Indonesia’s stringent halal certification requirements have sparked international debate, with the United States labeling them as trade barriers while Jakarta defends them as essential consumer protections. The policy, outlined in Government Regulation No. 42 of 2024, mandates halal certification for all products sold in Indonesia unless explicitly labeled as non-halal, covering every stage from production to distribution. Authorities argue these measures ensure compliance with Islamic principles while safeguarding Muslim consumers—a critical consideration in the world’s largest Muslim-majority nation.
The U.S. Trade Representative (USTR) has criticized the regulations as overly complex and opaque in its 2025 Trade Barriers Report. American officials highlight concerns about sudden policy implementations, such as Ministry of Religious Affairs Decrees No. 748/2021 and No. 816/2024, which were enacted without WTO notification. Foreign businesses face additional hurdles, including repetitive documentation for halal certification body accreditation and strict auditor requirements, disproportionately affecting food, cosmetic, and pharmaceutical exporters.
At the heart of the dispute lies a clash between trade liberalization and cultural sovereignty. The U.S. has repeatedly challenged Indonesia’s policies at WTO Technical Barriers to Trade Committee meetings, arguing they violate transparency commitments. Jakarta counters that the rules apply uniformly to domestic and foreign entities, rejecting claims of discrimination. The standoff underscores broader tensions between global trade norms and national regulatory autonomy.
As discussions continue, Indonesia faces pressure to streamline its certification processes without compromising halal integrity. Meanwhile, trading partners must balance economic interests with respect for Indonesia’s right to uphold religious standards. The outcome could set a precedent for how nations reconcile faith-based regulations with international commerce.