Indonesia to check grocery shelves as deadline for halal labels nears

Some major global food producers say they need more time.

JAKARTA: Indonesian authorities plan to inspect grocery store shelves to check compliance with a law requiring halal labels on food items from Friday, officials said, although some importers and restaurants face hurdles in complying.

The worlds biggest Muslim-majority country adopted a measure in 2014 requiring the labelling of restaurants and food products, setting an Oct 17 deadline to ensure items are suitable for consumption under Islamic law.

While most businesses in the nation of 280 million have complied, along with some major global food producers, others say they need more time.

They (some members) want to be part of Indonesias strong market for halal products, but are still encountering complex supply chains and lack of clear guidelines, said Lydia Ruddy, managing director of the American Chamber of Commerce (AmCham).

These potentially can lead to trade disruptions and higher costs, she told Reuters, adding that AmCham was in talks with the government on the matter.

She called for more foreign certifiers to speed the inspection of products and raw materials abroad so as to help the affected AmCham members.

The law requires products or restaurants without the certification to declare they do not comply with Islamic law, a step that could hit sales.

Islamic law prohibits the consumption of pork or intoxicants such as alcohol, while meat can only be eaten if the animals were slaughtered by prescribed methods.

Indonesias halal certifying body, BPJPH has asked the government for a two-year waiver on some raw materials used in the food and beverages industry, as well as products of small businesses, but the president has yet to sign off, its head Aqil Irham said.

With Indonesias president-designate Prabowo Subianto set to take over from the incumbent Joko Widodo next weekend, it was not clear if such a dispensation could be issued in time.

The presidential office did not immediately respond to requests for comment.

The trade ministry deferred questions on the waiver to the BPJPH.

Authorities plan inspections on Friday to check compliance and issue a formal warning to producers of items that lack clear labels.

We will take administrative action against non-compliance, so we urge importers to immediately register to get halal labels, said domestic trade official Moga Simatupang.

In the absence of compliance, such products will be removed from stores, he added, without setting a timeframe.

Most of the 400 members of the Indonesian Food and Beverage Industries Association have complied, but restaurants and hotels face difficulties because authorities need time to check menu offerings, said the groups chairman Adhi Lukman.

Conservative interpretations of Islam have gained ground in Indonesia in the past few years, ushering in major changes to the economy, across industries from entertainment to banking.