Ultimate Guide to Indonesia’s Halal Skincare Laws, BPOM Compliance & Certification
Halal Korean skincare Indonesia regulations
Introduction: Why Indonesia's Halal Skincare Regulations Matter
Indonesia stands as the world's largest Muslim-majority nation, home to over 280 million people – roughly 87% of whom adhere to Islamic practices1. This demographic reality has transformed it into Southeast Asia’s premier halal skincare market, with a cosmetics industry valued at $1.86 billion (2025)3. Here’s why these regulations matter for global beauty brands:
Rising Demand for Shariah-Compliant Skincare
Local halal-certified brands like Wardah and Mustika Ratu dominate the market, capturing trust through culturally aligned products that exclude prohibited ingredients like alcohol and pork derivatives4. This demand isn’t just religious – non-Muslim consumers increasingly view halal certification as a marker of safety and ethical production1. With BPOM (Indonesia’s FDA equivalent) enforcing strict surveillance, imported products face stringent scrutiny to ensure compliance with halal, safety, and labeling standards3.
2026 Certification Deadline: A Game-Changer for Brands
From October 17, 2026, all cosmetics sold in Indonesia must carry halal certification5. This mandate impacts international brands – including Korean skincare companies – which previously relied on BPOM registration alone. Korean exports to Indonesia surged 69.9% YoY (2024), reaching $140 million8, but success here now hinges on navigating halal compliance. Foreign entities must adapt to ingredient audits, production process checks, and collaboration with certifying bodies like LPPOM MUI5.
Why This Matters for Korean Brands
Korean beauty products enjoy global popularity for their innovation, but Indonesia’s halal-first market demands cultural adaptation. While K-beauty trends influence local product preferences (e.g., sun protection, anti-aging)3, brands must align formulations and supply chains with Indonesia’s religious norms. Failure to comply risks exclusion from a market where halal certification isn’t just a legal requirement – it’s a consumer expectation5.
Indonesia’s halal skincare landscape blends spiritual values with modern beauty trends, creating opportunities for brands that master certification and cultural nuance. Next, we’ll explore the legal framework driving these regulations.
Indonesia's Legal Framework for Halal Skincare
Indonesia’s halal skincare regulations are defined by Government Regulation No. 42/2024 on Halal Product Assurance1, which sets the framework for mandatory certifications across key industries, including cosmetics. This regulation positions halal compliance as a legal requirement, not just a market advantage, and establishes the Badan Penyelenggara Jaminan Produk Halal (BPJPH) as the central authority for enforcement1. Below is a detailed breakdown of this framework, including certification deadlines, regulatory roles, and compliance expectations.
Government Regulation No. 42/2024: Core Provisions for Cosmetics
Effective October 17, 2026, this regulation mandates halal certification for all cosmetics sold in Indonesia1. Unlike voluntary systems in other markets, compliance is non-negotiable for both domestic and imported products. Key provisions include:
| Category | Requirement | Source |
|---|---|---|
| Product Types | Cosmetics, medicinal products, chemicals, biotech products, and consumer goods | [1][4] |
| Certification Scope | Ingredients (e.g., alcohol, pork derivatives), production processes, and raw material sourcing | [1][3] |
| Penalties | Non-compliant products face market exclusion and potential legal action | Implied in [1][4] |
The regulation reflects Indonesia’s commitment to integrating Islamic values into consumer protection. While the deadline is nearly two years away, BPJPH encourages early adoption to build consumer trust1. Many brands already comply voluntarily, leveraging halal certification as a competitive edge1.
BPJPH: The Guardian of Halal Assurance
BPJPH operates as Indonesia’s halal certification authority, responsible for:
- Policy Formulation: Defining norms, standards, and criteria for halal products3.
- Certification Process: Issuing halal certificates and labels after audits of ingredients, production facilities, and supply chains3.
- Public Education: Conducting workshops and seminars with industry stakeholders to streamline compliance1.
For cosmetics, BPJPH’s oversight includes verifying:
- Raw Material Compliance: Ensuring ingredients align with Islamic law.
