New Regulations Set to Transform Beauty Market by 2026

Indonesia’s cosmetics industry is approaching a significant transformation as new regulations will require all cosmetic products to obtain halal certification starting in 2026. This mandatory requirement represents more than just regulatory compliance—it opens access to Indonesia’s massive Muslim consumer market and positions companies for global halal market opportunities.

Massive Market Potential Drives Industry Change

With over 242 million people, of whom more than 85% are Muslim, Indonesia presents an enormous market for halal-certified cosmetics. The cosmetics industry’s annual business turnover reaches billions of US dollars, creating strategic opportunities that industry players cannot afford to overlook.

Muhammad Aqil Irham, Principal Secretary of the Halal Product Assurance Agency (BPJPH), emphasized the market implications during a seminar titled “2026 Mandatory Halal: Practical Strategies for the Cosmetics Industry.” The event, organized by LPH LPPOM during the Indo Beauty Expo in collaboration with PT Kristamedia Pratama, took place at Jakarta International Expo on August 8, 2025.

Regulatory Framework and Timeline

The government has established the regulatory foundation through Government Regulation No. 39 of 2021, covering cosmetic products used, utilized, and sold to the public. The mandatory halal certification phase will officially begin on October 17, 2026, giving companies just over a year to prepare for compliance.

Irham highlighted the growing consumer awareness surrounding halal products, noting that consumers are now highly concerned about halal certification. He warned that companies refusing to comply face both regulatory sanctions and market consequences, as increasingly conscious consumers will abandon non-compliant brands.

Technical Requirements and Certification Process

Mulyorini Rahayuningsih Hilwan from the Halal Audit Quality Board (LPPOM) outlined two critical aspects for ensuring halal status in cosmetics. First, companies must conduct detailed audits of raw materials to ensure products contain no impure or non-halal ingredients. Second, laboratory testing must verify water permeability, which relates to product purity during use.

The certification requirements extend beyond obviously consumed products. Items like lipstick, lip balm, and toothpaste require halal certification due to potential accidental ingestion. Even external-use products such as body lotion, soap, and nail polish must comply with the Halal Product Assurance System (SJPH).

Strategic Implementation Steps

Industry players can begin preparing immediately by following five practical strategic steps:

Companies should first determine their business scope and production processes, then thoroughly understand SJPH criteria. The next steps involve appointing and training halal supervisors, preparing raw material documentation and SJPH documents, and implementing SJPH throughout the entire production chain.

Long-term Business Benefits

Halal certification offers substantial advantages for cosmetics companies. The certificate remains valid for life unless ingredients or processes change, carries international recognition, and significantly expands market access. As consumer awareness continues growing, halal certification has evolved from an optional consideration to an essential business necessity and long-term investment for cosmetics industry sustainability in Indonesia.

This regulatory shift positions Indonesia as a leader in the global halal cosmetics market while ensuring local consumers have access to products that meet their religious and cultural requirements.

Original Article:

Yana. (2025, August 31). Together with LPH LPPOM, seizing the halal cosmetics market opportunity in 2026. LPPOM MUI. Retrieved from https://halalmui.org/en/together-with-lph-lppom-seizing-the-halal-cosmetics-market-opportunity-in-2026/