This is critical to prevent hazardous or substandard products from entering the market.
2. Increasing Consumer Trust
   With a BPOM distribution license, consumers will feel more confident and secure when purchasing products holding this certification. Consumer trust is vital in building a business’s long-term reputation.
3. Expanding Market Access
   Products that have obtained a BPOM distribution license have a greater chance of entering a broader market. This applies not only to the domestic market but also to international markets that prioritize product safety.
4. Supporting Business Expansion
   For SMEs looking to grow, a BPOM distribution license can unlock opportunities to collaborate with large distributors, retailers, and even exporters. This gives SMEs the chance to become better known in the global market.

Advantages of Having Halal Certification

Halal certification, issued by the Indonesian Ulema Council (MUI) through the Halal Product Assurance Organizing Agency (BPJPH), is a certification ensuring that a product meets the requirements established in Islam. In Indonesia, where the majority of the population is Muslim, halal certification holds massive influence, both in the domestic and international market contexts. Some advantages gained from halal certification include:

1. Increasing Consumer Trust
   Halal certification guarantees that the consumed product meets halal standards, which encompass raw materials, the production process, and presentation methods. This is an essential factor for Muslim consumers who prioritize the halal aspect when selecting products.
2. Expanding Market Share
   Halal-certified products can be easily accepted by Muslim consumers, not only in Indonesia but also in countries with large Muslim populations. Thus, halal certification becomes the key to unlocking export opportunities, whether to Asian countries, the Middle East, or even Europe and America.
3. Increasing Competitiveness
   Halal-certified products possess an added value that makes them superior in the market. This is especially true for products highly dependent on consumer trust, such as food, beverages, cosmetics, and health products. With the rising consumer awareness regarding the importance of halal products, the competitiveness of halal-certified products is strengthening.
4. Meeting International Regulations
   Several countries require halal certification for certain products, primarily in the food and beverage sector, before they can be marketed in their territory. Therefore, by obtaining halal certification, SMEs can comply with the necessary regulations to enter international markets and market their products legally.

The Process of Obtaining a BPOM Distribution License and Halal Certification

To obtain a BPOM distribution license and halal certification, business actors must follow several established procedures. Although the process requires time and precision, the final result will yield many benefits for business continuity.

1. Process for Obtaining a BPOM Distribution License
   • Company Account Registration: Business actors must first create an account on the BPOM registration system (ereg-rba.pom.go.id).
   • Application Submission: Once the account is registered, business actors can submit a distribution license application by attaching necessary documents, such as product data, the production process, and laboratory test results.
   • Evaluation and Verification: BPOM will evaluate the submitted application, including possible inspections of production facilities to ensure the product meets established standards.
   • Issuance of Distribution License: If the evaluation and verification are complete and meet the requirements, BPOM will issue a distribution license for the product.
2. Process for Obtaining Halal Certification
   • Application Submission: Business actors submit a halal certification application to the Halal Product Assurance Organizing Agency (BPJPH), including necessary documents such as business actor data, raw materials used, and a production process flowchart.
   • Inspection by a Halal Inspection Agency (LPH): LPH will audit the production process and raw materials to ensure the product meets halal standards.
   • Halal Fatwa by MUI: The Indonesian Ulema Council (MUI) will issue a halal fatwa after examining the product and its production process.
   • Issuance of Halal Certificate: After the halal fatwa is issued, BPJPH will issue a halal certificate for the product.

As a real-world example, Magfood’s Various Flavors seasoning powder products have successfully obtained a BPOM distribution license and halal certification. By holding both certifications, Magfood can ensure its products are safe and comply with the halal principles expected by consumers. This not only increases consumer trust but also expands Magfood’s market share, both in domestic and international markets.

Obtaining a BPOM distribution license and halal certification is a highly essential strategic step for SMEs looking to develop and expand their business. Both certifications guarantee that the marketed products not only meet established safety and quality standards but also possess an added value that can increase competitiveness in the market. Furthermore, these certifications open up opportunities to expand market reach, both domestically and internationally. Therefore, it is highly recommended for SME actors to promptly process these two certifications to support the growth and sustainability of their business.

Magfood: Various Flavors Seasoning Powder

Seasoning powder with various flavor options that can be adapted to your products such as chips, crackers, popcorn, nuts, extruded snacks, or booth snacks like french fries, fried sausages, cimol, and so on. Also various cooking seasonings and powder beverages for restaurant chains and franchises.

Magfood Various Flavors Snack Seasoning is available in sweet and savory options. Sweet flavors like chocolate, milk, green tea, vanilla, choco vanilla, moccachino, tiramisu, and others. The savory flavors you can choose from include various cheeses, BBQ, roast beef, pizza, various balado, various corn, grilled chicken, garlic chicken, black pepper chicken, seaweed, various spicy seasonings, and many more.

The formulation of Magfood Various Flavors Snack Seasoning sticks more easily to the product when applied and does not result in much waste, making it more efficient for snack manufacturers. The balanced taste and aroma are very easy for consumers to enjoy because they are not overpowering.

Magfood Provides Custom Formulated Food Seasoning for Your Business

Magfood is CPPOB-certified and has obtained a BPOM distribution license, Halal, and HACCP certificates. Through its research & development (R&D) division, which is capable of formulating and developing high-quality recipes with the latest tastes and trends, Magfood is able to compete with multinational companies.

Magfood food seasoning can be custom formulated to achieve products with tastes and prices tailored to your business products. So that the food and beverages you market have their own “unique flavor” that is different from competitors, possess competitiveness (competitive advantage), and can be aligned with the established positioning strategy.

Magfood Inovasi Pangan

Jl. Duren Tiga Raya No. 46, Pancoran, Jakarta Selatan – Indonesia 12760

Telp : +6221-791 93162 (ext 101)

+6221 791 95 134

Fax : +6221-791 95364

www.magfood.com