April 25, 2025 | 04:20 pm
TEMPO.CO, Jakarta - The halal product policy in Indonesia is now under the spotlight after the U.S. criticized the policy, considering it a non-tariff trade barrier.
On the other hand, the Indonesian government emphasizes the importance of halal certification for the protection of Muslim consumers.
Halal Certification Required in Indonesia
As a Muslim-majority country, the Indonesian government views halal certification as a form of consumer protection and legal certainty.
In Government Regulation No. 42 of 2024, which is a revision of Law No. 33 of 2014, it is explained that all products circulating, entering, and traded in Indonesia must be halal certified, unless they contain haram substances, which must be labeled as "non-halal" (Article 2, paragraphs 1-3).
This regulation covers the entire process, from the provision of materials, processing, storage, to distribution. The government also strictly regulates that halal production facilities and places must be separated from non-halal ones, both physically and in operational procedures.
The implementation of the Halal Product Assurance System (SJPH) is intended to ensure that the entire process runs consistently and integrated, under the supervision of the Halal Product Assurance Agency (BPJPH). The government enforces this regulation with the aim of providing consumer confidence and encouraging businesses to follow Sharia principles in production.
U.S. Views the Rules as Too Complex
On the other hand, the U.S., through the USTR, views Indonesia's halal policy as a barrier to foreign products entering the domestic market.
In the 2025 Trade Barriers Report, the U.S. criticizes Indonesia's halal regulatory process as being non-transparent and lacking public consultation. Many regulations, such as Ministry of Religious Affairs Decree No. 748/2021 and Decree No. 816/2024, were implemented without prior notification to the World Trade Organization (WTO).
In addition, the accreditation procedures for foreign halal certification bodies are deemed complicated and burdensome. The BPJPH requires accreditation through repetitive documents, strict halal auditor ratios, and mutual recognition agreements (MRA). This adds costs and time for U.S. exporters, especially in the food, cosmetic, and pharmaceutical sectors.
Tension Point in the WTO
The U.S. has raised this issue several times in the WTO forum, especially in the Technical Barriers to Trade (TBT) Committee. Indonesia was deemed to be violating its commitment to provide early notification of trade-impacting regulations. The USTR emphasizes that while they value the need for a halal system, overly bureaucratic and discriminatory procedures can hinder free and fair trade.
On the other hand, Indonesia considers these rules to be domestic and non-discriminatory, as they apply to all businesses, both domestic and foreign.
The differing of opinions highlights the importance of open dialogue between trading partner countries. Indonesia must continue improving the transparency and efficiency of the halal certification system to avoid creating discriminatory perceptions. Meanwhile, the U.S. and other countries also need to respect Indonesia's sovereignty in setting policies in line with its values and domestic interests.
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