Indonesia delays ban on New Zealand beef

Indonesia has postponed the ban on New Zealand until certification issues could be resolved, according to Foreign Minister Hassan Wirajuda.

Indonesia had threatened to slap a ban on New Zealand beef, as the Islamic clerical body MUI no longer recognises New Zealand's halal certifications.

Wirajuda said they have to sort out their domestic difficulties, in particular the coordination of government agencies and the Ulema Council (MUI).

As such, the ban will be delayed from October until early next year, he said.

The delay would give the Indonesian government time to work out new rules and whether it recognised the New Zealand certification companies or would require certification from an Indonesian source.

The decision follows the recent re-election of President Susilo Bambang Yudhoyono, who is expected to reshuffle his cabinet.

Indonesia is the world's most populous Muslim country and all meat and dairy exports from New Zealand, worth more than US$600 million, are halal certified.

There are speculations that the non-recognition of the New Zealand certificates are inspired by Indonesian companies' desire to become the world's leading producers of halal food and beverages.

Wirajuda said Indonesia hopes to expand trade between the two countries after the signing of the ASEAN free trade deal with Australia and New Zealand.