Indonesia’s halal mandate: Nonetheless a method to go for full protection
Indonesia has enforced a mandate since October 2024 that every one native and imported merchandise – together with meals and drinks – be halal-certified with a purpose to legally function within the Indonesian market, until these are on a pre-approved Optimistic Listing.
However regardless of a lot fanfare over this regulation going reside, the actual fact is that numerous firms – particularly all micro, small and medium enterprises (MSMEs) within the nation are usually not but topic to this new regulation, resulting from quite a lot of various factors.
The federal government has pushed for this to happen in October 2026 as an alternative – and in Indonesia, MSMEs make up some 28 million companies in complete a quantity to not be taken calmly, therefore it has additionally taken some main steps to extend certifications on this group.
“Many MSMEs have discovered the halal certification course of undertaken by bigger firms to be too difficult and too expensive, resulting in many challenges within the transition of this group to finish their certifications,” Indonesia Halal Merchandise Assurance Company (BPJPH) Division for Halal Registration and Certifications Head Dr Mamat Salamet Burnanudin mentioned.
“However this group may be very a lot the spine of Indonesia’s economic system, so we realised the necessity for particular measures to make sure they weren’t left behind and created a brand new digital course of for MSMEs dubbed the Halal Self-Declaration Programme (SIHALAL) which helps these coping with easy merchandise get licensed at decrease prices.”
Dr Mamat highlighted that the simplified system had already confirmed efficient after serving to to carry ‘a whole lot’ of MSMEs into the halal certification ecosystem as of September 2025 – however the reality stays that hundreds of thousands extra of those firms stay, lots of which have subsequent to no digital entry.
As such, there stays an extended method to go for Indonesia’s halal mandate to attain full protection, and BPJPH might want to give you many extra options within the 12 months forward if it intends to maneuver forward with the October 2026 enforcement date.
There are different extra particular challenges for the federal government to contemplate too – roughly six months after the mandate got here into pressure in October 2024, authorities spot checks revealed that a number of confectionery merchandise circulating available in the market had pork/porcine content material.
A number of of those offending merchandise had in actual fact already gone by the certification course of and been labelled as halal, evidencing the truth that the final certification course of itself will not be foolproof, not to mention the simplified model.
Indonesia truly has way more formidable plans spurring from this halal mandate, described as a ‘golden alternative’ for the native meals trade – it desires to determine itself as a frontrunner when it comes to worldwide halal regulatory harmonisation, or a minimum of alignment throughout markets – however it’s clear that there’s a lot extra to be finished earlier than it might probably get up to now.
Salt governance driving regional reformulation
The implementation of laws to manipulate sodium and salt content material has seen a substantial amount of competition and doubt from each the APAC meals trade and lecturers.
Nonetheless, identical to with sugar regulation, as quickly as policymakers made the choice to implement sodium governance, the meals trade had no alternative however to reply quickly with reformulation methods.
Two markets the place this has been most obvious are Thailand with its tiered salt taxation system modelled after sugar taxation; and Singapore with its Nutri-Grade labelling system set to be expanded to incorporate sodium and fats in 2027.
“Taxation coverage is a useful gizmo to affect each meals manufacturing practices and client behaviours, in order to cut back well being points from excessive sodium consumption,” Thai Excise Division DG Kulaya Tantitemit mentioned.
Equally, Singapore’s Nutri-Grade will comply with the identical grading system that it has used for sugar-sweetened merchandise to this point, the place merchandise are given an alphabetical grade from ‘A’ to ‘D’ primarily based on the content material of salt/sugar.
“This grading system encourages reformulation inside every product sub-category, whereas additionally preserving the variety of prepacked salt, sauces, seasonings, prompt noodles and cooking oils (SSSIO) merchandise offered in retail settings,” Singapore’s Well being Promotion Board (HPB) acknowledged.
Certainly, many product producers affected by these modifications have already been engaged on reformulating present merchandise to keep away from taxation in Thailand or being given a low (C/D) grade in Singapore.
“Salt discount and reformulation applied sciences have positively been the highest space of curiosity for meals companies in 2025, probably pushed by regulatory necessities,” Kerry Senior Strategic Advertising supervisor Style Jie Ying Lee mentioned.
“There’s additionally sturdy demand for decrease salt recipes so as to have the ability to connect claims like ‘low salt’ or ‘decreased salt’ on product labels – all of which is driving reformulation on this space.”
Even non-public retailer manufacturers are shifting into this space – NTUC FairPrice just lately launched its wildly well-liked Unsalted Potato Chips containing zero added salt and trans fat, which grew to become an in a single day hit with customers raving about these nonetheless delivering scrumptious crunch and style regardless of being salt-free.
