Halal Concerns Mount Over Indonesia-US Reciprocal Trade Pact
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- Indonesia’s fresh trade pact with the US waives halal certification for most American goods, including food and manufacturing, raising alarms over conflicts with the country’s Halal Product Assurance Law.
- Signed by Prabowo Subianto and Donald Trump, the ART deal cuts tariffs on 99% of US exports to Indonesia but exempts US firms from halal rules, potentially upending national standards.
- Critics warn the US-Indonesia reciprocal trade agreement’s Annex III gives American products a halal bypass, from slaughter methods to packaging, clashing with Law No. 33/2014.
Indonesia stands at a crossroads in upholding its national halal standards. The Agreement on Reciprocal Trade (ART) between Indonesia and the United States includes provisions in Annex III, Article 2.22 on food and agricultural products that have raised red flags among halal practitioners, religious scholars, and domestic consumers.
Critics argue the deal creates a “special lane” for US products that could undermine Indonesia’s Law No. 33 of 2014 on Halal Product Assurance (JPH). A key flashpoint is Indonesia’s obligation to accept US slaughter practices, which are said to meet SMIIC standards or the US’s own internal mechanisms. Annex III exempts non-animal products, animal feed, and US warehousing and packaging firms from halal certification requirements.
Under the article, Indonesia exempts both genetically engineered and non-engineered non-animal products and animal feed from all halal certification and labeling obligations. It also frees containers and other materials used to transport food and agricultural products from halal certification and labeling mandates.
“Indonesia exempts US packaging, storage, and warehousing companies in the export supply chain of US agricultural products certified halal for Indonesia from halal competency testing and certification requirements for their employees. Indonesia shall not adopt or maintain policies requiring US companies to appoint halal experts to oversee operations,” the document states, dated Friday (Feb. 20, 2026).
Presidents Prabowo Subianto of Indonesia and Donald Trump of the US have signed the ART. The US will maintain a 19 percent reciprocal tariff on Indonesian imports, except for select products facing zero percent tariffs.
In return, Indonesia will eliminate tariff barriers on more than 99 percent of US exports across all sectors, including agricultural goods, health products, seafood, information and communication technology, automotive parts, and chemicals. The agreement also addresses halal certification rules.
Beyond slaughter practices, point 2.9 covers halal requirements for manufactured goods. It states that to facilitate US exports of cosmetics, medical devices, and other manufactured items currently needing halal certification, Indonesia will exempt US products from all halal certification and labeling requirements.
“Indonesia will also exempt containers and other materials used to transport manufactured products from halal certification and labeling requirements, except for those used for food and beverages, cosmetics, and pharmaceutical products,” the ART document reads.
In its third point, Indonesia will not impose labeling or certification requirements for non-halal products. It will allow any US halal certification body recognized by Indonesia’s halal authority to certify products as halal for import without additional requirements or restrictions.
“Indonesia will streamline the recognition process for US halal certification bodies by its halal authority and expedite approvals,” the agreement adds.
Indonesianpost.com | Republika
