The signing of the Agreement on Reciprocal Trade (ART) between Indonesia and the United States in February 2026 has left unresolved issues and sparked public controversy. One of the issues that has emerged in public discussions concerns a cooperation clause stating that American products may enter Indonesia without halal certification.
The Dean of the Faculty of Animal Science at Universitas Gadjah Mada (Animal Science UGM), Professor Budi Guntoro, responded to the issue. He emphasized that the matter is not merely about removing halal requirements.
“What is at stake is not just a label, but fair competition for halal MSMEs, sovereignty of the food system, especially livestock-based food, and consistency in production ethics standards,” he said on Tuesday (Feb. 24).
Professor Guntoro explained that the ART does not eliminate the national halal regulatory framework. According to him, products that do not claim to be halal are not required to have halal certification, while products making halal claims must still comply with the Halal Product Assurance (JPH) regulations. He also warned of potential competitive disparities.
Domestic businesses, particularly micro, small, and medium enterprises (MSMEs), must continue to bear the cost and time required for halal certification, while imported products that do not display halal claims may be exempt from similar administrative burdens.
“This asymmetry in compliance costs could create an uneven playing field. MSMEs may lose on price not because of quality, but because of regulation,” explained Professor Guntoro, who also serves as Director of MUI’s Assessment Institute for Foods, Drugs, and Cosmetics (LPPOM) Special Region of Yogyakarta.
Professor Guntoro noted that the issue becomes even more sensitive when it involves livestock-based food products. This sector is directly related to public health, biosecurity, smallholder farmer welfare, and national food sovereignty.
The entry of cheaper imported products is feared to suppress the margins of livestock farmers and downstream businesses such as slaughterhouses and meat and dairy processors.
As a middle-ground solution, Professor Guntoro proposed four strategic measures. First, affirmative policies and subsidies for halal MSMEs so they do not bear compliance burdens alone. Second, strict enforcement of labeling transparency, including non-halal labeling to prevent misleading implied claims. Third, protection of strategic livestock commodities through rigorous audits and traceability systems. Fourth, honest public communication that halal certification represents infrastructure for trust and food ethics.
“Trade is important, but fairness, public trust, and food ethics must not be negotiable,” he stressed.
Reporter: Satria / Public Relations, Faculty of Animal Science
Author: Agung Nugroho
Post-editor: Rajendra Arya
Photo: CNBC Indonesia and Faculty of Animal Science UGM Documentation