Indonesia Introduces Mandatory Halal Labeling for Cosmetics
Indonesia has introduced mandatory halal requirements for cosmetics sold in the country, requiring products to carry halal certification or a clear non-halal label. The new rules aim to give consumers greater clarity about the products they use and provide businesses with clear guidelines for compliance. The changes affect ingredient sourcing, manufacturing, product labeling, and ongoing regulatory checks.
New Rules for the Cosmetics Industry
The Indonesian government is implementing the halal requirements under its existing legal framework. Authorities say the policy is intended to protect consumers and provide greater certainty for businesses, rather than restrict trade.
Special provisions are being developed for micro and small businesses, as well as certain raw materials and consumer goods. These measures are intended to support smaller companies while maintaining compliance with the applicable regulations.
Indonesia’s cosmetics industry has continued to grow. Cosmetics exports reached US$473.8 million in 2025, up 13.7% from US$416.8 million in 2024. The country had 1,655 cosmetics businesses in July 2026, with more than 87% classified as small and medium-sized enterprises. By August 2026, more than 370,000 cosmetic products had been registered with the national regulator.
What Halal Certification Means for Cosmetic Products
The new requirements cover the ingredients used in cosmetics, the production process, packaging, and labeling. Under the draft Halal Product Assurance System guidelines, 11 critical control points must be considered throughout production.
Companies must establish a written halal policy and appoint a dedicated supervisor to oversee compliance. Supporting documentation or halal certificates are required for ingredients and other materials used in manufacturing, including additives, processing aids, cleaning agents, lubricants, packaging, and applicators.
Certain ingredients are prohibited. Pig-derived materials cannot be used in halal products, and ingredients from animals not slaughtered according to Islamic law are restricted in products applied to the lips, mouth, or teeth. Plant-derived ingredients are generally presumed halal, although additives and processing aids with uncertain halal status must be checked.
Manufacturers must keep halal and non-halal production facilities and equipment separate. Documented procedures and washing records are required to demonstrate that the rules are being followed.
Product Labeling and Compliance
Cosmetics can only display a halal label after certification has been granted by the relevant authority. The label must be visible and durable, with specific allowances for very small packaging.
Where agreements recognize certification from foreign halal bodies, products must display the Indonesian halal label and the registration number of the foreign halal certificate.
Companies must continue to demonstrate compliance after certification. The draft guidelines call for annual internal audits, periodic management reviews, and regular reporting to the authorities. Ingredient lists and information about halal production processes must be submitted every six months.
Products containing prohibited ingredients may carry a non-halal label under the applicable legislation. This does not mean every company can avoid certification by choosing non-halal labeling. Products without prohibited ingredients cannot simply use a non-halal label as a way to bypass the certification requirement.
Authorities Warn About Halal Certification Scams
Businesses and consumers have been warned about fraudulent schemes connected to the new rules. Scammers may claim to represent the national halal authority and demand payments described as fines, penalties, or fees to settle certification obligations.
Companies are being urged to remain alert and treat suspicious payment requests with caution.
The warning comes amid broader efforts to improve compliance in the cosmetics market. Earlier in 2026, authorities seized more than 2 million illegal cosmetic products, most of which had been imported from China without approval. The products came from 956 product lines and had an estimated value of 27.6 billion rupiah, or US$1.7 million.
The investigation was intended to protect consumers, improve compliance across the beauty sector, and address imports that bypass safety checks and taxes.
Personalization Continues to Shape the Beauty Market
Alongside the regulatory changes, Indonesia’s beauty market is seeing increased interest in personalized skin care and skin longevity. Technology-based tools are being introduced to help consumers better understand their skin and receive recommendations suited to their individual needs.
Artificial intelligence-powered skin analysis is one example of this development. Skin longevity clinics are another, with new concepts focusing on broader approaches to skin care and long-term skin health.
These developments reflect a wider interest in individualized beauty solutions across Indonesia.
What Businesses Need to Know
The introduction of mandatory halal requirements brings new responsibilities for cosmetics manufacturers and suppliers operating in Indonesia. Companies need to review ingredient documentation, production procedures, labeling practices, and reporting requirements to determine whether their products meet the rules.
Smaller businesses may benefit from specific provisions being developed by the government, but the exact requirements depend on the circumstances covered by the regulations.
For companies selling cosmetics in Indonesia, halal compliance is now an important part of product preparation and market access. Clear labeling, accurate documentation, and continued oversight will play a central role in meeting the country’s requirements.