- Production Audits: Inspecting facilities for cross-contamination risks.
- Supply Chain Transparency: Tracing ingredient origins to exclude prohibited substances1.
BPOM’s Role in Product Safety and Compliance
While BPJPH handles halal certification, Indonesia’s Food and Drug Monitoring Agency (BPOM) ensures product safety through cosmetic notifications. Key responsibilities include:
BPOM’s Regulatory Focus
| Area | Requirements |
|---|---|
| Product Safety | Compliance with Good Manufacturing Practices (GMP) and allergy labeling standards[4] |
| Documentation | Submission of GMP certificates, trademark licenses, and production facility details[4] |
| Notification Validity | Tied to production contracts (e.g., 3-year validity for licensed products)[4] |
BPOM recently proposed stricter documentation rules for imported cosmetics, emphasizing GMP compliance and warehouse address transparency4. These updates aim to align Indonesia’s regulations with global standards while addressing local market demands.
Why These Laws Matter to Brands
The 2026 deadline forces brands to rethink their supply chains and production processes. For example:
- Domestic Manufacturers must undergo full halal audits, including Muslim supervisor approvals3.
- Importers face dual compliance – securing BPOM notifications and halal certification4.
- Global Brands like Korean skincare companies must adapt formulations to exclude alcohol-based preservatives or animal-derived ingredients8.
BPJPH and BPOM collaborate to ensure seamless compliance, but brands must proactively engage with both agencies. Failure to meet these standards risks immediate market exclusion – a high-stakes scenario in Indonesia’s competitive beauty industry.
Next, we’ll explore BPJPH’s certification process and how brands can navigate these requirements.
BPJPH Halal Certification Requirements for Skincare
Indonesia’s mandatory halal certification for skincare products, enforced by the Badan Penyelenggara Jaminan Produk Halal (BPJPH), requires brands to navigate rigorous compliance processes. With the October 17, 2026, deadline approaching14, understanding these requirements is critical for suppliers, manufacturers, and importers. Below is a detailed breakdown of the certification steps, validity periods, and distinctions from BPOM registration.
Step-by-Step Certification Process
The BPJPH mandates a multi-stage halal certification process for skincare products, including raw material checks, production audits, and competent Muslim supervisor requirements. Here’s how it unfolds:
-
Preparation Phase (30 days)
- Internal readiness: Develop a Halal Assurance System (HAS) outlining ingredient sourcing, production workflows, and sanitation protocols.
- Supervisor appointment: Assign a Muslim supervisor to oversee halal compliance in production and documentation6.
- Supply chain audits: Trace raw materials to ensure exclusion of prohibited substances (e.g., alcohol, pork derivatives).
-
Application Submission (7 days)
-
Document Review (14 days)
-
LPH Assignment & Pre-Audit (21 days)
- BPJPH assigns an accredited Halal Inspection Agency (LPH).
- LPH reviews additional documents, including SOPs, process flowcharts, and sanitation records.
-
On-Site Inspections (5 days)
- LPH conducts audits to verify:
- Raw material storage segregation (e.g., no cross-contamination with non-halal substances).
- Production line integrity.
- Muslim supervisor involvement in critical processes1.
- LPH conducts audits to verify:
| Stage | Description | Duration |
|---|---|---|
| Preparation | Internal readiness & documentation | 30 days |
| Application | SIHALAL portal submission | 7 days |
| Document Review | BPJPH administrative checks | 14 days |
| LPH Assignment | LPH audits & pre-audit prep | 21 days |
| On-Site Inspection | Facility audit & process verification | 5 days |
- Fatwa & Certification (19 days)
Validity Periods & Renewals
Halal certificates remain valid for 4 years, but brands must maintain compliance through:
- Annual inspections (if production processes change).
- Re-certification processes upon expiration6.
Failure to renew results in immediate market exclusion.
