JAKARTA – As Indonesia approaches the 2026 implementation of mandatory halal certification for cosmetic products, industry stakeholders are actively developing comprehensive strategies to ensure compliance with the upcoming regulatory requirements. The impending regulation represents a significant shift in Indonesia’s beauty and personal care sector, requiring extensive preparation across the entire supply chain.

Supply Chain Education and Preparation

PT Graha Esa, under the leadership of President Director Dendy Tedjamihardja, has begun implementing proactive measures to address the certification requirements. The company has initiated comprehensive educational programs targeting all raw material suppliers, ensuring they understand and prepare for the necessary halal certification processes.

Tedjamihardja revealed that certain segments of the cosmetics industry have already adopted stringent procurement policies, actively refusing raw materials that lack official halal certificates from Indonesia’s Halal Product Assurance Organizing Agency (BPJPH). This early adoption demonstrates the industry’s commitment to meeting regulatory standards ahead of the mandatory deadline.

Market Response and Consumer Expectations

The transition toward mandatory halal certification reflects evolving consumer preferences and regulatory compliance requirements in Indonesia’s predominantly Muslim market. Industry players recognize that early compliance efforts not only ensure regulatory adherence but also align with consumer expectations for religiously compliant beauty products.

The certification requirement extends beyond finished products to encompass the entire production chain, including raw materials, manufacturing processes, and quality control systems. This comprehensive approach ensures complete halal integrity throughout the cosmetic production lifecycle.

Strategic Opportunities for Industry Growth

According to Tedjamihardja, the mandatory certification requirement presents significant opportunities for distributors and manufacturers to strengthen their supply chain compliance frameworks. Companies that successfully navigate the certification process early may gain competitive advantages in both domestic and international markets.

The regulation is expected to create a more standardized and trustworthy cosmetics market, potentially reducing confusion among consumers and establishing clearer industry standards. This standardization could benefit both established companies and emerging brands seeking to build consumer trust.

Long-term Industry Transformation

Industry analysts view the mandatory halal certification as a strategic move that could enhance Indonesia’s position as a regional hub for halal cosmetics manufacturing. The country’s large Muslim population and growing beauty market make it an attractive destination for halal-certified cosmetic production and distribution.

The certification requirement may also stimulate innovation within the industry, encouraging companies to develop new formulations and production methods that meet halal standards while maintaining product quality and performance. This innovation could drive technological advancement and manufacturing excellence.

Implementation Challenges and Solutions

While the regulation presents opportunities, industry stakeholders acknowledge the challenges associated with comprehensive supply chain certification. Companies must invest in training programs, certification processes, and potentially new supplier relationships to ensure full compliance.

The transition period allows companies to gradually adapt their operations, supplier networks, and internal processes to meet the certification requirements. Early preparation efforts, such as those undertaken by PT Graha Esa, demonstrate proactive approaches to regulatory compliance.

Regional and Global Market Implications

Indonesia’s move toward mandatory halal certification for cosmetics aligns with broader trends in Islamic finance and halal commerce across Southeast Asia and the Middle East. The regulation positions Indonesian cosmetic manufacturers to better serve Muslim consumers both domestically and internationally.

The certification requirement could also attract international halal cosmetics brands to establish operations in Indonesia, viewing the country as a compliant manufacturing base for regional distribution. This potential influx of international investment could further strengthen Indonesia’s cosmetics manufacturing sector.

Future Industry Outlook

As the 2026 deadline approaches, industry observers expect continued preparation efforts and potential consolidation among suppliers and manufacturers. Companies that successfully implement halal certification systems may emerge as preferred partners for both domestic and international cosmetics brands.

The mandatory certification represents more than a regulatory compliance issue—it signals Indonesia’s strategic positioning in the global halal economy and its commitment to serving Muslim consumers’ needs through standardized, certified products.

The ongoing preparation efforts by industry leaders like PT Graha Esa demonstrate the sector’s readiness to embrace this transformation and leverage the opportunities it presents for sustainable growth and market expansion.

Original Article:

CNBC Indonesia. (2025, September 16). Video: Kosmetik RI Wajib Halal, Industri Siap? Retrieved from https://www.cnbcindonesia.com/lifestyle/20250916163601-35-667498/video-kosmetik-ri-wajib-halal-industri-siap