HALAL FOOD BUSINESS INVESTMENT IN INDONESIA · I declare : there is no god worthy of worship except Allah SWT and Muhammad is His Messenger . Zakat . Fasting in Ramadhan Month . Sholat

Presented by : Sumunar Jati Vice Director of LPPOM MUI

HALAL FOOD BUSINESS INVESTMENT

IN INDONESIA

The Assesment Institute for Foods, Drugs and Cosmetics Indonesia Council of Ulama

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Islamic Philosophy of Life

Life after Judgement Day

Heaven

Hell

….And I did not create the jinn and mankind except to worship Me (Adzdzariyat : 56)

I declare : there is no god worthy of worship except Allah SWT and Muhammad is His Messenger

Zakat Fasting in Ramadhan Month

Sholat Pilgrim / Hajj

Muslim World

( muslim 24,3 %)

Total World : 7 billion Total Muslim : 1,6 billion (23 %) in over 100 countries

( muslim 5,9 %)

( muslim 93,0 %)

( muslim 30,2 %)

( muslim 1,0 %)

( muslim 0,1%)

The largest : Indonesia

(210 million, 87%)

(Japanese muslim about 120,000)

O mankind! We created you from a single (pair) of a male and a female, and made you into nations and tribes, that you may know each other. Verily the most honored of you in the sight of God is the most righteous of you. And God has full knowledge and is well acquainted with all things. Qur’an (Al Hujurat : 13)

A One Column Page Layout

Spirit of Islam

World Cultural Diversity

Purpose made nation-states and tribes in order to help each other, mutual respect, and mutual compassion between them, like compassion towards himself

• In Islam, all things are considered HALAL unless its are specifically

prohibited (by Qur’an, Hadits, Ijma’ and Qiyas)

• Halal is a set of rules “HALALAN THOYYIBAN” ( Hiegiens, Healthy and

Wholesome )

• HALAL must be clean and pure and made in accordance with Islamic Law, which include prohibition of pork and its derivatives, blood and its derivatives, animals where the name of Allah has not been invoked during slaughter, animals which have not been slaughtered or dead before slaughtering, carnivorous animals and items containing alcohol/intoxicant

The Halal Concept and Elements

“O mankind, eat from whatever is on earth [that is] lawful and good and do not follow the footsteps of Satan. Indeed, he is to you a clear enemy” (QS. Al-Baqarah : 168)

1. Fit for human consumption 2. Safe for human consumption 3. Halal for muslim consumption

Halal as New Frontier of Global Market

• Food Paradigm

Customer Satisfaction

Halal Value in Supply Chain

Animal Welfare & Fair Trade

Halal as New Frontier of Global Market

garbage

Challenges of Food Safety and Quality

Even though

• Delicious

• High Nutrition

If Not Safe

No Value

•Food Safety •Quality Standard •Healthy & Functional Food •HALAL •Back to Nature •Food Additives concern •Label •Convenience

Local & Global Trade consideration

Halal is a concept that can be applied to more than just the food sector. In addition to the manufacture, processing and distribution of products, additives and food ingredients, halal certification applies to medicines (vaccines, neutraceuticals, etc.), cosmetics and personal care products, clothes and services such as banking, finance, hotels, restaurants and even logistics.


GLOBAL FOOD MARKET World People Population year 2012 : 7 Billion with minimum food consumption US$2/day, so totally food consumption about US$5Trillion/year. It is a HUGE MARKET. Nearly 600 Million consumer market in ASEAN Region : Indonesia 245M, Phillipines 96M, Vietnam 89M, Thailand 70M, Malaysia 29M, Singapore 5,2M

Over 150M middle class consumers Heavy food importer : wheat, meat, sub tropic fish, milk, fishmeal, subtropic fruits, cotton, dairy. Global exporter (palm oil, coffee; cacao; shrimp; fish, patin/dori,

rubber, pineapple, banana, coal)

AFTA will be effective on 2015



Halal in The World

Halal is basic requirement for Moslem consumer Total population of Moslem in the world in 2014 is 2.08 Billion Muslim Population is increasing at 1.84% in 2014 HALAL become a global issue. Increasing demand for halal products become opportunities for Halal Food Producers. The largest of these markets are located in South East Asia and West Asia There is also strong demand for halal products in a number of non-Muslim countries. These markets include India (140 million Muslims) China (40 million Muslims), United States (8 million Muslims), Philippines (6 million Muslims), France (6 million Muslims), Thailand (3.2 million Muslims), Germany (3 million Muslims) and the United Kingdom (1.5 million Muslims).