Halal Certification vs. BPOM Registration
While both certifications are mandatory, their focuses differ:
| Aspect | BPJPH Halal Certification | BPOM Registration |
|---|---|---|
| Purpose | Religious/ethical compliance (ingredients, processes) | Product safety & efficacy (GMP, labeling) |
| Scope | Raw materials, production, Muslim supervisors | GMP certification, ingredient safety, labeling |
| Documentation | HAS, LPH audits, MUI fatwa | GMP certificates, production contracts, BPOM notifications |
| Penalties | Market exclusion if non-compliant | Product bans, legal action for safety violations |
Key Takeaway: BPJPH ensures spiritual compliance, while BPOM guarantees product safety. Importers must secure both certifications to sell in Indonesia[4][previous content].
Critical Requirements for Brands
-
Raw Material Sourcing
- Exclude alcohol derivatives (e.g., denatured alcohol) and animal-byproducts.
- Secure halal-certified suppliers for critical ingredients6.
-
Muslim Supervisor Mandate
- Assign a Muslim staff member to oversee:
- Ingredient storage.
- Production line segregation.
- Documentation accuracy8.
- Assign a Muslim staff member to oversee:
-
Facility Compliance
- Implement halal-dedicated production lines to prevent cross-contamination.
- Train staff on halal production standards5.
For brands navigating these requirements, collaboration with LPHs and early adoption are essential. With 81,343 domestic and 7,558 foreign skincare products already certified3, competition is intense. Next, we’ll explore strategies tailored to Korean skincare brands entering this market.
Special Considerations for Korean Skincare Brands
Korean beauty brands face unique challenges in Indonesia’s halal-centric skincare market. While K-beauty’s global reputation for innovation appeals to Indonesian consumers, compliance with halal standards requires strategic adaptation. Here’s a breakdown of the hurdles and solutions tailored to Korean brands:
1. Ingredient Compliance: Navigating Forbidden Substances
Korean formulations often include alcohol-based preservatives or pork-derived ingredients like collagen, which conflict with halal requirements1. For example, alcohol is prohibited not only in terms of consumption but also in trace amounts during production. Brands must:
- Replace alcohol-based ingredients: Swap ethanol in toners or moisturizers with plant-derived alternatives (e.g., witch hazel extracts).
- Screen for non-halal animal byproducts: Avoid ingredients like gelatin, keratin, or snail mucin sourced from non-certified suppliers6.
- Leverage BPOM’s ingredient database: Cross-reference Indonesian safety standards with halal rules to identify compliant substitutes5.
Case Study: Paragon Skincare, Indonesia’s largest cosmetics brand, educated global suppliers on halal certification for raw materials like glycerin and vitamin D. This approach could serve as a template for Korean brands1.
2. Production Process Audits: Meeting BPJPH Standards
Indonesia’s Halal Product Assurance Agency (BPJPH) mandates rigorous facility inspections to ensure no cross-contamination with non-halal substances3. Key requirements include:
| Audit Component | Action for Korean Brands |
|---|---|
| Muslim supervisors | Assign Muslim staff (ucapan) to oversee production lines, ingredient storage, and documentation[7]. |
| Dedicated production lines | Invest in segregated equipment to prevent accidental contact with non-halal products[1]. |
| Sanitation protocols | Implement SOPs (Standard Operating Procedures) for facility cleaning, validated by BPJPH-certified auditors[6]. |
Practical Tip: Partner with Indonesian halal-certified contract manufacturers to streamline compliance. Many already have BPJPH-approved facilities and connections with LPPOM MUI (Indonesia’s halal certification body)3.
3. Supply Chain Transparency: Tracing Raw Materials
Korean brands must prove the origin and purity of ingredients. Challenges include:
- Global supplier certification gaps: Ingredients like hyaluronic acid or squalane may lack halal documentation from international suppliers.
- Counterfeit risks: Cheap alternatives (e.g., non-certified “halal” glycerin) often bypass safety and halal checks6.
Solutions:
- Audit upstream suppliers: Demand halal certificates for every ingredient, even those imported by third parties (e.g., French or US-based raw material providers)1.
- Adopt blockchain tracking: Pilot systems to verify ingredient provenance for high-risk components like biotin or collagen6.
