2019 KAHIS International Conference on Halal Industry Studies

Secretariat: Korea Institute of Halal Industry ☎+82-2-3275-1125/1175

E-mail: iheerin@gmail.com or noh.kihi@daum.net

July 29, 2019

Dr. Muhammad Yanis Musdja,

Chairman, Indonesia Halal Product Foundation (YPHI)

Re Invitation to 2019 International Conference on Halal Industry Studies

Dear Muhammad Yanis Musdja,

We are pleased to invite you for a presentation at “2019 International Conference on Halal

Industry Studies” to be held on August 2, 2019 at the COEX, Seoul, South Korea. The

conference shall be hosted by the Korea Association of Halal Industry Studies (“KAHIS”) and

held hand in hand with the Halal Trade Expo Korea from August 1 to August 3, the Korea

International Halal Conference on August 1 and International Halal Cosmetic Seminar on

August 2 at the same venue (collectively mentioned as “the Convention”). The Convention is

managed by Korea Institute of Halal Industry (“KIHI”). Especially the Korea International

Halal Conference scheduled for Aug. 1 shall be jointly held by MAFRA and JAKIM.

Due to Prof. Dr. Sukoso Chairman of BPJPH, MORA will not be able to attend this seminar,

we ask that you also give a presentation on INDONESIA'S NEW HALAL CERTIFICATION

in addition to the title of HALAL CRITICAL POINT OF COSMETIC INGREDIENT at this

event.

You will be provided with Jakarta-Seoul airfare and 2 night free accommodation during the

Convention period from August 1(check in) to August 3(check out). Your abstract and

presentation material shall be included in the Conference program book and your full thesis

shall be published on the KAHIS Journal of Halal Industry Studies scheduled for publication

in December 2019. Kindly submit your abstract and presentation material until July 19, 2019

to our staff Ms. Bella by email (iheerin@gmail.com). You may also communicate with her for

any assistance during your stay.

Looking forward to meeting you in Seoul soon

Sincerely yours,

On behalf of the Organizing Committee

James Noh, Ph.D, Director General, KIHI

Chairman of the Organizing Committee

This certificate is presented to

Dr. Muhammad Yanis Musdja, M.Sc

In recognition of your valuable contribution as :

INVITED PRESENTER

With the title

Indonesia’s new Halal certification

In the Korea International Halal Cosmetic Seminar

In COEX Conference room, Seoul, August 2, 2019

Seoul, August 2, 2019

Dr. James Noh, Dr. Geon Jang, Director General President Korea Institute of Korea Institute of Halal Industry Halal Industry

C e r t i f i c a t e o f A p p r e c i a t i o n

INDONESIA’S NEW HALAL CERTIFICATION

Dr. Muhammad Yanis Musdja, M.Sc

Chairman of Indonesian Halal Products Foundation

Former, Dean of Faculty of Pharmacy, Muhammadiyah University, TangerangFormer, Head of Department of Pharmacy, State Islamic University, Jakarta

Email : myanis88@gmail.comPhone +62 8128 1681 197

4TH Korea International Halal Cosmetic Seminar(HALCOS 2019)

ABSTRACT

In the era of free trade, halal products are a symbol for quality, safe,healthy, nutritious and guaranteed products for health. Halal productsare already a global phenomenon not only associated with religion, butalso a lifestyle choice for non-Muslims. Halal products are an attractiveemerging market for Muslims & non-Muslims, marketing halal productsis the fastest growing in the world, currently reaching around 3.3 trillionUS dollars per year to meet the needs of around 2.1 billion Muslimsplus non-Muslims who like "HALAL LIFESTYLE" In connection with this,the Indonesian parliament has made the law Halal Products AssuranceNo. 33 the year 2014. In this law halal certification has been changedfrom voluntary to mandatory and halal certificate grantor has beentransferred from LP POM MUI to the Ministry of religion affair (MORA).The law will begin to be implemented on October 17, 2019.

