Jakarta. Indonesia has postponed the deadline for mandatory halal certification for certain micro and small business products until 2028, giving businesses more time to comply with the rules amid concerns that certification costs could threaten their operations.

Micro, Small, and Medium Enterprises Minister Maman Abdurrahman said Thursday that President Prabowo Subianto had ordered the postponement after the government found that many small businesses were not yet prepared to meet the requirements.

Maman stressed that mandatory halal certification was not a new policy introduced by the Prabowo administration but a requirement under the Halal Product Assurance Law enacted in 2014. “I want to clarify that mandatory halal certification is a legal requirement, and the law was enacted before President Prabowo’s administration,” Maman said at his office in Jakarta.

He said the government had received complaints from businesses struggling to comply, particularly over their readiness and the costs involved in obtaining certification.

“To ensure the sustainability and continued operation of MSMEs in our country, the president instructed us to postpone the deadline that passed on Oct. 17, moving it to 2028,” Maman said.

The government’s decision comes amid broader concerns over the potential impact of halal certification requirements on Indonesia’s millions of small businesses. Economists have called for a review of the enforcement approach, arguing that compliance costs and administrative procedures could disproportionately affect businesses with limited capital and resources.

Critics have argued that certification requirements should take product risks into account, and requiring certification across product categories could impose unnecessary burdens on some small businesses.

Maman acknowledged that certification coverage remained below the government’s desired level. According to figures he presented, a cumulative 4,432,039 halal certificates had been issued to business entities, while approximately 16 million products had been certified.

Despite this progress, he said the figures were insufficient to cover all businesses and products subject to the requirements.

The Ministry is discussing possible solutions with the Halal Product Assurance Agency (BPJPH), the Coordinating Ministry for Economic Affairs, and business associations, including groups representing micro and small enterprises and the Indonesian Employers Association (Apindo).

“We agree that we need to implement this law, but we must not allow it to become a burden on our MSMEs,” Maman said.

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