4. Cultural Adaptation: Balancing Global Appeal with Local Values
Indonesian consumers value halal certification as a marker of safety and ethical production, not just religious compliance1. For Korean brands, this means:
- Expanding shade ranges: Like Makeover’s cushion blusher (24 shades), inclusive formulations resonate with diverse Indonesian demographics1.
- Cultural storytelling: Highlight adherence to Muslim-friendly practices (e.g., ramadan-friendly packaging) without alienating non-Muslim buyers7.
- Localized marketing: Use Bahasa Indonesia labels and digital campaigns emphasizing “halal, safe, and inclusive” values5.
5. BPOM + Halal Dual Compliance: Avoiding Pitfalls
Korean brands must navigate both BPOM’s safety regulations and BPJPH’s halal standards. Key overlaps include:
- Labeling: Include BPOM’s mandatory ingredient list (INCI names) and the halal logo post-certification5.
- Documentation: Submit GMP certificates, production contracts, and halal certification to BPOM simultaneously4.
Pro Tip: Appoint a local Product License Holder (PLH) to handle BPOM notifications and act as a liaison with BPJPH5.
Transition to Next Section
While halal certification addresses spiritual and ethical requirements, BPOM compliance ensures scientific safety. In the next section, we’ll explore BPOM’s specific labeling rules, advertising restrictions, and safety benchmarks—crucial for brands aiming to dominate Indonesia’s $1.86 billion skincare market3.
BPOM Compliance Beyond Halal Certification
While halal certification addresses religious and ethical compliance, BPOM (Indonesia’s Food and Drug Monitoring Agency) ensures scientific safety standards and market transparency for skincare products. This dual compliance framework creates a rigorous regulatory landscape for global brands. Below is a breakdown of key BPOM requirements beyond halal certification:
1. Labeling Requirements
BPOM mandates strict labeling rules to protect consumers from misleading information and unsafe products. Key requirements include:
- Mandatory elements: Full ingredient lists (using INCI names), product names, usage instructions, and BPOM registration numbers2.
- Language: All text must be in Bahasa Indonesia, including ingredient declarations and warnings (e.g., “Avoid contact with eyes”)2.
- Exclusions: No claims about medical efficacy (e.g., “cures acne”) unless approved as medicinal products6.
Example: A moisturizer must list cetyl alcohol as an ingredient but cannot claim it “treats eczema” without medical certification6.
2. Advertising Regulations
BPOM prohibits overclaims or misleading statements in marketing materials. Common violations include:
- Exaggerated benefits: Promising “wrinkle-free skin in 7 days” without scientific validation5.
- Unverified certifications: Advertising “halal” before obtaining BPJPH approval1.
- Unsafe endorsements: Partnering with influencers who promote unregistered products5.
Consequences: Violators face administrative fines (up to IDR 2 billion) and criminal penalties (up to 5 years imprisonment)6.
3. Safety and Manufacturing Standards
BPOM enforces three pillars of safety compliance:
| Standard | Requirements | Enforcement |
|---|---|---|
| Good Manufacturing Practices (GMP) | Clean facilities, contamination controls, and quality monitoring[2][3]. | Facilities inspected by BPOM’s regional units (UPT BPOM)[3][8]. |
| Ingredient Safety | Avoiding alcohol derivatives (e.g., denatured alcohol) and restricted additives like hydroquinone[6][8]. | Mandatory ingredient declarations and toxicity testing[2][4]. |
| Challenge Tests | Validation of preservation methods (e.g., hurdle technology) for low-acid hermetic packs via certified labs[4]. | Compliance required for high-risk food/cosmetics packaging[4]. |
Update: Since May 2025, BPOM requires warehouse address documentation for imported cosmetics to track product distribution3.
4. Post-Market Surveillance
Even after approval, BPOM conducts ongoing monitoring to ensure compliance:
- Market sampling: Random testing of products for banned ingredients1.
- Facility audits: Inspections of production lines and storage conditions2.