Different markets are additionally making preparations on this regard: the South Korean authorities launched a variety of reduced-sodium and sugar merchandise nationally as a part of a nationwide technique; whereas condiment big Lee Kum Kee launched a reduced-salt model of its flagship soy sauce in Hong Kong as properly.
Many extra such merchandise are anticipated to hit cabinets as soon as governance comes into pressure, whether or not in Thailand, Singapore or different APAC markets.
Taxation and progress: For higher or worse
Taxes and excise charges have and at all times might be a significant component on the meals trade in any market, however in a time when financial instability is rife, the affect of this has been magnified.
In some industries such because the Malaysian beer sector, this affect has sadly been lower than optimistic: Malaysia has been identified for a while to have the second-highest excise fee on beer on the planet, however the nation’s latest Price range 2026 announcement noticed the federal government enhance alcohol excise obligation by an additional 10% to RM192.50 (US$47.22) per litre beginning November 2025.
In keeping with two of the most important beer firms within the nation, Carlsberg and Heineken, that is a minimum of a ‘menace’ to native economic system.
“Malaysia already has one of many highest beer excise charges on the planet, so [this further increase] will additional widen the worth hole between reliable and illicit beer – On condition that the native beer sector pays some RM3.3bn (US$782.5m) in taxes yearly, making up 1.5% of complete nationwide tax income, [this increase] poses a menace to authorities income assortment in addition to trade and client security,” each companies mentioned through a Confederation of Malaysian Brewers Berhad (CMBB) assertion.
“Worldwide greatest practices say alcohol excise tax ought to correspond with the beverage ABV – however in Malaysia the excise regime is inequitable with the next tax fee imposed on decrease ABV gadgets like beer in comparison with larger ABV ones like wine and spirits, a scenario that’s driving many price-conscious customers to show to illicit beer.”
Beer (5% ABV) in Malaysia is topic to RM1.75 (US$0.43) excise per diploma of alcohol, in comparison with wine (14% ABV) at and premium arduous liquor (40% ABV) that are each charged RM1.50 (US$0.37) per diploma of alcohol.
Carlsberg Malaysia MD Stefano Clini highlighted that the brewery would proceed to help native customs and authorities efforts to curb illicit beer, but in addition warned that the excise obligation enhance is prone to each soften client demand and result in an increase in illicit alcohol exercise.
“Addressing this problem requires a balanced, collaborative method combining enforcement, consciousness and partnership between trade and authorities,” he mentioned.
Native trade analysts have additionally estimated that beer costs in Malaysia are set to rise between 3% to fifteen%, with firms nearly actually passing on the tax hikes to customers as taxes make up some 60% of beer manufacturing prices within the nation.
Conversely, tax reforms in India are poised to assist drive progress for FMCG merchandise in line with Hindustan Unilever India Ltd (HUL), with CEO and MD Priya Nair expressing sturdy optimism shifting ahead.
India tremendously simplified the construction of the Items and Companies Tax (GST) system in 2025, lowering taxation on many meals and agricultural merchandise after it shifted from a multi-slab construction (5%, 12%, 18%, 28% slabs) to a two-slab construction (5%, 18% slabs) resulting in many merchandise dropping from 12% taxation to five% taxation.
“The GST reforms are anticipated to have a optimistic impression by enhancing disposable earnings, thereby laying the bottom for stronger consumption developments,” Jain mentioned.
“HUL has already seen direct profit to 40% of our portfolio which has moved to the 5% GST slab – nearly half of our portfolio is now coated underneath this bracket.”
HUL has moved to regulate pricing for over 1,200 of its merchandise in response, passing on the advantages of this tax discount for customers to get pleasure from within the coming 12 months.
EUDR delayed but once more – ought to trade maintain its breath?
The controversial European Union Deforestation Regulation (EUDR) has been by the wringer over the previous few years, present process revision after revision in addition to delay after delay.
The preliminary 12-month delay (from December 2024 to December 2025) apart, the previous few months alone have seen a sequence of modifications inflicting immense confusion with regard to compliance – from ‘simplification’ of the regulation to the European Fee (EC) proposing a second delay till December 2026, adopted by it backtracking on this for medium to massive firms.
Lastly, on December 2025, the EC formally introduced that it was adopting a ‘focused revision’ of the EUDR aimed toward ‘simplifying its implementation’, formally suspending implementation for all operators (each SMEs and enormous MNCs) till 30 December 2026 and giving micro and small operators an additional six-month cushion interval.
However issues are usually not set in stone but – this revision now introduces one other obligation for the EC to conduct a simplification overview of the EUDR and current a report by 30 April 2026, so that’s one other deadline for trade to be careful for.
“The report ought to consider the impression and administrative burden of the EUDR, significantly for smaller operators,” mentioned the EC.
