Indonesia's New Halal Compliance Sanctions: What Businesses Need to Know in 2026
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June 24, 2026by Legal CPT Corporate

Indonesia's New Halal Compliance Sanctions: What Businesses Need to Know in 2026

Indonesia has stepped up its enforcement of halal compliance with the issuance of BPJPH Regulation No. 2 of 2026 on Administrative Sanctions for Violations of Halal Product Assurance. The regulation introduces a clearer and more structured sanctions framework that applies not only to businesses, but also to Halal Inspection Bodies (LPH), halal auditors, and other stakeholders in the halal ecosystem.

Under this framework, businesses that fail to meet halal certification requirements, maintain halal production standards, comply with reporting obligations, or follow labeling rules may face administrative sanctions. These range from written warnings and fines to certificate revocation and even product recalls.

For companies operating in the food, beverage, cosmetics, pharmaceutical, and health-related sectors, understanding these new compliance obligations is more important than ever.

Introduction to BPJPH Regulation No. 2 of 2026

Indonesia’s halal assurance system continues to evolve as the government strengthens consumer protection and accountability. BPJPH Regulation No. 2 of 2026, which came into effect on June 5, 2026, was introduced to provide clearer enforcement mechanisms for violations related to halal certification and product assurance.

The regulation applies broadly across the halal ecosystem. It covers not only business operators, but also LPH, halal auditors, and Halal Product Process (PPH) assistants involved in certification and compliance.

At its core, the regulation aims to:

  • Strengthen halal compliance enforcement across industries
  • Improve accountability among halal certification stakeholders
  • Ensure continuous compliance after halal certification is obtained
  • Protect consumers from misleading halal claims
  • Establish clear sanctions and appeal procedures for violations

Why This Regulation Matters for Businesses

This regulation marks a shift from passive oversight to active enforcement. Halal certification is no longer something businesses can treat as a one-time process, it must be maintained continuously.

Companies are expected to uphold halal production standards, report any relevant changes to BPJPH, and ensure their products remain compliant throughout their lifecycle.

Failure to do so can lead to real operational consequences, including financial penalties, revocation of halal certificates, and forced product recalls.

For businesses in highly regulated sectors, the risks of non-compliance have increased significantly.

Administrative Sanctions Under the New Halal Framework

The regulation introduces a tiered administrative sanction system, including:

  1. Written warnings
  2. Administrative fines
  3. Revocation of Halal Certificates
  4. Product recalls

The severity of the sanction depends on the nature of the violation and whether the business takes corrective action within the required timeframe. If issues are not addressed promptly, sanctions may escalate.

Common Halal Compliance Violations That May Trigger Sanctions

Several compliance failures may trigger enforcement actions under the new regulation, including:

  • Operating products that are required to be halal-certified but remain uncertified
  • Failure to provide accurate and honest information when applying for certificate
  • Failure to report changes in product ingredients or composition
  • Failure to maintain halal production processes
  • Failure to separate halal and non-halal production facilities as required
  • Improper halal labeling practices
  • Failure to include non-halal information on products containing non-halal ingredients
  • Failure to comply with halal product assurance (PPH) requirements
  • Failure to update information submitted to BPJPH

Regular internal reviews are essential to ensure these risks are identified and managed early.

Compliance Deadlines Businesses Must Meet

One of the most important aspects of the regulation is the introduction of strict compliance deadlines.

For products that have passed the halal processing period within regulations and are legally required to obtain halal certification but remain uncertified, businesses are generally given 30 working days to address the violation after receiving a written warning.

For other violations, such as failing to report ingredient changes or other compliance-related updates, businesses must generally take corrective action within 14 working days. Missing these deadlines may lead to more severe sanctions.

When Can BPJPH Order a Product Recall?

BPJPH may require businesses to withdraw products from circulation when they fail to comply with halal requirements and the violation warrants a product recall sanction.

Once a recall order is issued, businesses must remove the affected products from the market within a maximum period of 60 days.

