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.



Experts Say US Partnership to Boost Saudi Economy to $2.6 Trillion

Photo shows President Trump and the Saudi Crown Prince with companies signing investment deals at the Saudi-US Investment Forum (Asharq Al-Awsat)
Photo shows President Trump and the Saudi Crown Prince with companies signing investment deals at the Saudi-US Investment Forum (Asharq Al-Awsat)
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Experts Say US Partnership to Boost Saudi Economy to $2.6 Trillion

Photo shows President Trump and the Saudi Crown Prince with companies signing investment deals at the Saudi-US Investment Forum (Asharq Al-Awsat)
Photo shows President Trump and the Saudi Crown Prince with companies signing investment deals at the Saudi-US Investment Forum (Asharq Al-Awsat)

Saudi Arabia’s signing of a strategic economic partnership with the United States marks a major shift in the Kingdom’s economic trajectory and reinforces its ambitions to become a top-12 global economy with a GDP target of $2.6 trillion, economic experts said.

The agreement was signed on Tuesday at the Al-Yamamah Royal Palace in Riyadh in the presence of Crown Prince and Prime Minister Mohammed bin Salman and US President Donald Trump. A series of deals and memoranda of understanding were also inked during the ceremony.

Mohammed Duliem AlQahtany, an economics professor at King Faisal University, told Asharq Al-Awsat the agreement represents a long-term strategic move that will reshape bilateral ties. “This partnership ushers in a new phase of comprehensive cooperation,” he said, citing its focus on security, energy, space, environment, health, and scientific research. “It’s a multi-dimensional framework that positions Saudi Arabia as a credible and capable global partner for the United States.”

AlQahtany added that the agreements support the Kingdom’s drive to diversify its economy away from oil and toward innovation and technology. The move is central to Riyadh’s plans to localize key industries, boost non-oil exports, reduce imports, and strengthen the trade balance.

He said the initiatives are also aligned with Saudi Arabia’s vision of becoming a major logistics hub connecting key global economies and continents.

Newly signed Saudi-US agreements in energy, defense, and mining are expected to accelerate the Kingdom’s transformation into a global industrial and technological power while bolstering environmental protection and national security, the Saudi economist said.

AlQahtany also said the energy sector deals will enhance efficiency and environmental sustainability by deploying advanced technologies for carbon capture and emissions reduction, a major challenge in the global energy transition.

He added that agreements in the mining sector could position Saudi Arabia as a key global player in an industry he described as “the future of industrial development.” The deals aim to localize supply chains, foster innovation, and help Saudi mining companies scale up to compete internationally in the coming years.

On the defense front, Al-Qahtani said the agreements would modernize the Kingdom’s defense systems through advanced US technologies, strengthening regional deterrence and deepening the Saudi-American alliance.

Additional agreements focus on emerging technologies such as artificial intelligence, space exploration, and advanced scientific research, he noted. They also aim to build human capital, improve customs data exchange, and promote collaborative medical research.

AlQahtany said the broader partnership also seeks to showcase Saudi Arabia’s cultural heritage, particularly the historical treasures of AlUla, on the global stage, while promoting biodiversity and environmental protection across the Kingdom.

The recently signed Saudi-US agreements represent a comprehensive model of strategic partnership that spans security, economy, technology, and culture, reflecting a shared vision to deepen cooperation in areas central to Saudi Arabia’s Vision 2030, a senior executive said.

Mohamed Omar, CEO of G.WORLD, told Asharq Al-Awsat that the Trump administration is actively forging new alliances in the region to advance its strategic goals, with Saudi Arabia playing a pivotal role due to its economic strength and growing regional and global influence.

“These agreements go far beyond traditional security and energy ties,” Omar said. “They encompass diverse sectors including conventional and renewable energy, defense, space, health, culture, mining, industry, trade, and transport, forming the foundation of a knowledge-based, diversified economy.”

He noted that the energy deals will enhance sectoral security and support the green transition, while cooperation with NASA and American research institutions will facilitate technology transfer and innovation, boosting local capabilities.

Omar said the defense agreements aim to modernize Saudi Arabia’s military systems and expand domestic manufacturing, reinforcing the Kingdom’s local defense industry.

He also highlighted efforts to develop the tourism and heritage sectors, particularly through AlUla projects, as part of a broader push to establish Saudi Arabia as a global cultural destination.

“These agreements will attract foreign investment in critical sectors such as mining, space, and clean energy, all of which are vital for income diversification,” he said. “They will also create job opportunities in high-tech, military, and research fields, while helping to develop national talent.”

Omar described the partnership as a “transformational leap” in Saudi-US relations - one that moves beyond traditional models to embrace a forward-looking, innovation-driven alliance that strengthens Saudi Arabia’s status as a regional economic and scientific powerhouse.