The Indonesian government has announced new import verification rules ahead of the full mandatory halal certification for imported processed foods starting in Oct. Nongshim(004370)·대상 and other major Korean food corporations that have staked everything on exports have been put on alert. Corporations expected that once they obtained halal certification, the door to exports would open starting next month and had been waiting to ship products, but they hit a non-tariff barrier from the shipment stage, even before the vessels to carry their goods arrived.
According to the industry on the 10th, the Korean Chamber of Commerce in Indonesia (KOCHAM) recently gathered urgent feedback from major domestic food exporting corporations and local subsidiaries regarding difficulties tied to the Indonesian Halal Product Assurance Agency's (halal agency) revised advance inspection (LPPH) rules for imports.
The core of the LPPH revision is that all foods exported to Indonesia must undergo prior verification by a halal inspection body up to the exporting country's warehouse before customs declaration. The Indonesian halal agency announced detailed rules to this effect late last month ahead of the full mandatory halal certification and put them into effect starting on the 9th.
The new halal regulation is seen as expanding the verification scope beyond simple ingredient testing to "the entire transport and storage process." LPPH inspection items include an assessment of contamination risks in logistics processes, such as whether the delivery method was previously used for non-halal products and whether halal and non-halal products are completely separated in loading and storage warehouses.
KOCHAM warned that if this system takes effect, shipments could be delayed by at least one month and up to two months. It also saw a high likelihood that logistics costs would rise due to additional inspection fees. Korean food corporations must review their contract structures with logistics agents one by one and submit documentation each time to prove a halal-dedicated line throughout the logistics process.
A shortage of inspectors is another problem. On-site inspection at the shipping warehouse is essential to obtain a certificate, but there is already a shortage of professional inspectors and institutions designated by the halal agency. Given this reality, waiting times for shipments to Indonesia will inevitably grow longer.
With a population of more than 200 million, Indonesia is the third-largest ASEAN export market for Korean foods after Vietnam and Thailand. Korean food exports to Indonesia total $300 million a year (about 400 billion won). By item, dried laver exports are the largest. Beverages such as Milkis and Bacchus, as well as Buldak spicy ramyeon and Shin Ramyun, are also popular. Last year, exports of K-ramen reached $25 million (about 30 billion won), up more than 30% from 2024.
Indonesia is also a proving ground for entry into the global halal market of 2 billion Muslims. The quality assurance of having passed the halal agency's certifications and regulations becomes a foundation for expanding into large markets such as Malaysia, the Middle East, and Central Asia.
Food corporations exporting seasoned laver and ramyeon are in a bind. An industry official said, "The Indonesian government intends to regulate imported foods starting from the exporting country's port," and added, "We are preparing our own countermeasures, but the implementation lead time is short, so it feels daunting." The official said, "In particular, for fresh foods with short shelf lives, we will have to accept immediate losses," and added, "We hope the government will step in to help improve the system."
Based on the opinions collected from domestic corporations, KOCHAM plans to work with the American Chamber of Commerce (AMCHAM) and others to submit a proposal to the Indonesian government and request a realistic extension of the grace period. Another industry official said, "We are reviewing optimization of verification schedules and improvements to logistics processes to minimize practical burdens," and added, "We hope for diplomatic and trade cooperation at the government level."