This article seeks to explain the politics of 'halal' and its connection to the model of ongoing 'shariatisation' through an investigation of the institutionalisation of shariatisation of goods in Indonesia. It illustrates the historical steps of 'halal' institutionalisation in Indonesia, from the issuance of early fatwas on 'halal' to the establishment of a state 'halal' body. It assesses a contest between the two models of shariatisation: first, state-enforced shariatisation, epitomised by the Ministry of Religious Affairs; and second, community-enforced shariatisation, epitomised by Council of Indonesian Ulama. This article argues that contest between the state and society over the shariatisation of goods in Indonesia is part of a dynamic process towards shariatisation. The shariatisation of goods is not merely about politics and theology but also involves lifestyle and commodification issues. I conclude that shariatisation that begins as cultural shariatisation has more sustainability and legitimacy than 'structural', that is, state-imposed, shariatisation.