Indonesia-US Trade Agreement and Halal Certification Obligations Draw Scrutiny

JAKARTA — The Center of Economic and Law Studies (CELIOS) has condemned what it describes as a “green carpet” clause for US products that would bypass mandatory halal certification obligations under the Indonesia-US reciprocal trade agreement (ART).

CELIOS Executive Director Bhima Yudhistira Adhinegara said the removal of halal certification requirements for US imported products would violate Law No. 33 of 2014 on Halal Product Assurance (UU JPH) and Government Regulation No. 42 of 2024 on the Implementation of Halal Product Assurance.

“Both regulations explicitly state that products entering, circulating, and traded within Indonesian territory must hold halal certification,” Bhima said during a discussion entitled “CELIOS Challenges the Indonesia-US Reciprocal Tariff Agreement in Court” on Monday (23/2/2026).

Bhima explained that the purpose of mandatory halal certification is to protect the Muslim community, which comprises 87 per cent of Indonesia’s population.

Meanwhile, the Halal Product Assurance Agency (BPJPH) has affirmed that the reciprocal cooperation agreement between Indonesia and the United States does not eliminate halal certification and labelling requirements for products entering and circulating in Indonesian territory. BPJPH Head Ahmad Haikal Hasan said claims that US products can enter Indonesia without halal certification are untrue.

Haikal stated that all products falling under the mandatory halal category that enter, circulate, and are traded in Indonesia — including imported products from the US and other countries — must comply with halal certification requirements in accordance with regulations, whether certified as halal in their country of origin or in Indonesia. Haikal maintained that halal certification obligations in Indonesia continue to be governed by Law No. 33 of 2014 on Halal Product Assurance and its derivative regulations.

“Reciprocal cooperation does not mean the elimination of halal obligations. Every product subject to mandatory halal requirements that enters Indonesia must hold halal certification and display halal labelling in accordance with prevailing laws and regulations,” Haikal said.