Whether or not or not this delay will assist to offer trade with extra readability and alternative for smoother implementation is but to be seen – however what is evident is that many issues are nonetheless up within the air with regard to how and when implementation will truly happen.
“The trail ahead isn’t but clear – The EC must assess whether or not it desires to make wholesale revisions [or] if it merely desires to extend capability and budgets for the implementation itself,” palm oil trade and laws professional Khalil Hegarty mentioned.
“We’ve heard options such because the non-pursuit of penalties within the early stage of the regulation, however this is able to hardly encourage companies to organize, nor wouldn’t it persuade member states to get their IT programs prepared – and crucially, the query that everybody ought to actually be asking is that this: What finish resolution goes to fulfill all the EU’s inner constituents: member states, political events and enterprise lobbies?”
Hegarty’s query is a well timed one, as a result of after the second delay was proposed in October 2025, inner divisions throughout the EU over the EUDR implementation solely received extra intense.
The proposal was led by EC Vice President Teresa Ribera, who proposed exempting solely SMEs from compliance for 12 months and suspending penalties for all for six months, and this has seen immensely various reactions to date.
As an illustration, European commerce affiliation for bulk commodities COCERAL harassed that the implementation timeline will not be the primary subject right here, however the practicality of the implementation itself as that is what nonetheless presents ‘unresolved challenges’ threatening the steadiness of soybean provide within the area.
Different teams have referred to as the EC’s plan to push ahead with a regulation solely just lately put up for simplification ‘objectively unrealistic’, whereas French paper manufacturing organisation COPACEL rounded up the controversy by saying: “It’s time for co-legislators to grasp how a lot this chaotic administration of the EUDR is discrediting EU insurance policies.”
Briefly, a second EUDR delay is now confirmed, and trade gamers together with all meals and beverage companies have extra respiratory room to organize for it – however the actual questions stay as as to whether the core points are being addressed, whether or not delaying implementation will make a distinction and whether or not the meals trade ought to be holding its breath in expectation of yet one more delay on the finish of 2026.
ANZ GM meals definition shift – bane or boon for meals sector?
August 2025 noticed Meals Requirements Australia New Zealand (FSANZ) transfer ahead with new GM meals definitions – nearly instantly riling up a number of events claiming this this weakened the excellence between ‘pure’ and modified meals.
FSANZ determined that solely merchandise with “novel DNA” might be thought of GM meals, whatever the strategies used to provide them, a choice made after two rounds of public consultations.
Which means merchandise made with elements modified through new breeding strategies (NBTs), gene-editing strategies that alter DNA in a focused method, won’t be thought of GM meals within the ANZ meals system, and therefore not require particular GM labels to be hooked up on their packaging upon sale.
“Our security evaluation confirms that many modifications achieved by NBTs are equal to these from typical breeding, which is broadly recognised as secure,” FSANZ CEO Dr Sandra Cuthbert mentioned.
In a strongly worded assertion, the Natural Shoppers Affiliation of Australia (OCAA) accused FSANZ of abandoning client rights.
It warned that the brand new guidelines might confuse customers, as some meals made utilizing NBTs would not require pre-market approval or GM labelling if no novel DNA is launched.
OCAA and different stakeholders additionally raised considerations about meals security, citing dangers resembling allergenicity, decreased diet, and antibiotic resistance.
Natural trade organisation Australian Natural Restricted (AOL) additionally warned that the brand new definitions might undermine client belief and hurt export markets.
“We strongly oppose the deregulatory course of this proposal and emphasise the necessity for stringent regulation and full transparency, together with necessary labelling of all meals produced utilizing gene expertise together with NBTs,” AOL mentioned.
FSANZ has been shifting to just accept extra GM meals into the system for a number of years now, with the record of GM meals permitted to be used in Australia and New Zealand having steadily widened to incorporate many frequent gadgets resembling bananas, canola oil, corn, potato, rice, soybeans, sugarbeet, tomatoes, wheat and extra.
Corn and soybean specifically have over 30 and 20 GM traces permitted respectively as of 2025, principally engineered to be tolerant to herbicides and/or drought circumstances, or insect-protected.
“Analysis all over the world and by FSANZ has proven that GM meals are as suitable for eating as non-GM meals – our assessments additionally make sure that these don’t trigger allergy symptoms and are as or extra nutritious than non-GM meals,” the company acknowledged.
“There are numerous different causes to make use of GM meals of which many are just like meals from cross-breeding, resembling larger crop yields, drought resistance, herbicide tolerance, illness and bug safety in addition to decreased meals waste.”
As such, FSANZ’s new definition for GM meals is clearly set to open the door for extra of such merchandise to entre the ANZ meals provide, growing client entry to those within the coming 12 months.
