JAKARTA — The Indonesian government has extended the compliance deadline for its mandatory halal certification and labeling requirement for cosmetics by two years, moving the final date to October 17, 2028.

The extension of the transition period is designed to give the broader halal ecosystem adequate time to prepare, while providing regulatory certainty for businesses and safeguarding consumer protection.

A Growing Global Market with Clear Regulations

The policy rollout underscores Indonesia’s status as a major player in the global Islamic economy. According to The State of the Global Islamic Economy Report by Salaam Gateway, Muslim consumer spending on cosmetics reached US$84 billion in 2022—a 14.3% increase from 2021—and is forecasted to hit US$129 billion by 2027. The report identifies Indonesia and India as the top two largest markets by Muslim consumer spending in the sector.

Ahead of the initial deadline, Haikal Hasan, head of the Halal Product Assurance Organizing Agency (BPJPH), emphasized that the mandatory halal requirements—including the verification of foreign products—are non-coercive measures aimed at offering transparency rather than acting as trade restrictions. Hasan also clarified that authorities will not conduct aggressive "sweeps" or field enforcement actions against business operators during the transition.

Safeguarding Small Businesses and Curbing Illicit Imports

Recognizing that micro, small, and medium-sized enterprises (SMEs) form the backbone of the industry, the government is drafting specific carve-outs to protect business continuity. Data from the country’s Food and Drug Monitoring Agency (BPOM) reveals that over 87% of Indonesia’s 1,655 registered cosmetics businesses are SMEs, with more than 370,000 products registered as of August.

The Ministry of Industry reported that Indonesia’s cosmetics exports grew 13.7% to US$473.8 million in 2025. To further clean up the market, BPOM recently cracked down on illicit trade, seizing over 2 million illegal, unregistered cosmetics imported primarily from China, valued at approximately 27.6 billion rupiah (US$1.7 million).

Strict Compliance Guidelines and the Non-Halal Route

Under the Halal Product Assurance System (SJPH) guidelines, cosmetics manufacturers must navigate 11 critical halal control points, spanning five pillars:

Commitment and Accountability: Companies must adopt a written halal policy and appoint a dedicated Halal Supervisor.
Ingredient Sourcing: All raw materials, processing aids, packaging, and factory lubricants must be documented or certified. Pig-derived ingredients are strictly prohibited, and non-slaughtered animal derivatives are barred from products applied to the mouth or lips.
Production Separation: Facilities and equipment must maintain strict separation between halal and non-halal lines, backed by rigorous washing validation.
Labeling Rules: BPJPH-approved halal logos must be clearly visible. Alternatively, businesses handling prohibited ingredients (such as pork) may opt for a non-halal label, though these products will face intense scrutiny and cannot be used as a "free pass" to skip certification for standard products.
Ongoing Oversight: Companies are subjected to annual internal audits and biannual reporting of ingredients and production processes.
Major brands are already adapting. Earlier this year, Kao launched its halal-certified Biore Breeze deodorant in Indonesia and announced plans for local halal sunscreen production next year.

BPJPH Warns of Scams

In light of the regulatory updates, BPJPH’s Hasan urged business owners to remain vigilant against fraudsters exploiting the transition period. Scammers posing as BPJPH officials have reportedly targeted businesses, demanding payments under the guise of fines or settlement fees for halal obligations.

Embracing Tech and Longevity in Beauty

Beyond regulatory shifts, Indonesia’s beauty sector is rapidly evolving toward personalized and holistic care. Rohto Laboratories Indonesia recently partnered with Revieve to launch an AI-powered skin analyzer for tailored skincare routines. Meanwhile, ParagonCorp's Wardah debuted the Wardah Skinverse 2026: Skin Longevity Clinic, introducing holistic skin longevity practices to the market.

With the extended 2028 deadline, Indonesian regulators aim to strike a balance between high compliance standards, consumer safety, and the continuous growth of local beauty brands.

[ⓒ Global Economic Times. 무단전재-재배포 금지]