The signing of the Agreement on Reciprocal Trade (ART) between Indonesia and the United States (US) in February 2026 has sparked a public controversy, with growing concerns that American goods may be allowed into the country without halal certification.
Responding to the controversy, Prof. Ir. Budi Guntoro, S.Pt., SH, M.Sc., PhD., Dean of the Faculty of Animal Science Universitas Gadjah Mada (Fapet UGM), stressed that the matter is far more complex than simply scrapping the halal certification requirement.
“This isn’t just about a label, but fair competition for halal MSMEs, the sovereignty of the food system—particularly livestock-derived food—and the consistency of ethical production standards,” he said on Saturday (21/2).
Budi argued that the substance of the ART doesn’t eliminate the national halal framework. Non-halal-labeled products are not obliged to obtain certification, whereas products that do make a halal claim must still adhere to Jaminan Produk Halal (Halal Product Assurance, or JPH) standards.
He also pointed out the potential for competitive inequality. Local businesses, especially MSMEs, still face the expense and delays of halal certification, whereas imported products making no halal claim can avoid the same administrative hurdles.
“This asymmetry in compliance costs could create an uneven playing field. MSMEs may lose out on price; not because of quality, but because of regulation,” said Budi who also serves as the Director of LPPOM Yogyakarta.
The issue became even more sensitive when it comes to livestock-based food products. Budi assessed that this sector is directly related to public health, biosecurity, small-scale farmers’ well-being, as well as national food sovereignty. There are concerns that the influx of cheaper imported products will squeeze the profit margins of livestock farmers and downstream businesses, such as slaughterhouses and meat and dairy manufacturers.
As a middle ground, Budi proposed four strategic measures. First, affirmation and subsidies for halal MSMEs so they don’t have to bear the compliance burden on their own. Second, enforcement of label transparency, including non-halal labeling to prevent implied claims that mislead consumers. Third, the protection of strategic livestock-derived food commodities through rigorous audits and strict traceability. Fourth, honest public communication that halal serves as the very infrastructure of trust and food ethics.
“Trade is important, but fairness, public trust, and food ethics cannot be negotiated,” he asserted.
Original article: https://fapet.ugm.ac.id/art-ri-as-picu-polemik-sertifikasi-halal-dekan-fakultas-peternakan-ugm-soroti-dampaknya-bagi-umkm-dan-pangan-nasional/
Translated by: Merlin Fatika Ramadhani