Halal Certification Regulations as Technical Barriers to Trade and Their Impact on Domestic Industrial Competitiveness: A Legal Analysis of Indonesia–United States Trade

Abstract

Indonesia’s halal certification regime involves consumer protection, freedom of religion, standardization, and international trade. Within the World Trade Organization (WTO) framework, mandatory halal certification may be examined as a technical regulation and/or conformity assessment procedure related to the Agreement on Technical Barriers to Trade (TBT). The issue has become more relevant following the signing of the Agreement on Reciprocal Trade (ART) between Indonesia and the United States on 19 February 2026. This study analyzes the legal position of halal certification under WTO law, the implications of the ART for the recognition of foreign halal certification, and the potential consequences for domestic industries and micro, small, and medium enterprises (MSMEs). This normative legal research applies statutory, conceptual, and international-agreement approaches. Primary legal materials include Law Number 33 of 2014 on Halal Product Assurance and its amendments, the TBT Agreement, GATT 1994, the ART documents, and official government explanations. The study finds that the ART does not abolish halal certification requirements for food and beverages; rather, it addresses non-tariff barriers, standards, conformity assessment procedures, and recognition of foreign halal bodies. Such recognition must be transparent, objective, verifiable, and consistent with Indonesia’s legitimate level of consumer protection. The principal risk for domestic industries is not simply increased imports, but an imbalance in compliance costs and procedures. The government should therefore equalize procedural treatment, accelerate MSME certification, strengthen post-market surveillance, and ensure that technical measures are applied in a non-discriminatory manner.