1,354 M 1,214 M 198 M

143 M 127 M

245 M 96 M

89 M

70 M

49 M

29 M

14 M

6 M 5,2 M

0.4 M

ASEAN = 600 million

The Influence of Population toward Food Needs


INDONESIA Strategic geographic location Population 250 millions, 90 % are Moslem (2010) Economic growth 5-7%/year 54.5% middle class income in 2010 (World Bank report,

2011) Has the highest Gross Domestic Product (GDP) as the member of OIC group The highest expenses for Food sector with total 197 Billion US Dollar or 18% from Total of Global Expenses in Food Sector. Halal is very sensitive issue for Muslim consumer




McKinsey Global Institute predict Indonesia will be the 7th largest economy in the World by 2030

Source: McKinsey Global Institute, 2012

Indonesia’s Population in 2030 : >300 million, but it’ll still 165 million med-low


Sources: Bank Indonesia & BPS-Statistics Indonesia, 2012 (projection)

Number of population in middle class income

(per capita expenditure per day $2-20)

Note: Per capita expenditure per day is adjusted to the 2005 purchasing power parity terms. Source: SUSENAS and World Bank staff calculations.

Proportion of the population based on per capita expenditure per day

5.5% 18.0% = 40 million people =

Why Indonesia : Remarkable Indonesia Growing Middle Class : Higher Demands for Better Services & Products

more than the total population of Malaysia & Singapore combined.


Opportunities of Japan for Halal Market in Indonesia

List of Japan Company that has certified by MUI

CustomerName ProductGroup Ajinomoto Co., Inc Spices, Seasoning and Condiments Ajinomoto Co., Inc Sweeteners Ajinomoto Co., Inc Protein and Amino Acids AJINOMOTO CO.,INC. Enzyme AJINOMOTO CO.,INC. Additives Doutor Coffee Co.,Ltd Beverage and Beverage Ingredients Kohjin Life Sciences Co., Ltd. Additives Koyo Chemical Industry Co., Ltd. Additives Nippon Protein Co., Ltd. Protein and Amino Acids T. HASEGAWA CO., LTD. Flavor, Seasoning and Fragrance YAKULT MATERIAL CO.,LTD. Flavor, Seasoning and Fragrance Yakult Pharmaceutical Ind.Co.,Ltd. Flour, Starch and Derivative/Processed Products Yamasa Corporation Spices, Seasoning and Condiments

Opportunities of Japan for Halal Market in Indonesia

List of Japan Company that has Signed Up via Online (CEROL – SS23000)

NO CustomerName ProductGroup 1 Ajinomoto Co., Inc Sweeteners 2 Ajinomoto Co., Inc Protein and Amino Acids 3 Ajinomoto Co., Inc Spices, Seasoning and Condiments 4 K-Sense Inc Kitchen

5 Shiraishi Calcium Kaisha, Ltd Others

6 T. HASEGAWA CO., LTD. Flavor, Seasoning and Fragrance

7 Yakult Pharmaceutical Ind.Co.,Ltd.

Flour, Starch and Derivative/Processed Products


Indonesia’s Gross Domestic Product



According to Nielsen’s Consumer Confidence Index 2013, consumer confidence remained strong in Southeast Asia, with Indonesia, the Philippines, Thailand and Vietnam all ranked among the top 10 most optimistic countries globally. Top 10 Most Confident Nations :

1. Indonesia 2. India 3. Phillipines 4. China 5. United Arab Emirates 6. Brazil 7. Thailand 8. Hongkong 9. Denmark 10. Peru


The Importance of Halal Certification

in Indonesia 1. Indonesia is the largest Muslim community in the world +

90% muslim (+250 millions populations) 2. Indonesia become one of the highest halal trade and

investment destination. 3. Halal is the sensitive issue and part of Muslim Consumer

Rights : in Indonesia on 1988 and 2000 there was a sensitive issue about products that contained pork which made Muslim consumers refrain from consuming those products , resulting most companies had to stop their production.

4. The existing Halal certification process has been well implemented and many F&B producers in Indonesia has certified its products.



Who Play Role Halal Certification & Labeling in

Indonesia?

