http://www.thejakartapost.com/news/2011/11/10/mui-wary-amid-barrage-chinese-halal-food-exports.html

MUI wary amid barrage of Chinese halal food exports
The Jakarta Post | Thu, 11/10/2011 8:06 AM 
The Indonesian Ulema Council (MUI) confirms a sharp rise in halal food products 
coming from China, but it remains skeptical over China’s halal industry, which 
is presumed to still be in its developmental stages.

“The number of halal products from China has increased by 50 to 100 percent 
since last year,” MUI Food and Drug Analysis Agency (LPPOM) chief Lukmanul 
Hakim told The Jakarta Post on Wednesday.

He said that some of China’s halal food exports — which far exceeded those from 
Europe and the US — came from Ningxia, a province known for its Muslim Hui 
ethnicity.

Muslims in Ningxia account for around 38 percent of the province’s 6.3 million 
residents. The province recently announced it had developed a halal industry to 
accommodate not just the needs of Chinese Muslims but also Muslims in other 
countries.

Ningxia’s halal food commission said that the province had more than 10,000 
factories and restaurants that were certified halal.

The region’s halal industry, which is supported by a high tech laboratory, 15 
experts and 300 staffers, was currently worth up to 50 million RMB (US$7.9 
million).

The commission added that the industry had been working with foreign 
counterparts since 2008, 
cooperating on a reciprocal basis with halal institutions in Saudi Arabia, 
Qatar, Egypt and Malaysia, with Indonesia soon to join the mix.

Lukmanul acknowledged the booming development of China’s halal industry, but 
said that the 
LPPOM, acting as Indonesia’s halal certification authority, did not see itself 
engaging in any Chinese cooperation in the near future.

“They can cooperate with Malaysia and Saudi Arabia, but here we pay great 
attention to standards and human resource competency. It is not just a matter 
of issuing a certificate.”

According to Lukmanul, establishing cooperation with foreign halal institutions 
meant agreeing to the validity of their certification systems and trusting 
their assessments of products to be exported to Indonesia.

The LPPOM has so far approved the halal certification of 46 overseas 
institutions from 22 countries including the US, Australia, New Zealand, Brazil 
and the Netherlands. For all its halal exports to Indonesia, China did not make 
the list.

“We are not yet able to approve their halal certification, partly because of 
their political situation,” Lukmanul said.

He explained that the MUI had to consider China’s trade policy. He said that 
given the country’s dominance and pragmatic approach in the politics of trade, 
China could be inclined to sacrifice halal aspects in favor of economic 
efficiency.

“China knows that the [halal] market is here. They are willing to follow any 
foreign standards as long as they succeed in getting into the country. The MUI 
has to decide what is best, and, for the moment, our hearts are telling us no,” 
he said.

Lukmanul believed that China’s surge in halal product exports — including those 
to Indonesia — was more of a reflection of its economic sensibilities than its 
Muslim growth.

Therefore, the MUI decided that it was best to take on the responsibility of 
assessing Chinese halal products independently rather than leaving it up to a 
local institution.

“We have to make sure that they are really halal,” he said.

As of the first eight months of this year, Indonesia’s non-oil and gas imports 
from China reached $16.4 billion, up by 27 percent compared to last year, 
making a total trade deficit of $3.55 billion.


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