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)
TT

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.



Inflation in Saudi Arabia Reaches 1.7% in September amid Rising Housing Costs

Food and beverage prices rose by 0.8% (SPA)
Food and beverage prices rose by 0.8% (SPA)
TT

Inflation in Saudi Arabia Reaches 1.7% in September amid Rising Housing Costs

Food and beverage prices rose by 0.8% (SPA)
Food and beverage prices rose by 0.8% (SPA)

The inflation rate in Saudi Arabia recorded 1.7% in September on a year-on-year basis, rising from 1.6% in July, with housing rents once again acting as the main driver.

According to data from the General Authority for Statistics (GASTAT) released on Tuesday, housing rents overall increased by 11.2% in September, with apartment rental prices rising by 10%. This contributed to the overall increase in the housing, water, electricity, gas, and other fuel categories, which collectively jumped by 9.3%.

Rising rental prices have been the main driver of inflation in Saudi Arabia for most of this year. This comes as housing prices in the Kingdom are being fueled by limited property supply, alongside population growth and the influx of expatriates seeking housing in the Kingdom.

Food and beverage prices rose by 0.8%, while the restaurant and hotel sector increased by 1.7%, driven by a 1.5% rise in catering services. The education sector also saw a 1.6% increase, primarily due to a 3.8% rise in middle and secondary school tuition fees.

On the other hand, transport prices fell by 3.3%, benefiting from a 4.5% drop in vehicle purchase costs. Home furnishings and equipment prices decreased by 3.7%, influenced by a 7% decline in the prices of furniture and carpets, and a 3.2% drop in clothing and footwear.

On a monthly basis, inflation rose by 0.1%, driven by a 0.6% increase in housing, water, electricity, gas, and other fuel prices. Food and beverage prices increased by 0.3% compared to August, while transport prices fell by 0.4%.