Halal Certification :

1. LPPOM MUI

2. MUI Fatwa Committee

3. Company/Producer (coordinated by Halal Management Team)

Halal Labeling :

4. BPOM RI

Halal Certification Process Business/Company

2

1 3 MUI (Ulama

Council) LPPOM MUI 4

5 5

1. Company apply Halal certification to LPPOM MUI 2. LPPOM MUI audit the Company 3. LPPOM MUI report to MUI to obtain Fatwa Halal 4. MUI release the Fatwa Halal 5. LPPOM MUI release the Halal Certificate

The company n e e d to get permission from BPOM to put Halal logo on the label

Memorandum of Understanding Between The National Agency of Drug and Food Control and The Indonesian Council of Ulama Number HK.08.1.53.05.13.2779 and MOU04/Dir/LPPOM MUI/V/13 Regarding Cooperation in Halal Labeling to Processed Food Package

HALAL LABELING Article 4

1) The FIRST PARTY shall, in accordance with the results of examination / audit as referred to in Article 3 paragraph (1) hereof, issue a letter of recommendation on the fulfillment of food security, quality and nutrient to serve as a subject of consideration by the SECOND PARTY in issuing Halal Certificate.

2) The SECOND PARTY may, in accordance with the results of examination / audit as referred to in Article 3 paragraph (2) hereof and in due observance of recommendation in paragraph (1) hereof, grant Halal Certificate.

3) Halal Certificate as referred to in paragraph (2) hereof shall serve as ground for the FIRST PARTY in granting approval on Halal labeling to processed food package.

4) Halal labeling as referred to in paragraph (3) here of may be done only for processed foods having Approval of Processed Food Registration. Form of Halal labeling shall be determined by the SECOND PARTY.

MUI’s Role in Halal Certification

M U I : Majelis Ulama Indonesia (The Indonesian Council of Ulama) Umbrella of Islamic organizations (63) in Indonesia. Organization of Muslim leader and

scientist of Muslim. MUI stipulates for accreditation of halal

certification body overseas.




Two Authority Bodies for

Halal Certification in MUI :

1. LPPOM MUI (The Assessment Institute for Food, Drug and Cosmetic, The Indonesian Council of Ulama) is an institution formed by MUI to run MUI function in protecting muslim consumers in consuming products of foods, drugs, and cosmetics.

LPPOM MUI assists the company for scientific perspective. 2. MUI Fatwa Committee is one of MUI committees whose task to produce an Islamic legal opinion about law status on certain case. Members of fatwa committee are representative of Islamic organizations in Indonesia.

MUI Fatwa Committee for the Islamic Law (Syariah) perspective.



I. reparation of Halal Certification by Company to fulfill HAS Criteria

II. Halal Certification Process by LPPOM MUI :

Registration Pre Audit Assessment On Site Audit Post Audit Evaluation Halal Certificate Issuance Development of New Product/production Facility Halal Certificate Renewal

Important Steps of Halal Certification


Registration

Registration Payment

Approval of Registration Payment

Certification Data Upload

Pre-Audit Monitoring Contract Making

Contract Payment

Pre Audit

Audit

HAS Assessment

Fatwa Commission (FC)

Halal Certificate Upload

Audit Monitoring

HAS Monitoring

FC Monitoring

Halal Certificate Download

Company

LPPOM MUI

Approval of Contract Payment

Sign Up - Login

Procedures of Online Halal Certification ( CEROL - SS23000 )

www. e-lppommui.org

Important Principles in Halal Certification of MUI : 1. Scientific Judgement (LPPOM

MUI) 2. Shariah Judgement (Fatwa

Commission MUI)

LPPOM MUI HALAL ASSURANCE SYSTEM CONCEPT

On Food, Drugs, and Cosmetic in Industry HAS 23000

As Halal Certification Standard

HAS 23000 : Requirements of Halal Certification HAS 23103 : Guidelines of Halal Assurance System Criteria of Slaughterhouses HAS 23201 : Requirements of Halal Food Material

HAS 23101 : Guidelines of Compliance the HAS Criteria In the Processing Industry

HAS 23301 : Guidelines of Manual Preparation of HAS Criteria in the Processing Industry HAS 23102 : Guidelines of Compliance The HAS Criteria in