World’s Most Populous Country

4th 267millionPopulation (in 2019) The Biggest Population Muslim in the World

17,508islandsBiggest Archipelagic Nation

10thWorld’s Largest EconomyG20 Member State

after China 1trillionUSD GDP (PPP)

4,876USD GDP per capita (PPP)

I N D O N E S I A

2nd fastest growing

Indonesia is a country with great potential, to develop various sectors for halal products, as the bigest muslim population in the world

4

HALALANTHAYYIBAN(Halal Food & Drug for Safety)Quran Surah Al Baqarah verse 168

Healthyconcept in Islam

FASTING(For Healthy)

HOMEOSTATIS

(Balancing Chemical)

Quran, Surah

Al A’raaf Verse 31

Quran,Surah

Al Baqarah Verse 183

Islamic shariah/teachings for food & drug Management

Halalanthoyyiban is a concept that integrated for halal food & Drug safety in Islam. It is said in Al-Quran, letter of Al-Baqarah, verse 168. (2:168

O mankind, eat of that which is Halalanthoyyiban on the earth, and don’t follow the footsteps of the devil. Indeed, he is an open enemy to you.

Halalanthoyyiban composed of 2 pieces of words that come from Arabic, namely; Halal and Thoyyib.

Halal has meaning "lawful" or "permissible" and

Thoyyib has meaning “Wholesome” (safety, cleanliness, nutritious, quality, authentic).

Because of the Halalanthoyyiban (Halal &Thoyyib/Good) concept in Islam is integrated.

Therefore the product that will be proposed toobtain halal certificates, must be alreadyregistered on the National Agency of Drug andFood Control Republic of Indonesia

History of Halal products in Indonesia(Food, beverage, drug , cosmetic & items used)

Phase

1

Phase

2

Phase

3

Phase

4

The Implementation phases of Halal Products< 1989 1989-2017 2017 -2019

ObjectiveHalal Label were made by each Industries

Objetive :Halal Certification Voluntary by Majelis UlamaIndonesia (MUI)

Based on LHPA No. 33, year2014, JUST± 7 % of products have halal certification (Data Year 2014)

Objective :Transition Time for Halal CertificationFrom Voluntary Mandatory (LHPA No. 33, Year 2014

From 7% to 100% Products Have halal certification

Objective :Halal Certification Mandatory by Government(Certificate from Ministry of religion Affair / MORA)

Target 100% Products have halal certification

2019 – and soon

LHPA = LAW HALAL PRODUCTS ASSURANCE = UU JAMINAN PRODUK HALAL NO. 33, 2014

CLASSIFICATION OF PRODUCTS IN ISLAM

Halal (lawful) Haram (unlawful)

ALL FOOD are considered

halal in Islam

EXCEPT the list

under haram

Pork and its byproducts

Animals improperly

slaughtered

Animals killed in the name of

anyone other than Allah.

Alcohol and intoxicants

and its byproducts

Carnivorous animals and

birds of prey

Blood and blood byproducts

9

10

WHY ANALYSIS OF HALAL FOOD IS MORE FOCUSED ON PIG AND ITS DERIVATIVES, BECAUSEPIGS AND ITS DERIVATIVES ARE VERY WIDELY USED IN FOOD, DRUGS AND COSMETICS

Law of The Halal Product Assurance

(LHPA) Number 33 Year 2014, RI(UNDANG-UNDANG JAMINAN PRODUK HALAL

NOMOR 33 TAHUN 2014, REPUBLIK INDONESIA)

&

Indonesian Government Regulation No. 31 Year 2019 for LHPA NO. 33 YEAR 2014

(Peraturan Pemerintah Indonesia No. 31 Tahun2019 utk UU JPH No. 33 Tahun 2014)

11

The basic principles on LHPA No. 33 Year 2014 is the change of halal

certificate from voluntary becomes mandatory for Food, Drug, Cosmetic and Items used, which will begin in

October 17, 2019 and will be implemented gradually in Indonesia

12

Type of Products that will be Distributed In Indonesia According to Law of the Halal Products Assurance No. 33 Year 2014

HALAL PRODUCTSArticle 4 : Must have Halal Certificate)

