Overview of Halal Certification

HALAL CERTIFICATION AND HALAL ASSURANCE SYSTEM

LPPOM MUILPPOM MUI

• Lembaga Pengkajian Pangan Obat-obatan dan Kosmetika Lembaga Pengkajian Pangan Obat-obatan dan Kosmetika - Majelis Ulama Indonesia (LPPOM – MUI), is an - Majelis Ulama Indonesia (LPPOM – MUI), is an institution formed by MUI to run MUI function in institution formed by MUI to run MUI function in protecting muslim consumers in consuming products of protecting muslim consumers in consuming products of foods, drugs, and cosmeticsfoods, drugs, and cosmetics

• Establish on January 6Establish on January 6thth, 1989 in Jakarta, 1989 in Jakarta

• MissionMission To establish and develop halal standard and inspection To establish and develop halal standard and inspection

systemsystem To halal certify foods, drugs and cosmetics consumed by To halal certify foods, drugs and cosmetics consumed by

the peoplethe people To educate people and be aware to only consume halal To educate people and be aware to only consume halal

products limitedlyproducts limitedly To provide complete and comprehensive information To provide complete and comprehensive information

about halalness of products from various aspects about halalness of products from various aspects integratedlyintegratedly

Auditor of LPPOM MUIAuditor of LPPOM MUIAuditor is a person assigned by LPPOM – MUI through a Auditor is a person assigned by LPPOM – MUI through a selection process including his/her competency, quality selection process including his/her competency, quality and integrity to conduct halal audit. Auditor is a and integrity to conduct halal audit. Auditor is a representative of ulama and a witness to find facts on representative of ulama and a witness to find facts on halal production of a company.halal production of a company.

MUI Fatwa CommitteeMUI Fatwa CommitteeMUI Fatwa Committee is one of MUI committees whose MUI Fatwa Committee is one of MUI committees whose task to produce an Islamic legal opinion about law task to produce an Islamic legal opinion about law status on certain case. Members of fatwa committee are status on certain case. Members of fatwa committee are representative of Islamic organizations in Indonesiarepresentative of Islamic organizations in Indonesia

FatwaFatwaFatwa is Islamic legal opinion about law status of a Fatwa is Islamic legal opinion about law status of a certain case. In halal certification process, fatwa output certain case. In halal certification process, fatwa output is the halal or haram status of product(s) based on is the halal or haram status of product(s) based on auditing process performed by LPPOM – MUI.auditing process performed by LPPOM – MUI.

EducationFatwa Committee :

- Syariah - Da’wah

- Ulumul Qur’an- Ulumul Hadits

• Auditors : - Chemistry - Food Science - Biochemistry - Agro industry - Biology - Physics - Veterinary

Halal CertificateHalal Certificate (HC) is a written fatwa issued by MUI to state the halalness of a product based on auditing process performed by LPPOM – MUI.

Internal Halal AuditorInternal Halal Auditor is staff(s) officially appointed by Company Management to coordinate implementation of HAS.

HAS AuditHAS Audit is audit on Halal Assurance System implementation in the halal certified company.

1st HAS Document

Registration

Product Certification Document

Product Audit

Audit Evaluatio

n

Audit Memorand

um

No

Yes

2nd HAS Document

Halal Certificat

e

FatwaNo

Yes

Procedure Halal Certification

MUI HALAL CERTIFICATE

HALAL ASSURANCE SYSTEM

Halal Assurance System is a management system to maintain the halal status of products that have obtained halal certificate

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• For a new company which has not obtained MUI Halal Certificate, HAS For a new company which has not obtained MUI Halal Certificate, HAS documents needed are : documents needed are : 1.1. 1st HAS Document contains at least an official statement to submit 1st HAS Document contains at least an official statement to submit

Manual of HAS within 6 months after halal certificate is issued.Manual of HAS within 6 months after halal certificate is issued.2.2. 2nd HAS Document contains at least Halal Policy, halal management 2nd HAS Document contains at least Halal Policy, halal management

organization, and scope of HAS implementation. organization, and scope of HAS implementation.

• For company which has already had halal certificate but its HAS For company which has already had halal certificate but its HAS implementation has not been audited, then HAS documents needed are :implementation has not been audited, then HAS documents needed are :1.1. 1st HAS Document contains at least Halal Policy, halal management 1st HAS Document contains at least Halal Policy, halal management

organization, and scope of HAS implementation.organization, and scope of HAS implementation.2.2. 2nd HAS Document contains standard Manual of HAS 2nd HAS Document contains standard Manual of HAS

• For company whose HAS has been audited and is going to renew its halal For company whose HAS has been audited and is going to renew its halal certificate then HAS documents needed are : certificate then HAS documents needed are : 1.1. 1st HAS Document contains HAS implementation report on recent 1st HAS Document contains HAS implementation report on recent

condition or revised HAS Manual or statement letter mentioning the condition or revised HAS Manual or statement letter mentioning the company has got at least B grade or copy of HAS certificate. company has got at least B grade or copy of HAS certificate.

2.2. 2nd HAS Document is not needed.2nd HAS Document is not needed.

