The article is a critical study of the interaction of state law and moral diversity with a case study of the Halal Product Assurance Law (Halal Act) of Indonesia. This is a distinctive case, in which constitutional requirements and religious doctrines and pluralistic social community values cross. The Halal Act in effect brushes up against the core nature of a law that balances morality with religion in a modern constitutional democracy and in effect challenges religious freedom in Indonesia as well as the issue of constitutional neutrality. This paper explores the issue of the Halal Act through legal analysis, constitutional interpretation, and sociopolitical contextualization and the author believes that the enactment of the Halal Act challenges compliance to religious freedom in the Indonesian state as well as the notion of constitutional neutrality. It highlights the way in which the law may discriminate the non-Muslim minorities, the secular communities and even the divergent interpretations in the Islamic domain as well. In the context of the constitutional pluralism framework, the study is an attempt to point out that regulation by law must contend with the complex challenges of meeting various normative orders without undermining the fundamental value of inclusion and equality of democratic practices. The paper also balances how research findings reflect on the relevance of the same in Southeast Asia in general and other multicultural countries where such issues are also a source of contention between religious laws and the rule of law. It ends up by suggesting a more consultative process of law making that embraces the plurality of law and moral ecosystem of Indonesia without interfering with the integrity of the constitution and human rights.