The United States' Track Record of Tinkering with Indonesia's Halal Certification Rules
Halal certification has become one of the key points in the Agreement on Reciprocal Trade (ATR) between Indonesia and the United States. Under the agreement, signed by President Prabowo Subianto and US President Donald Trump on 19 February 2026, the two countries established a number of provisions governing halal certification and labelling obligations, particularly for US-manufactured products.
Indonesia agreed to exempt US products such as cosmetics, medical devices and other manufactured goods from halal certification and labelling requirements. Containers and materials used to transport manufactured goods will also be exempted from halal certification and labelling obligations, with the exception of those used for food and beverages, cosmetics and pharmaceuticals.
Furthermore, Indonesia will permit any US halal certification body recognised by the Indonesian Halal Authority to certify any product as halal for import into Indonesia without additional requirements or restrictions.
However, the halal issue in the Indonesia-US trade agreement did not emerge overnight. The United States has a long track record of attempting to influence Indonesia's halal certification regulations.
In the 2025 National Trade Estimate Report on Foreign Trade Barriers, the US government recorded a number of objections to the implementation of Law No. 33 of 2014 on Halal Product Guarantee. In the report, the US highlighted that halal certification is mandatory for food, beverages, medicines, cosmetics, medical devices, biological products, genetically engineered products, consumer goods and chemical products marketed in Indonesia. All business processes from production through to distribution and marketing are covered by these requirements.
Through the United States Trade Representative (USTR), the US government expressed concern that several implementing regulations of the Halal Product Guarantee Law were finalised before draft policy notifications were submitted to the World Trade Organisation (WTO), as required under the WTO Agreement on Technical Barriers to Trade.
The halal issue was also one of the factors behind President Trump's threat to impose 32 per cent tariffs on Indonesian products. The US administration had long regarded Indonesia's halal certification policy as a barrier to trade, arguing that it created difficulties for American exporters seeking to enter the Indonesian market.
In the reciprocal trade agreement, the provisions in Annex III, Article 2.22, concerning food and agricultural products have raised alarm among halal practitioners, Islamic scholars and domestic consumers. Annex III stipulates that non-animal products, animal feed, and US warehousing and packaging companies are to be exempted from halal certification requirements.
On 18 October 2024, the Indonesian government issued Government Regulation No. 42 of 2024, amending Government Regulation No. 39 of 2021, which extended the deadline for halal certification compliance for imported food and beverages until 17 October 2026. This regulation was issued amid ongoing pressure from the United States regarding the scope and implementation of Indonesia's halal certification regime.
The concessions made in the ATR have sparked concern among religious organisations, consumer advocates and halal industry stakeholders, who fear that relaxing certification standards for US products could undermine Indonesia's ambition to become a global halal hub and may potentially contravene the Halal Product Guarantee Law itself.
Indonesia agreed to exempt US products such as cosmetics, medical devices and other manufactured goods from halal certification and labelling requirements. Containers and materials used to transport manufactured goods will also be exempted from halal certification and labelling obligations, with the exception of those used for food and beverages, cosmetics and pharmaceuticals.
Furthermore, Indonesia will permit any US halal certification body recognised by the Indonesian Halal Authority to certify any product as halal for import into Indonesia without additional requirements or restrictions.
However, the halal issue in the Indonesia-US trade agreement did not emerge overnight. The United States has a long track record of attempting to influence Indonesia's halal certification regulations.
In the 2025 National Trade Estimate Report on Foreign Trade Barriers, the US government recorded a number of objections to the implementation of Law No. 33 of 2014 on Halal Product Guarantee. In the report, the US highlighted that halal certification is mandatory for food, beverages, medicines, cosmetics, medical devices, biological products, genetically engineered products, consumer goods and chemical products marketed in Indonesia. All business processes from production through to distribution and marketing are covered by these requirements.
Through the United States Trade Representative (USTR), the US government expressed concern that several implementing regulations of the Halal Product Guarantee Law were finalised before draft policy notifications were submitted to the World Trade Organisation (WTO), as required under the WTO Agreement on Technical Barriers to Trade.
The halal issue was also one of the factors behind President Trump's threat to impose 32 per cent tariffs on Indonesian products. The US administration had long regarded Indonesia's halal certification policy as a barrier to trade, arguing that it created difficulties for American exporters seeking to enter the Indonesian market.
In the reciprocal trade agreement, the provisions in Annex III, Article 2.22, concerning food and agricultural products have raised alarm among halal practitioners, Islamic scholars and domestic consumers. Annex III stipulates that non-animal products, animal feed, and US warehousing and packaging companies are to be exempted from halal certification requirements.
On 18 October 2024, the Indonesian government issued Government Regulation No. 42 of 2024, amending Government Regulation No. 39 of 2021, which extended the deadline for halal certification compliance for imported food and beverages until 17 October 2026. This regulation was issued amid ongoing pressure from the United States regarding the scope and implementation of Indonesia's halal certification regime.
The concessions made in the ATR have sparked concern among religious organisations, consumer advocates and halal industry stakeholders, who fear that relaxing certification standards for US products could undermine Indonesia's ambition to become a global halal hub and may potentially contravene the Halal Product Guarantee Law itself.