Indonesia-US Trade Deal on Livestock Slaughter Risks Breaching Halal Assurance Regulations
Indonesia currently finds itself at a crossroads in defending its national halal standards. Under the reciprocal tariff agreement, or Agreement on Reciprocal Trade (ART), between Indonesia and the United States, the provisions contained in Annex III Article 2.22 concerning food and agricultural products have triggered alarm among halal practitioners, religious scholars, and domestic consumers.
The agreement is considered to provide a “special lane” for American products that could potentially breach Law No. 33 of 2014 on Halal Product Assurance (JPH).
One of the most critical points is the requirement for Indonesia to accept US slaughter practices that are claimed to comply with Standards and Metrology Institute for Islamic Countries (SMIIC) standards or the United States’ own internal mechanisms. Indonesia has been asked to accept slaughter practices in the US that conform to Islamic law or the standards of SMIIC member states.
The agreement also encompasses several exemptions from halal certification obligations. Non-animal products, animal feed, and US warehousing and packaging companies are all freed from halal certification requirements. With the aim of facilitating US exports of cosmetics, medical devices, and other manufactured goods that are currently required to hold halal certification, Indonesia will exempt American products from all halal certification and halal labelling requirements.
Furthermore, Indonesia will permit any US halal certification body recognised by Indonesian halal authorities to certify any product as halal, and Indonesia will simplify the process for recognising US halal certification agencies.
Handi Risza, Vice Rector of Universitas Paramadina, expressed concern that the agreement could disrupt Indonesia’s aspirations to become the centre of the global halal industry. “The reciprocal agreement must not be allowed to interfere with Indonesia’s focus on becoming a global halal hub,” he emphasised.
Should the government grant special treatment to US products without halal certification, it could create inequity both for other countries and for domestic business operators.