The national textile and textile products (TPT) industry is currently bracing for a significant shift as the mandatory halal certification deadline of October 17, 2026, approaches. Mandated under Government Regulation No. 42 of 2024, this requirement represents more than just a bureaucratic hurdle; it is a fundamental transformation that demands a total overhaul of production systems and supply chain management from the upstream to the downstream sectors.
Farhan Aqil Syauqi, Secretary General of the Indonesian Fiber and Filament Yarn Producers Association (APSyFI), emphasizes that the primary obstacle to this implementation is the lack of a fully integrated industrial ecosystem. He argues that halal certification will only be effective if it covers the entire production chain rather than stopping at the fiber and yarn levels. While some upstream players have already secured certification, their numbers remain limited and do not yet reflect nationwide readiness. This situation is further complicated by a heavy reliance on imported raw materials, which makes traceability—a core requirement for halal standards—exceedingly difficult to achieve.
Furthermore, uncertainty regarding technical mechanisms from the government continues to weigh on business owners. There is ongoing ambiguity about whether certification will follow a self-declaration scheme or a regular procedure, as well as how halal inspection agencies will evaluate textile products that differ vastly in nature from the food and beverage sector. Beyond these technicalities, there is still a lack of uniform understanding regarding the urgency of halal labeling for non-consumable goods. However, from a strategic perspective, these certifications could serve as a powerful non-tariff barrier to protect the domestic market against an influx of imported products that do not meet the same rigorous standards.
The downstream sector faces equally daunting challenges, as seen in the experience of sarong manufacturers like PT Prima Fara Textile. Company leader Lukas Prawoto explains that sarongs have evolved from purely religious attire into fashion items and gifts, with printing techniques now accounting for 65 percent of total production. This shift requires a new approach to competitiveness through broader halal branding, which now encompasses ethical business practices such as labor rights and fair operations. While tracing imported materials like polyester remains a major hurdle, the current practical focus is ensuring that all materials entering the production line verified against halal standards.
Looking ahead, building an integrated traceability system is the vital key to overcoming these challenges. One potential strategy involves adapting tracking models used in international trade agreements to suit domestic halal needs. The integration of advanced technologies such as the Internet of Things (IoT) and blockchain is widely viewed as the ultimate long-term solution. By utilizing these tools, every stage of production can be monitored and verified transparently, ultimately boosting consumer confidence and strengthening the national textile industry’s position as it meets the 2026 halal mandate.