If the business fails to carry out the recall, BPJPH may carry out a forced recall in coordination with other government authorities. This reflects a stronger regulatory focus on consumer protection and the integrity of halal-certified products.

Can a Revoked Halal Certificate Be Reinstated?

A revoked halal certificate does not necessarily prevent a company from obtaining halal certification in the future.

Under the regulation, businesses whose halal certificates have been revoked due to administrative sanctions may submit a new halal certification application after addressing the underlying compliance issues.

However, companies should expect increased scrutiny during the recertification process and should ensure that all corrective actions have been fully implemented.

Appeal Rights for Businesses Facing Sanctions

To ensure fairness, the regulation provides businesses and Halal Inspection Bodies (LPH) with the right to file an appeal for certain administrative sanctions.

Affected parties may submit an objection to the Head of BPJPH within the timeframe stipulated under the regulation.

The appeal process may apply to sanctions such as:

  • Administrative fines
  • Revocation of Halal Certificates
  • Product recall

An independent review team will assess the objection and issue a final decision. Individuals with conflicts of interest are excluded from the review process.

Compliance Strategies to Avoid Penalties

Businesses can reduce their regulatory exposure by taking a proactive approach to halal compliance. Key steps include:

  • Conduct periodic internal halal audits
  • Monitor ingredient and supplier changes continuously
  • Maintain proper documentation for all halal-related processes
  • Ensure separation between halal and non-halal production facilities
  • Establish internal reporting mechanisms for compliance
  • Train employees on halal compliance obligations
  • Create a response team to address BPJPH warnings within deadlines

Catching issues early is often the most effective way to avoid penalties and disruption.

Halal Compliance Checklist for Businesses in 2026

Use the following list to evaluate your readiness:

  • Halal certification has been obtained for all mandatory products
  • Halal certificates remain valid and up to date
  • Product ingredient changes are reported promptly to BPJPH
  • Halal production procedures are documented
  • Halal and non-halal facilities are properly separated
  • Product labeling complies with halal regulations
  • Internal halal audits are conducted regularly
  • Employees receive halal compliance training
  • A process exists for responding to BPJPH warnings within required deadlines

FAQ Section

What are the penalties for non-compliance?

Penalties may include written warnings, administrative fines, halal certificate revocation, and mandatory product recalls, depending on the severity of the violation.

Can BPJPH revoke a halal certificate?

Yes. BPJPH may revoke a halal certificate if a business fails to comply with halal assurance requirements or does not address violations within the prescribed deadlines.

How long do businesses have to respond to a compliance warning?

Depending on the violation, usually businesses may have 14 working days or 30 working days to take corrective action after receiving a written warning.

When is a product recall required?

A recall may be ordered for serious violations, such as failing to obtain required certification, not reporting material changes, or failing to properly label certified products.

Can companies appeal BPJPH administrative sanctions?

Yes. Businesses may file an objection to BPJPH within five days from the date the sanction is imposed.

Can a revoked halal certificate be obtained again?

Yes. Businesses may apply for a new halal certificate after resolving the compliance issues that led to the revocation.

Conclusion

BPJPH Regulation No. 2 of 2026 signals a clear shift toward stricter and more active enforcement of halal compliance in Indonesia. With tighter deadlines, stronger sanctions, and the possibility of product recalls, businesses need to move beyond a reactive approach.

Companies in affected sectors should take this opportunity to review and strengthen their halal assurance systems, reporting processes, and internal controls to ensure full and ongoing compliance.

Need Help Maintaining Halal Compliance in Indonesia?

Navigating Indonesia's evolving halal regulatory framework can be challenging. CPT Corporate provides professional assistance for halal certification, compliance reviews, regulatory filings, and business licensing support to help your company remain compliant and avoid costly sanctions.

Contact CPT Corporate today to discuss your halal compliance needs and ensure your business stays ahead of regulatory changes.

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