- Validity alignment: Notification periods now match production contract durations (e.g., 3-year validity for licensed cosmetics)3.
Example: A Korean skincare brand distributing through a Jakarta-based PLH must submit updated facility reports if switching manufacturers3.
Transition to Compliance Strategies
BPOM’s layered requirements—labeling, advertising, and safety checks—create a compliance ecosystem that demands proactive planning. For Korean brands, this means balancing innovation with regulatory rigor. Next, we’ll explore actionable steps to align formulations, production processes, and marketing strategies with Indonesia’s unique standards.
Preparing for 2026: Actionable Steps for Compliance
With Indonesia’s October 17, 2026 halal certification deadline looming, global skincare brands must act decisively to avoid market exclusion. Here’s how to transform regulatory requirements into strategic advantages:
1. Ingredient Sourcing Audits: Rooting Out Non-Compliant Substances
Start with supply chain transparency – trace every ingredient to its origin, excluding alcohol derivatives (even in preservatives) and animal byproducts. For example, Korean brands should verify that glycerin or squalane suppliers hold halal certificates from accredited bodies like LPPOM MUI or ISA1.
- Replace risky ingredients: Swap ethanol-based toners with witch hazel extracts or opt for non-alcoholic preservatives like phenoxyethanol7.
- Audit upstream suppliers: Demand halal documentation from third-party ingredient providers (e.g., EU-based raw material sellers)6.
- Leverage blockchain: Pilot systems to track high-risk components like collagen or hyaluronic acid, ensuring compliance at every stage7.
Pro Tip: Partner with Indonesian contract manufacturers like PT Catur Global Sukses – they’ve already navigated BPJPH’s strict production audits and can guide formulation adjustments5.
2. Production Facility Alignment: Meeting BPJPH Standards
Build halal-dedicated infrastructure to avoid cross-contamination risks. For imported products, this often means working with local facilities already certified by BPJPH:
| Action | Impact |
|---|---|
| Segregate production lines | Prevents accidental contact with non-halal products (e.g., wine-based ferments)[5]. |
| Assign Muslim supervisors | Oversees ingredient storage, production line sanitation, and documentation accuracy[6]. |
| Implement SOPs | Standardize cleaning protocols and supply chain checks, validated by LPH auditors[6]. |
Case Study: Brands like Wardah have dominated Indonesia’s market by prioritizing halal-friendly facilities – a model global brands can emulate1.
3. Collaboration with Local Halal Certification Bodies
Leverage Indonesia’s accredited LPHs (like LPPOM MUI) to streamline audits and avoid costly rework. Key strategies include:
- Pre-audit partnerships: Work with LPHs to identify gaps in your Halal Assurance System (HAS) before formal inspections6.
- On-site audits: While foreign brands can bring Indonesian auditors to their facilities, this method incurs steep travel costs – better to collaborate locally2.
- Socialization programs: Join BPJPH’s workshops (e.g., those hosted by Perkosmi) to learn about upcoming regulatory shifts6.
Quote: “Exporters must comply with the new requirements if they wish to continue exporting to Indonesia.” – Tanja Harjuniemi, Seven Stones Finland2.
4. Early Adoption & Documentation Mastery
While mandatory certification begins in 2026, brands gain market credibility by complying early. Key steps:
- Submit voluntary certifications now: Many Indonesian consumers already prioritize halal labels – early adopters capture brand loyalty6.
- Streamline documentation:
- HAS draft: Outline ingredient sourcing, production workflows, and staff training.
- GMP alignment: Submit GMP certificates alongside halal compliance documents4.
- Pre-empt future phases: Prepare for expanded regulations in 2029 (OTC medicines) and 2034 (prescription drugs) by integrating modular compliance systems2.
5. Navigating Dual Compliance (BPOM + Halal)
Indonesia’s BPOM and BPJPH have distinct but overlapping mandates. To avoid pitfalls:
| Compliance Area | BPOM | BPJPH |
|---|---|---|
| Focus | Product safety (GMP, labeling) | Ethical compliance (ingredients, production) |
| Key Docs | Production contracts, GMP certificates | HAS, Muslim supervisor appointments |
| Penalties | Product bans, fines | Market exclusion |
Pro Tip: Appoint a local PLH (Product License Holder) to coordinate BPOM notifications and BPJPH audits – they handle language barriers and jurisdiction nuances8.
