"20 Million KRW Per Item for Indonesian Halal Certification... Mutual Recognition Agreement Needed"

SME Ombudsman Listens to Field Opinions
"Review Period Takes 6 Months" Complaints
Ministry of Agriculture and KOTRA Promise Industry Support

Industry opinions have been received emphasizing the need for a mutual recognition agreement on certification between the two countries in preparation for the mandatory implementation of Indonesia's Halal certification system. This is because individual companies face high costs and very complicated procedures when obtaining Halal certification from the Indonesian Halal Agency.

On the afternoon of the 20th, the Small and Medium Business Ombudsman held a meeting with companies entering overseas markets at the Chungbuk Regional Small and Medium Venture Business Administration in Cheongju, Chungbuk, to listen to the difficulties faced by businesspeople.

The event was attended by about 20 people, including Ombudsman Park Ju-bong (pictured), Kim Ki-han, head of the Ombudsman Support Group, Jung Sun-wook, head of the Chungbuk Regional Small and Medium Business Administration, Jang Byung-song, head of KOTRA Chungbuk Support Group, Park Se-beom, head of the Korea International Trade Association Chungbuk Regional Headquarters, and six businesspeople from Chungbuk region entering overseas markets.

At the meeting, various difficulties experienced by small and medium-sized enterprises in the export field were received and discussed.

First, there was a request to prepare countermeasures ahead of the implementation of the Indonesian government's mandatory Halal certification system.

From October 17, 2024, Halal certification will be mandatory for all food and beverage products sold in Indonesia. Products that have not obtained Halal certification, such as Haram (forbidden) products, must be labeled as non-Halal, and sellers must separate the sales counters for Halal-certified products and non-Halal products.

In the case of Malaysia, the certification of the Korea Muslim Federation (KMF) holds the same validity in Malaysia through an agreement with the Department of Islamic Development Malaysia (JAKIM), but the situation is different in Indonesia.

Currently, there is no institution in Korea that has signed a mutual certification agreement with the Indonesian government. Therefore, companies must obtain Halal certification directly from the Indonesian Halal Agency (BPJPH), and it is expected that obtaining local certification will involve high costs and considerable time.

A representative from domestic Company A lamented, "When I looked into obtaining certification, I found that we have to pay 20 million KRW per item and proceed with the local certification application process, and the review period takes more than six months." He requested, "Please support the prompt conclusion of an agreement with the Indonesian government."

The Ministry of Agriculture, Food and Rural Affairs explained that it received this request through the Ombudsman, and that two domestic Halal certification bodies have applied for mutual certification with the Indonesian Halal Certification Agency, with on-site inspections completed last year. The ministry is also supporting the response to the inspection. Furthermore, it stated that it will strive for the smooth entry of Korean agricultural products into the Halal market by requesting the Indonesian government to promptly provide inspection results.

Jang Byung-song, head of KOTRA Chungbuk Support Group, also conveyed that they will support Korean companies' entry into Indonesia by accurately understanding the mandatory Indonesian Halal certification system.

In addition, at the meeting, there were requests for ▲simplification of the FTA certificate of origin issuance procedures ▲improvements to the export roadmap system to facilitate export entry for micro-enterprises and startups ▲expansion of logistics cost support for Chungbuk agricultural product exporters ▲expansion of support for overseas joint logistics support projects ▲improvement of the voucher implementing agency satisfaction evaluation procedures.

Ombudsman Park Ju-bong said, "It is the Ombudsman's duty to listen to the difficulties of small and medium-sized enterprises and represent their voices to create what is necessary," adding, "We will continue to do our best to convey the difficulties faced in the export field to the relevant ministries so that timely support measures can be prepared."

This content was produced with the assistance of AI translation services.