Indonesia to Check Grocery Shelves as Deadline for Halal Labels Nears

A halal label is seen on a pack of food displayed to sell at a mini market in Jakarta, Indonesia, February 15, 2019. (Reuters)
A halal label is seen on a pack of food displayed to sell at a mini market in Jakarta, Indonesia, February 15, 2019. (Reuters)
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Indonesia to Check Grocery Shelves as Deadline for Halal Labels Nears

A halal label is seen on a pack of food displayed to sell at a mini market in Jakarta, Indonesia, February 15, 2019. (Reuters)
A halal label is seen on a pack of food displayed to sell at a mini market in Jakarta, Indonesia, February 15, 2019. (Reuters)

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 world's biggest Muslim-majority country adopted a measure in 2014 requiring the labelling for 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 Indonesia's 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.

"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 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 the law, a step that could hit sales.

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

The 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 Indonesia's 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 request 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, said domestic trade official Moga Simatupang.

"We will take administrative action against non-compliance, so we urge importers to immediately register to get halal labels," he added.

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 Adhi Lukman, the group's chairman.



Gold Prices Extend Gains as Equities, Bond Yields Weaken

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
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Gold Prices Extend Gains as Equities, Bond Yields Weaken

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold prices extended gains to a second session on Wednesday, driven by weaker equities and bond yields, while traders eagerly await US economic data to gauge the Federal Reserve's timeline on a potential rate reduction.

Spot gold was up 0.5% at $2,675.25 per ounce, as of 1033 GMT, and trading about $10 below a record high of $2,685.42 scaled last month. US gold futures gained 0.5% to $2,691.90, Reuters reported.

"Seems the gold market wants to see a record high, with prices marginally below the late-September record high with support coming from a slightly risk-off environment with equities down," UBS analyst Giovanni Staunovo said.

Safe-haven bullion tends to be a preferred investment in a low interest rate environment and during economic and geopolitical turmoil.

"The uncertainly surrounding US elections and geopolitical tensions will also support gold going forward," said ANZ commodity strategist Soni Kumari.

The benchmark 10-year note yields slipped to more than a one-week low, making non-yielding gold more attractive.

Market participants are keeping a keen eye on US retail sales, industrial production and weekly jobless claims data, due on Thursday.

Gold needs a stronger-than-expected data to change the rate-cut trajectory, but this should still boost investment demand and drive prices to a record high in the coming months, UBS' Staunovo said.

San Francisco Federal Reserve Bank President Mary Daly said the central bank remains on track for more cuts this year as long as data meets expectations.

Delegates at the London Bullion Market Association's annual gathering predicted gold prices would rise to $2,941 over the next 12 months and silver prices would jump to $45 per ounce.

Spot silver firmed 1.1% to $31.83. Platinum rose 0.6% to $990.05 and palladium was up 0.6% to $1,015.75.

The Guangzhou Futures Exchange (GFEX) will launch platinum and palladium futures in Q1 2025, according to the producers' council.