Source: Antara News

JAKARTA – In a significant move to prepare local businesses for Indonesia’s upcoming halal certification requirement, the South Sumatra provincial government has successfully assisted approximately 300 micro, small, and medium enterprises (MSMEs) in obtaining halal certification as of July 2025.

The initiative, spearheaded by the South Sumatra Cooperatives and MSMEs Office, represents a crucial step in helping local businesses comply with the national mandate that requires all MSMEs across Indonesia to secure halal certification by 2026.

Tiered Support System for Different Business Types

According to Amiruddin, Head of the South Sumatra Cooperatives and MSMEs Office, the provincial government has implemented a flexible support system tailored to different types of businesses and their certification needs.

For businesses with simpler product lines, the office provides completely free self-declared halal certification. This streamlined process is designed for enterprises producing single-type food products that are easily recognizable and whose halal status can be readily verified.

However, for more complex operations such as catering services and restaurants that offer diverse food menus, businesses are required to cover the costs associated with obtaining regular halal certification. In these cases, the provincial office provides administrative support and guidance to help entrepreneurs meet the necessary requirements and navigate the certification process.

Building Consumer Trust Through Certification

The provincial official emphasized the critical importance of halal certification in enhancing consumer confidence in local products. “MSMEs must prioritize obtaining halal certification for their products,” Amiruddin stated during his announcement in Palembang. “This certification is essential for building customer trust in MSME products across our province, which encompasses 17 districts and cities.”

The certification drive is particularly significant for South Sumatra’s diverse business landscape, where food and beverage enterprises constitute a substantial portion of the local MSME sector.

Race Against Time for 2026 Compliance

With the national deadline approaching, provincial authorities are urging local businesses to expedite their certification applications. The 2026 mandate represents a comprehensive effort by the Indonesian government to standardize halal certification across all MSMEs nationwide, reflecting the country’s commitment to serving its predominantly Muslim population and expanding access to international halal markets.

The urgency of this initiative is underscored by the limited time remaining for businesses to prepare their documentation and complete the certification process. Provincial officials are encouraging entrepreneurs to begin compiling necessary application materials and supporting documents immediately to ensure smooth processing and approval.

Broader National Context

This provincial initiative aligns with Indonesia’s broader strategy to strengthen its position in the global halal economy. The country has been actively promoting halal tourism, expanding halal product exports, and establishing international agreements to facilitate halal trade partnerships.

Recent developments include Indonesia’s agreements with Australia and New Zealand on mutual halal certification recognition, highlighting the economic opportunities that proper certification can unlock for local businesses.

Economic Impact and Future Outlook

The halal certification drive is expected to have significant economic implications for South Sumatra’s MSME sector. By ensuring compliance with national standards, local businesses will be better positioned to access wider markets, including international opportunities in the rapidly growing global halal economy.

The initiative also supports the provincial government’s broader economic development goals, as certified halal products can command premium prices and enjoy greater consumer trust, potentially leading to increased revenue and business growth for participating MSMEs.

As the 2026 deadline approaches, South Sumatra’s proactive approach to supporting its MSMEs in obtaining halal certification serves as a model for other provinces facing similar challenges in preparing their local businesses for the national mandate.

The success of this program will likely influence the economic competitiveness of South Sumatra’s MSME sector and contribute to the province’s overall economic development in the coming years.

Original article:

halaltimes.com. (n.d.). Hundreds of South Sumatra MSMEs get halal certification. Retrieved July 10, 2025, from https://en.antaranews.com/news/364489/hundreds-of-south-sumatra-msmes-get-halal-certification