Reason of HAS Implementation• Period of Halal Certificate : 2 years• Need a sytem which can assure halal during period of Halal

Certificate• Based on Islamic Law :

- To consume Halal Products is obliged for Moslem - All activities for guarding Halal Status of Products

become obliged, like : a. Make agreement with company to maintain

Halal Production consistenly b. Create HAS and It has to be applied by company which have got Halal Certificate

Reason of HAS Implementation (continued)

• Maqhashid Shari’ah• Trend of Increasing Market for Halal Product Trend of Increasing Market for Halal Product

Globally (Customer Satisfaction)Globally (Customer Satisfaction)• Continual product development (rapid Continual product development (rapid

development) in a short time development) in a short time • Supply chain management in global market• Join responsibility for halal production• LP POM – MUI as external body

Declining life cycle of product (continued)

Life style changes consumer behavior decline life cycle of product.

4 stages of product in the market (Fig 1)

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Figure 1. Life cycle of product Maarif and Tanjung, 2003)

Sales decline

Company responds

Production changes

Change or modification:ProductLay outPackagingProduction technology

Manufacturer may change raw material, ingredients, or formula ‘Change’ is critical points in maintaining halal status of product.

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Producer must set up Standard Operation Procedure (SOP) : a halal manual for detail technical procedures.

Any change must refer to SOP.

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Supply chain management (SCM) in global market

SCM maximize costumer satisfaction, reduce costs.

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Fig 2. Supply-Production-Distribution System

3 critical points in maintaining halal status:

1. Supplier’s Obligation

2. Transformation from raw materials to end product

3. Distribution system

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Supply chain management (SCM) in global market (continued)

3.1. Supplier’s ObligationMany suppliers

ALL must provide halal materials

Little suppliers Continuously supply halal materials

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3.2. Transformation from raw materials to end product

All steps of transformations in Production process, from raw materials to end product, must be clearly documented in HAS so that they can be evaluated properly

Figure 3.

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3.2. Transformation from raw materials to end product

In Supply Chain Management, to reduce cost of investment, production or inventory, some producers may conduct toll manufacturing by using several companies which produce some components of product.

Consequently, HAS will also include the company where toll manufacturing is taken.

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3.3. Distribution systemSome products are easily being contaminated with non-halal product (e.g. meat), producer must pay great attention during distribution to ensure that products are maintained in halal status until they reach consumers.

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3.3. Distribution system

Figure 4. click there are several bodies involved in this system

which means that halal status of product must be controlled in all bodies involved.

Thus HAS include services such as importer, distributor, transportation and retailer.

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LP POM – MUI as an external body As an external body, LP POM MUI cannot

control production process in a company all the time,

although there is a surveillance allows LP POM MUI to visit the production site without information prior to visit.

Therefore a team of Internal Halal Auditors is required in the implementation of HAS.

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Three components must be carried out in HAS: 1. Conducting internal audit regularly,

2. Conducting corrective action when any distortion occurs or procedural errors ; and

3. Making a report to LP POM MUI every 6 months whether there are changes in raw materials and production process.

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LP POM – MUI as an external body (continued)

Halal production is a join responsibility (Total Quality Management) (continued)

The implementation of HAS needs Total Quality Management :

Internal Halal Auditor and the Top Management are responsible to maintain the halal status of product.

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CustomerFocus

ProcessImprovement

TotalInvolvement

LeadershipEducation and Training Supportive structureCommunications Reward and recognition

Measurement

ContinuousImprovementObjective

Principles

Elements

Fig 5. The Total Quality Management System (Arnold dan Chapman, 2004)

Components in Total Quality Management (Figure 5)

1. Halal policy2. Halal management structure3. Communication4. Training and socialization5. Materials must be absolutely halal6. Management review

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Halal policy. Support from the top management must be in the form of documented halal policy, hence it can be implemented in halal production process.

Halal management structure. It is a management structure that supports the implementation of HAS in manufacturer.

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Communication. It is the way to encourage transfer of knowledge and internal coordination.

Training and socialization. Main purposes of training and socialization for employee are to improve an understanding of Islamic law related to halal product.

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Materials must be absolutely halal. Any substance or process that can be identified as a critical point in production process must be mentioned in Halal Guide as a technical guidance. HAS does not tolerate low risk, medium risk or high risk in halal production process (zero tolerance)

Management review. It is necessary to continuously review and improve the system to assure halal production process.

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ConclusionImplementation of HAS is required to be able to :

1. encourage the manufacturer to be aware in maintaining the halal status of the products;

2. renew halal certificate, and

3. provide costumer satisfaction.

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Procedure to be Approved by LP POM MUI

Requirement1. Halal Certifier Body should be a Public

Organization 2. Supported by Islamic Community3. Have at least 2 scientist as Auditor4. Have at least 3 Ulama (Islamic Scholars

Ship)5. Have Standard Operating Procedure for

Auditing and Administration

Step by step to be approved1. Application by letter2. Giving full information by answering the

questionnaires (attached)3. Administrative evaluation4. Verification by side visit, including

following audit procedure5. Giving status

Thank You Very Much

For The Attention

Documents

Overview of Halal Certification