Halal Compliance Deadline Pressures Indonesian Food Industry

Indonesian authorities plan to inspect grocery shelves for halal label compliance, with challenges faced by some importers and restaurants. Halal labeling, mandated since 2014, affects trade dynamics, with calls for foreign certifiers. Some businesses seek waivers amid complex supply chains, awaiting government response.

Indonesian authorities are set to begin inspections of grocery store shelves to ensure compliance with a law mandating halal labeling for food products from this Friday. Despite significant adherence from local businesses and global producers, some importers and eateries report challenges in meeting the Oct. 17 deadline.

Global food companies wish to tap into Indonesia's robust halal market but face complex supply chains and absence of clear guidelines, according to Lydia Ruddy of the American Chamber of Commerce. She highlighted potential trade disruptions and increased costs as issues, urging the government to involve foreign certifiers to expedite overseas inspections.

The regulation requires non-compliant products or restaurants to openly state their lack of adherence to Islamic law, potentially affecting sales. As inspections commence, authorities warn of administrative actions, including removal of non-compliant goods from shelves, urging prompt labeling registration among importers.

(With inputs from agencies.)