Halal Compliance Crackdown: Administrative Fines and Forced Recalls for Ecosystem Violations

The Halal Product Assurance Organizing Agency (Badan Penyelenggara Jaminan Produk Halal – “BPJPH”) has issued Regulation No. 2 of 2026 on Imposition of Administrative Sanctions for Violations of Halal Product Assurance Implementation (“Regulation 2/2026”), which comprehensively establishes the penalty mechanisms for non-compliance within the halal ecosystem.[1] Under this new regulation, business actors, Halal Inspection Agencies (Lembaga Pemeriksa Halal – “LPH”), and auditors face immediate enforcement actions, including tiered written reprimands, fines, and mandatory market withdrawals if they fail to uphold strict halal processing and labeling standards.[2]