Transition to Future-Proofing
By 2026, compliance will be table stakes. To thrive beyond this deadline, focus on long-term partnerships with LPPOM MUI -certified suppliers and innovative ingredients that align with Islamic values. This proactive approach not only secures market access but positions your brand as a leader in ethical beauty – values increasingly driving consumer decisions in Southeast Asia.
Future-Proofing Your Skincare Business in Indonesia
Indonesia’s halal skincare market is projected to grow 11% annually through 20306, but surviving this growth requires more than basic compliance. Here’s how to turn regulatory adherence into sustained success:
1. Embed Halal Principles in R&D
Reformulate products using halal-first ingredients like plant-derived hyaluronic acid and microbial collagen5. Example: Replace alcohol-based preservatives with fermented rice water extracts, aligning with both Islamic law and clean beauty trends7.
2. Build Agile Supply Chains
- Partner exclusively with BPJPH-certified suppliers for critical raw materials
- Develop backup suppliers for high-risk ingredients (e.g., squalane) to prevent shortages5
- Implement blockchain tracking for real-time halal provenance checks6
| Strategy | Short-Term | Long-Term |
|---|---|---|
| Ingredient Sourcing | Audit existing suppliers | Cultivate local halal-certified farms |
| Production | Segregate lines | Build dedicated halal facilities |
| Compliance | Annual audits | AI-driven halal monitoring systems |
3. Leverage Certification as Brand Equity
Indonesian consumers pay 23% premiums for halal-certified skincare3. Amplify this through:
- Transparency campaigns: Showcase halal audits on social media
- Cultural storytelling: Link formulations to Islamic heritage (e.g., dates in cleansers)
- Cross-industry partnerships: Co-brand with halal tourism or modest fashion influencers7
4. Anticipate Regulatory Evolution
With BPJPH planning stricter traceability rules by 20271, forward-thinking brands:
- Join BPJPH’s industry working groups for early policy insights
- Invest in halal R&D labs to pre-test emerging ingredients (e.g., lab-grown bioactives)
- Train staff through MUI’s Halal Expert Certification Program6
5. Globalize Your Halal Compliance
Indonesia’s regulations influence Southeast Asia’s $4.8B halal cosmetics market6. Brands mastering these standards can replicate strategies in Malaysia (JAKIM certification) and UAE (ESMA), creating regional synergies.
The brands thriving in 2026 won’t just comply – they’ll make halal integrity their competitive core. By aligning innovation with Islamic values, you position your skincare line not just as permitted, but as preferred in Southeast Asia’s beauty revolution.
Unlocking New Markets with PONGO: Your Gateway to Success in Southeast Asia
PONGO offers an unparalleled suite of services that aligns perfectly with the needs of skincare brands navigating Indonesia's halal certification landscape. With our emphasis on localized and compliant marketing strategies, we ensure that international brands can seamlessly integrate into the Indonesian market, respecting local regulations and consumer expectations.
Why Partner with PONGO?
At PONGO, we pride ourselves on our industry leadership and strategic prowess, particularly in the thriving markets of Southeast Asia. Our track record speaks volumes, with proven success stories involving top-tier brands that transformed their market presence through our innovative strategies and expert guidance.
Solving Challenges with PONGO's Expertise
Navigating Indonesia's complex regulatory environment can be daunting. PONGO acts as your beacon of clarity, offering data-driven insights and tailor-made solutions that align with the stringent requirements of BPJPH and BPOM. Our comprehensive approach not only enhances compliance but accelerates market entry and growth.
Reach Out Today!
Embark on your journey towards compliance and market leadership with PONGO. Contact us now via our Contact Us page to discover how we can propel your brand to new heights in the dynamic Indonesian skincare market.
co-Founder of Pongo