U.S. Flags Concerns over Indonesia's Halal Product Rules: Too Complex and Bureaucratic

April 25, 2025 | 04:38 pm

TEMPO.CO, Jakarta - The United States is taking aim at Indonesia's halal product regulations, labeling them as non-tariff trade barriers. The criticism appears in the 2025 Foreign Trade Barriers Report released by the Office of the United States Trade Representative (USTR).

According to the report, the U.S. is troubled by how Indonesia enforces its halal certification rules, calling them opaque, burdensome, and unfavorable to foreign businesses—particularly American exporters.

Lack of Transparency in Rulemaking

Since the enactment of Law No. 33 of 2014 on Halal Product Assurance, Indonesia has mandated halal certification across a wide array of products—from food and beverages to pharmaceuticals and medical devices.

While the goal is to provide certainty for domestic Muslim consumers, Washington argues the rollout of the policy lacks alignment with global trade transparency standards.

The USTR points to a recurring pattern in which Indonesia pushes through implementing regulations without first notifying the World Trade Organization (WTO) or engaging in consultation with foreign industry players.

For instance, the Ministry of Religious Affairs enacted Decrees No. 748/2021 and No. 816/2024 without any open dialogue with stakeholders, including overseas exporters.

This procedure is seen as violating Indonesia's commitments under the WTO's Technical Barriers to Trade (TBT) Agreement, which requires member states to provide advance notice before implementing regulations that may affect global trade.

The procedure, the USTR argues, violates Indonesia's obligations under the WTO's Technical Barriers to Trade (TBT) Agreement, which requires member countries to notify trading partners in advance of regulations that could impact global commerce.

Overly Bureaucratic Accreditation and Certification Process

Indonesia also requires foreign halal certification bodies (HCBs) to undergo a stringent accreditation process that the U.S. deems inefficient. Under BPJPH Regulation No. 3/2023, these organizations must meet numerous administrative demands—including extra documentation, strict auditor qualifications, and a mandatory mutual recognition agreement (MRA) with the Halal Product Assurance Organizing Agency (BPJPH).

The USTR says the process not only piles on red tape but also delays the accreditation of American HCBs. The added costs and long wait times are making it harder for U.S. industries to sell food, beverages, pharmaceuticals, and cosmetics in the Indonesian market.

Trade and Business Implications

The sweeping halal mandate has introduced legal and commercial uncertainty for U.S. companies. A provision requiring class D medical devices to be halal-certified by 2039, under Presidential Decree No. 6/2023, along with another rule—Government Regulation No. 42/2024—extending the halal deadline for imported food to 2026, has forced foreign businesses to overhaul their operations and supply chains.

The U.S. also argues that many of Indonesia's halal rules are based on shifting administrative criteria rather than scientific or food safety concerns. That unpredictability, the report says, makes long-term market planning for exporters difficult.

Washington continues to raise its concerns at the WTO, urging Indonesia to revise its halal policies to better align with the principles of fair and open trade.

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