Cosmetics Industry Proposes One-Year Delay for Mandatory Halal Certification
The Indonesian Cosmetics Companies and Associations (PPAK) is proposing a one-year delay for the mandatory halal certification scheduled to start on October 18, 2026. PPAK Chairman Solihin Sofian said the industry supports the policy but needs a transition period to prepare the supply chain and certification process, especially since 85 percent of raw materials are still imported.
Businesses face challenges like the weakening rupiah, geopolitical conflicts, and rising logistics costs. PPAK recorded industry growth of 6.7 percent with a market value of Rp170–200 trillion, but worries growth could slow if the requirement is imposed without adequate readiness. SMEs, which make up 80 percent of industry players, are most vulnerable due to limited administration and financing.
PPAK is asking the government to provide technical assistance, simplify the certification process, and offer financing support for SMEs. The association emphasized it still supports halal certification and sees Indonesia potentially becoming a global halal cosmetics industry hub with thorough preparation.
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