Indonesia Accredits Two More US Halal Bodies

In Jakarta, Indonesia, the push for halal certification has reached new heights with the accreditation of two American halal certification organizations by the Indonesian Halal Product Assurance Agency (BPJPH). The American Halal Foundation (AHF) and the Islamic Society of the Washington Area’s (ISWA) Halal Certification Department, under the US Halal Chamber of Commerce, have been officially recognized, aligning with Indonesia’s upcoming mandate for all imported food, beverages, and meat to be halal-certified by October 17.

This move is significant as Indonesia prepares to enforce halal labeling laws in a country where Muslims constitute 87% of the population. The BPJPH’s decision comes at a crucial time when the US is experiencing a substantial trade deficit with Indonesia, amounting to a $23.3 billion goods trade deficit in 2022, while Indonesia reported almost a $12 billion surplus in its trade with the US.

Aly Ghanim, the quality manager at the US Halal Chamber of Commerce, highlighted that the BPJPH’s accreditation is a strategic step not directly influenced by the American government’s efforts to balance trade. Yet, it is expected to boost US exports by making American products more appealing to the Indonesian market. The accreditation aligns with Indonesian government standards, promising enhanced access to the country’s market and potentially mitigating the trade deficit.

The introduction of mandatory halal certification, effective from October, follows a five-year transitional period that began in 2019, reflecting Indonesia’s commitment to halal compliance. Despite the trade imbalance, the recognition of additional American halal certifiers—bringing the total to five, including the Islamic Services of America (ISA), the Islamic Food and Nutrition Council of America (Ifanca), and Halal Transaction Omaha (HTO)—signals a growing acknowledgment of the importance of halal certification in international trade.

James Chambers, COO of the AHF, pointed out the underestimation of Indonesia’s market potential among American businesses, emphasizing the country’s status as the world’s largest Muslim-majority nation. This underrecognition extends to the broader strategic focus on the Middle East, overlooking the significant demand for halal-certified goods in Indonesia.

The BPJPH’s accreditation of the AHF and ISWA, therefore, not only marks a pivotal moment for US-Indonesia trade relations but also shines a light on the untapped potential of the Indonesian halal market. As American companies adapt to these changes, the broader implications for global halal certification and trade dynamics are yet to unfold, promising a new chapter in international business compliance and cultural sensitivity.