Article 31, verse 2 The Result of Examination

Products by the Auditor Halal,

If No Doubt Halalness,Laboratory

examinationIs Not Required

Article 31, verse 3 The Result of Examination

Products by the Auditor Halal,

if Doubtful halalness,

should be done Laboratory

examination

HARAM (Unclean) PRODUCTS, Article 26

Products Containing Haram

material, Forbidden to get Halal Certificate,

Should be Writing “Not Halal” On

Haram Products

food

additives/

Excipient

Raw

material

By product

Logisticprocess/

transformati

on

Equipment/

mechine

Main product

distri-

bution

Waste

Consu

-ment

All these things must be HALAL

Explanation of Indonesian government regulations

No. 31 year 2019 concerning halal processes

Parliament of the Republic of Indonesia (RI)

Government Regulations about LHPA No. 31 Year 2019

LAW OF THE HALAL PRODUCT ASSURANCE (LHPA) NUMBER 33 YEAR 2014

President of RI

Majelis Ulama Indonesia

(MUI)Just give a

Fatwa

Halal Products Assurance Organizing Agency (HPAOA/BPJPH)

Regulation of Ministers of ReligiousAffair about LHPA (Still in Planning)

Ministers of Religion Affair (MORA)

Halal Audit Institute

Halal Auditor

Product Halal Certificate Product

Industry Player

Organization and Procedure for Obtaining Halal Certificate

According to LHPA, No. 33, 2014

Note:

1. Article 30, verse 2, HPGOA assign HAI for Halal analysis ≤ 5 days, since the application submitted by Industry Player

2. Article 33, verse 4. MUI give Halal Fatwa or Fatwa not halal ≤ 30 days, since delivery of Halal analysis by HPGOA

3. Article 35, HPGOA publish Halal certificate or notification is not halal ≤ 7 days from receipt of notification from MUI

4. Article 42 verse 1, Halal certificate is valid for four (4) years

5. Article 47, foreign Halal products are

imported into Indonesia, must use this Law

unless there is statement from Halal Institute

recognized by HPGOA.

But mandatory be registered by HPGOA

before products are distributed in Indonesia

(Article 47 verse 3)

6. Article 57, Industry Player that does not

keep halal products have gained the Halal

Certificate referred to in Article 25 letter b

shall be punished with imprisonment for a

maximum of 5 (five) years or a fine of Rp

2,000,000,000.00 (two billion rupiah ).

Halal Product

Certificate

Law Halal Product

Assurance

(LHPA)

GovermentRegulation

for LHPA

Regulation Minister of

Religion Affairfor LHPA

Halal Products Assurance Organizing

Agency

HalalAudit

InstituteHalal

supervisorHalal

Auditor

Majelis Ulama

Indonesia(MUI)

Thoyyiban

Halalan

INTERACTION TO OBTAIN HALAL PRODUCTS CERTIFICATE

On Article 6; The Role of Halal Products aSSURANCE Organizer Agency (HPAOA) is :

In the implementation of the HPG, HPGOA authorities:

a. formulate and establish policies HPG;

b. establish norms, standards, procedures, and criteria HPG;

c. issue and revoke the Halal Certificate and Halal Label on the product;

d. Halal certificate on registration of foreign products;

e. socialization, education, and publications Halal Products;

f. accreditation of the HAI;

g. Halal Auditor registration;

h. to supervise the HPG;

i. conduct training Halal Auditor; and

j. cooperation with domestic and foreign institutions in the field of organizing HPG.

On Article 7;

In carrying out the authority referred to in Article 6, HPAOA cooperate with:

a. ministries and / or relevant institutions;

b. HAI; and

c. MUI.

On Article 10

(1) The cooperation HPAOA with MUI as referred to in Article 7 letter c conducted in the form of:

a. Auditor certified Halal;

b. determination of halal products; and

c. HAI accreditation.

(2) Determination of halal products as referred to in paragraph (1) letter b issued in the form of Decisions Determination MUI Halal Products.

On Article 12;

The Role of Halal Audit Institute is :

(1) The Government and / or the community can

establish HAI.

(2) HAI as referred to in paragraph (1) shall have

the same opportunity in helping HPAOA

inspection and / or testing of halal products.

