Indonesian Political, Business & Finance News

Transparent labeling process

Transparent labeling process

From Republika

After reading the Info Halal article (Republika, Oct. 10), I am of the opinion that in many cases, the management of halal (approved by religion) labeling has done the right things.

The increasing public demand for the establishment of a "labeling institute" reflects the people's awareness, in particular that of the Moslem community, for the consumption of products permitted by Islam. This, in turn, would lead the producers to provide their products with halal labels, lest their merchandise would end up as unsalable goods in the market.

We believe that such an institute should operate as a dual- functioning establishment. It should function foremost as an institute to prevent Moslems from consuming the wrong food. A minimal fee of Rp 10 for the label is paid for when an item is bought by a consumer. The second function of the institute would be to safeguard the collection of such fees (estimated at Rp 36,240 trillion annually), since such an institute would have to be of a monopolistic nature, and free from competition with any other labeling company.

These two functions would stimulate activity in the Moslem community, more so among poverty-stricken groups (said to number 27 million people).

One might deem it quite ethical if profits made by the institute, which were derived from the public, would also be reinvested in the communities, not in individuals or conglomerates.

Such a dual-functioning institute should be run professionally and transparently. Supervision should not stop with the Indonesian Council of Ulemas and the Ministry of Health. It should be overseen by the Moslem community as well.

The establishment of the institute could be started with the sale of shares to the public. This method would keep its management on the level through general shareholders meetings. The institute could eventually become a publicly owned institute, enjoying the trust of the people.

If we were to take a close look at the present situation, we would observe that the Moslem community in particular is still collecting funds for the construction of mosques, religious boarding schools and orphanages by way of canvassing from door-to door or in the streets. Such a situation only strengthens the impression that the financial state of the Moslem community is in a sorry condition and that they are unable to complete their projects on their own.

MOHAMMAD BALHAQI

South Sumatra

View JSON | Print