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Mutual Recognition of Halal Certification: A New Era for Singapore–Indonesia Trade

Mutual Recognition of Halal Certification: A New Era for Singapore–Indonesia Trade
Credit: Indonesia Ministry of Foreign Affairs

A significant step has been taken between Singapore and Indonesia to facilitate trade in halal products. With the signing of a Memorandum of Understanding (MoU) on Thursday, August 8, the two countries will now mutually recognize each other's halal certifications. This development will create greater opportunities for companies to market their halal products in these two promising markets.

The MoU also paves the way for both countries to share knowledge and experience in various aspects of halal product development, including technology, human resources and research. This cooperation will be based on equality and mutual benefit in accordance with the regulations of each country.

The MoU was signed by the Chief Executive Officer of the Islamic Religious Council of Singapore (Muis), Kadir Maideen, and the Head of the Halal Product Assurance Organizing Agency (BPJPH) of Indonesia, Muhammad Aqil Irham.

The signing was witnessed by Singapore's Minister for Muslim Affairs, Masagos Zulkifli, and the Indonesian Ambassador to Singapore, Suryo Pratomo.

The Indonesian Embassy in Singapore announced on Facebook that the MoU will take effect on October 17. The synergy between the halal authorities of Indonesia and Singapore is significant as both countries have a long history of cooperation in various areas, including product trade, and are both members of MABIMS (Minister of Religion of Brunei, Indonesia, Malaysia and Singapore).

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What Are the Halal Certification Regulations in Both Countries?

Indonesia

As the majority of Indonesia's population is Muslim, halal certification is mandatory for food, beverages, pharmaceuticals, cosmetics and other products consumed or used by Muslims.

The primary legal basis for halal product assurance in Indonesia is Law No. 33 of 2014 on Halal Product Assurance. In addition, Government Regulation No. 39 of 2021 provides more detailed explanations on the implementation of this law.

The main objective of halal certification is to ensure that products consumed or used by Muslims meet halal requirements in accordance with Islamic law.

The government agency responsible for overseeing halal product assurance in Indonesia is the Halal Product Assurance Organizing Agency (BPJPH), while the bodies appointed by BPJPH to conduct halal inspections and certifications are known as Halal Inspection Agencies (LPH). A well-known example of an LPH is LPPOM MUI.

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Singapore

The Islamic Religious Council of Singapore (MUIS) is the sole authority responsible for issuing halal certification in the country. Since 1978, MUIS halal certification has gained global recognition and trust.

Singapore has also entered into bilateral halal certification agreements with several Muslim-majority countries, including Indonesia, Saudi Arabia, the United Arab Emirates, Jordan and Morocco.

Similar to Indonesia, the primary purpose of halal certification in Singapore is to ensure that products consumed by Muslims in the country are truly halal and compliant with Islamic law. This provides quality and safety assurance to Muslim consumers.

Ranked 7th in the Global Islamic Economy Indicator and a top Muslim-friendly destination among non-Muslim countries, Singapore has a significant share in the growing global halal industry. Its strategic location and advanced logistics infrastructure make it an ideal hub for the production, trade and re-export of halal products, supported by MUIS's globally recognized halal certification.

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