Revisiting Indonesia halal tourism policy in light of GATS

• Date: 05 September 2024
• Pages: 154-167
• DOI: https://doi.org/10.1108/JITLP-12-2023-0064
• Published date: 05 September 2024
• Subject Matter: Strategy,International business,International business law,Economics,International economics,International trade
• Author: Neni Ruhaeni,Efik Yusdiansyah,Eka An Aqimuddin

Revisiting Indonesia halal tourism

policy in light of GATS

Neni Ruhaeni,Efik Yusdiansyah and Eka An Aqimuddin

Faculty of Law, Universitas Islam Bandung, Bandung, Indonesia

Abstract

Purpose –As a growth industry in the internationaltourism segment market, halal tourism domestic policy

should align with General Agreement on Trade in Services (GATS) as an international trade in services

regulation.This paper aims to examine Indonesia’s halal tourismpolicy and its intersection with obligationsas

a member state of the World TradeOrganization (WTO). Particularly in balancing Indonesia’s international

obligationand the right to regulate.

Design/methodology/approach –The present study uses normative legal research by analysing legal

materials, primarily GATS and Indonesia’shalal tourism policy. By using this methodology, this paper seeks

the normativeideal domestic approach that aligns with Indonesia’sinternational obligationswithin GATS.

Findings –Regional regulations primarily govern the halal tourism policy in Indonesia. The critical

substance of the regulation is the mandatory halal certif‌icationfor the implementation of halal tourism. This

obligation may be incompatiblewith Indonesia’s commitment to liberalisethe tourism sector under the GATS.

The current legal framework givesrise to a lack of consistency in its application despite its adherence to the

halal tourism standardsestablished by the MUI. At the same time, the provincial and regent authorities lacked

the authority to do so. The authors argue that halal tourism policy shallbe promulgated in the national-level

policy to settle this issue. This measure is necessary to mitigate conf‌licts between prevailing norms and

Indonesia’s internationalcommitments within GATS. Therefore, Indonesia can uphold both its international

obligationsand national interests.

Originality/value –This paper presents a novelty contributionby highlightingthe absence of prior research

examining Indonesia’sadherence to its international commitments under the GATSin formulating domestic

legislation on halal tourism. To close this gap, this study suggests that national legislation governing halal

tourism shouldconsider international obligations in the tourism sectorunder the GATS.

Keywords Tourism, Halal tourism, Indonesia, GATS, Regulation

Paper type Research paper

1. Introduction

The vast growth in internationalservice trade in 1970 gave rise to the idea of liberalising the

industry. After the f‌irst discussions in the General Agreement on Tariff and Trade (GATT)

Tokyo Round (1973–1976) and subsequent rounds of negotiations, member states f‌inally

concluded the General Agreement on Trade in Services (GATS) in December 1993. The

agreement demonstrates that not all negotiations succeed. The failure to establish an

agreement in several service sectors,such as maritime transport, shows this tendency (Fuchs,

2008). However, the ongoingGATS negotiations are a crucial and indispensable framework

for facilitating the global liberalisation of services and development mechanisms to assist

developing countries,thus promoting services and fostering collaboration (Mattooand Stern,

2008).

Authors would like to thank to The Research and Community Service Institute (LPPM) UNISBA for

support this research.

JITLP

23,2/3

154

Received2 December 2023

Revised13 July 2024

Accepted14 August 2024

Journalof International Trade Law

andPolicy

Vol.23 No. 2/3, 2024

pp. 154-167

© Emerald Publishing Limited

1477-0024

DOI 10.1108/JITLP-12-2023-0064

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