On Article 13;

(1) To establish HAI as referred to in Article 12, must be fulfilled requirements:

a. has its own office and equipment;

b. have accreditation from HPAOA;

c. have Halal Auditor at least three (3) persons; and

d. have laboratory or cooperation agreements with other

institutions that have laboratories.

(2) In the case of HAI referred to in paragraph (1) established by the community, HAI must be submitted by the Islamic religious institutions is legal entities.

On Article 14; 1) Halal Auditor as referred to in Article 13 letter c is appointed and dismissed by the HAI.

(2) Appointment of Auditor Halal by HAI as referred to in paragraph (1) shall meet the following requirements:

a. Indonesian citizens;

b. Muslim;

c. have the minimum education Bachelor degree in the field of food,

chemical, biochemical, industrial engineering, biology, or pharmacy;

d. understand and have knowledgeable about halal products according to

Islamic law;

e. prioritize the interests of the people above personal and / or group; and

f. obtain a certificate from MUI.

On Article 15;

Halal auditors referred to in Article 14 on duty:

a. inspect and assess the materials used;

b. inspect and assess the processing of products;

c. inspect and assess the system of slaughter;

d. researching the location of Products;

e. researching equipment, production space, and

storage;

f. inspect the distribution and presenting products

g. inspect halal assurance system Industry Player; and

h. reported the results of inspection and / or testing of

the HAI.

Provisions for Foreign Industry Player or Foreign Halal Products that will be imported their

products to Indonesia must use LHPA No. 33 year 2014 as it is said on Article 47

• (1) foreign Halal Products imported into Indonesia applicable provisions as regulated in this Law.

• (2) Halal products, as referred to in paragraph (1) does not need to request to the halal certificates along Halal Certificate issued by foreign halal institutions that have established cooperation of mutual recognition as referred to in Article 46 paragraph (2).

• (3) Halal certificate referred to in paragraph (2) shall be registered by HPGOA before products are distributed in Indonesia.

• (4) The procedure of registration referred to in paragraph (3) stipulated in Government Regulation.

Administrative sanctions for Industry Player, as it is said on Article 48;

1) Industry player do not register as referred to in Article 47 paragraph (3) subject to administrative sanctions in the form of withdrawal of goods from circulation.

(2) The provisions concerning the procedures for the imposition of administrative sanctions regulated in the Regulation of the Minister.

Criminal Provisions or Penalties for Industry

Players are Not Honest in Making Halal Products

Article 56

• Industry player is not keep halalness products have gained the Halal Certificate referred to in Article 25 letter b shall be punished with imprisonment for a maximum 5 (five) years or a maximum fine Rp.2.000.000.000,00 (two billion dollars).

Criminal Provisions or Penalties for

individual that involved as organizer HPG

Article 57

• Everyone involved in the implementation of process HPG that is not maintain the confidentiality of formulas that contained in information is submitted by industry player as referred to in Article 43 shall be punished with imprisonment for a maximum 2 (two) years or a maximum fine Rp. 2,000,000,000.00 (two billion Rupiah).

As it is said on Article 65 Government Regulation for LHPG & Regulation for

Minister of Religion Affair for LHPG

Article 65

• Regulations implementation of this Law should be established no later than 2 (two) years from the date this law is enacted.

• LHPA has been established on 17 October 2014 by President RI, Therefore Regulation for LHPA & Regulation for Minister of Religion Affair for LHPG should be established not later than 17 October 2016.

CONCLUSIONImpact of LHPA No. 33 Year 2014 that has changed the halal certificatefrom voluntary becomes mandatory. In this case, If industry playerswant to sell their products in Indonesia, it must be :

1. Industry Player have to follow the provisions of the LHPA No. 33Year 2014, Government Regulations & Regulation of The Ministerof Religious Affairs about LHPA No. 33 Year 2014

2. Because at this time, the Government Regulations & Regulation ofThe Minister of Religious Affairs about LHPG No. 33 Year 2014 isbeing planned, after this regulation is made, Industry Player mustquickly understand, to be able implement it for their products,that will be marketed in Indonesia. Where mandatory halalcertificate will begin in 2019.

• THANK YOU VERY MUCH FOR YOUR ATTENTION

• Alhamdulillahirobbil alamin

• Wassalamualaikum