Restaurant HAS 23104 : Guidelines of Compliance The HAS Criteria in Catering

Halal Certification Standard of LPPOM MUI

The Fundamental of Halal Standard of LPPOM MUI : 1. Islamic Law 2. Scientific Research 3. Culture



The LPPOM MUI HAS Criteria 1. Halal policy 2. Halal management Team 3. Training and Education 4. Material 5. Product 6. Production Facility 7. Written Procedures for Critical

Activities 8. Traceability 9. The Product Handling for Product

That Not Meet Criteria 10. Internal Audit 11. Management review



11 HAS CRITERIA

Halal Policy Top management must establish written halal policy which indicates the company’s commitment to produce halal products consistently

Halal Management Team Company must establish a Halal Management Team which has authority to develop, manage and evaluate halal assurance system

Training and Education Company must have written procedure to train all personnel involved in halal production



11 HAS CRITERIA Halal Material

Company must only use Halal material for producing Halal product

Haram (Non Halal) material including: Pork Blood Carrion Animals which are slaughtered not according to Islamic

way Alcoholic beverages Part of Human body

Products All products must comply with Halal product (name and/or intention)

Facilities Facilities must only used for Halal production and can not be used for both Halal and product containing pork and pork derivatives



Written Procedures on Critical

Activities

Traceability System

Procedures for Non Conform

Products Handling

Internal Audit

Management Review

11 HAS CRITERIA


Halal Certificate

Implementation status of HAS

AUDIT RESULTS LPPOM MUI

HAS Certificate

Three times implementation status “A”

Halal MUI Logo

xxxxxxxxxxxxxx (Halal MUI Certificate Number)

No Country Total Company

1 Indonesia 866

2 China 265

3 India 31

4 Malaysia 19

5 Republic of Korea 10

6 Singapore 10

7 Thailand 10

8 Jepang 9

9 Vietnam 8

10 Belarus 7

TOP 10 COUNTRY Number of Halal Certificate per Country

TOP 10 CATEGORY PRODUCT No Product of Group Total Product

1 Flavor, Seasoning and Fragrance 58320

2 Oil, Fat and Processed Products 17676

3 Restaurant 13058

4 Noodles, Pasta and Processed Products 10268

5 Snack 9581

6 Beverage and Beverage Ingredients 7369

7 Cosmetic 6514

8 Plant and Processed Plant Products 5045

9 Spices, Seasoning and Condiments 4611

10 Chocolates, Confectioneries and Supporting Ingredient 3061

LPPOM MUI FACILITIES

Halal Lab : LPPOM MUI has commitment to provide laboratorium in order to give an efficient and realiable services for the sake of ummah in consuming Halal product halal globally. Generally, the he Halal LabTM will foccusing on the PCR* technology which can detect DNA of something ehich prohibited until a very low unit (magnitut picogram), compare to the other technology. This lab also developing and offering other technology services to detect non halal material which can be found in daily life.

Analysis Scope: 1. Pig Skin examination using microscope 2. Halal Mascara Examination (Waterproof) 3. Halal Ink Examination (translucent water power ) 4. Ethanol content using Cromatography Gas 5. The examination of pig protein contamination in processed and raw Material using pork detection kit 6. Examination on Pig DNA


INFORMATION ACCESSIBILITY Real Time Halal info through : • Website • Social Media • Contact center • Mobile apps

Accessible Halal product data through : Online dan hardcopy (website, jurnal halal, halal directory, mobile APPS, apps)

Accessible anytime and anywhere : • Desktop • Mobile apps (BB & Android)


Gadget application program using android system to check authentication the halal status of a product easily. Launched on January 11, 2014.

Gadget application using blackberry OS10 to check the halal status of a product & restaurant as one of program to support Shariah Tourism. Launched on May 12, 2014

MUI HALAL PROGRAM


Halal Learning Online which held by LPPOM MUI. First launched on Halal Olimpiade 2014 which followed by 2954 participant and TOT for Halal Care Community

Cooperation with Telkomsel, Indonesian provider as identification of halal product system by sending text message to 985555 with format Halal (space) Product Name. Launched on 22 October 2014,

MUI HALAL PROGRAM


For more Information : [email protected]

[email protected]

Documents

HALAL FOOD BUSINESS INVESTMENT IN INDONESIA · I declare : there is no god worthy of worship except Allah SWT and Muhammad is His Messenger . Zakat . Fasting in Ramadhan Month . Sholat