American Businesses Face Losses Without Indonesian Halal Certification, Says MUI

The Head of the Indonesian Council of Islamic Scholars (MUI)’s Da’wah Division, Zaitun Rasmin, believes that American businesses will likely continue to use halal labels if they want to penetrate the Indonesian market. Without halal certification, Zaitun says, their products may not sell well in Indonesia. Zaitun is confident that businesses in the United States understand the characteristics of the Indonesian market, which is predominantly Muslim and has a high level of concern for halal-labelled products. “Therefore, I am sure they do not want to suffer losses by entering here without a halal label,” Zaitun said in a written statement on Tuesday, 24 February 2026. Scroll down to continue reading Zaitun added that it is possible that products from the United States already have halal certification in their country of origin. However, he said, the problem arises in the administrative aspect or the equivalence of foreign halal certification bodies with those in Indonesia. Therefore, Zaitun encourages the Indonesian government and halal authorities to accelerate the process of equating credible foreign halal certification bodies. The aim is to prevent double certification, which could hinder trade flows. This statement from the Head of MUI’s Da’wah Division responds to news that US products will not need halal labels to enter Indonesia after the signing of a trade agreement by President Prabowo Subianto and US President Donald Trump last week. The Agency for the Organisation of Halal Product Guarantee (BPJPH) stated that the news is incorrect. “It is not true that the information circulating in the community is that American products entering Indonesia do not need a halal label,” said the Head of BPJPH, Ahmad Haikal Hasan, in a written statement on Tuesday, 24 February 2026. Haikal claims that the halal certification of imported US products will comply with Indonesian regulations and be carried out transparently. “Don’t worry, when it comes to halal, there is nothing that is kept secret, nothing that is hidden. Nothing is violated,” said Haikal. According to Haikal, the halal label requirements between Indonesia and the US are set out in the Mutual Recognition Agreement (MRA). The MRA is a form of recognition of halal standards between BPJPH and Foreign Halal Certification Bodies (LHLN) in the United States. Haikal said that this agreement has been in effect before the signing of the Indonesia-US trade agreement last week. Haikal said that when the halal authorities in the US have already given a halal label, then Indonesia does not need to re-examine the halal status of the product. “It will only be registered, and will not be processed from the beginning,” he said. Meanwhile, the Indonesian and American governments officially signed a reciprocal trade agreement in Washington D.C., United States, on Thursday, 19 February 2026. The trade agreement discusses import tariffs and the removal of trade barriers and was signed by Prabowo Subianto and Donald Trump. Following the agreement, Indonesia provides halal certification exemptions for a number of US products entering the country, including cosmetics, medical devices, and manufactured goods. However, cosmetic and medical device products must still obtain marketing authorisation from the National Agency of Drug and Food Control (BPOM) before they can be marketed in Indonesia. Editor’s Choice: Explanation from the Association Regarding Extortion in Halal Certification.