Human Rights Minister Drafts Regulation on Human Rights in Business
The government is drafting a regulation on business and human rights to strengthen legal certainty, encourage investment, and ensure human rights protection in business activities. The regulation is also being prepared to strengthen instruments for assessing business actors’ compliance with human rights principles, thereby providing legal certainty for the business world while protecting the rights of communities affected by business activities.
"The success of the business world in the future will no longer be measured solely by the size of its profits, but also by its commitment to respecting and protecting human rights," said Minister of Human Rights Natalius Pigai. He made the statement while opening the West Java Province Cross-Sectoral Synergy of Communities and Business Actors event in Bandung.
According to Pigai, sustainable economic growth must be built on respect for human rights through business governance that respects the rights of workers, communities, and the environment. He said the regulation is expected to prevent human rights violations while creating a fair, sustainable business climate that provides legal certainty.
He assessed that the implementation of business and human rights principles is also a factor that can increase investor confidence and strengthen Indonesia’s position in the global supply chain. Pigai therefore invited regional governments, academia, communities, and civil society to strengthen collaboration in implementing business and human rights principles so that economic development proceeds in harmony with respect for human rights.
The Ministry of Human Rights previously confirmed it is drafting a Presidential Regulation on Business and Human Rights to enhance human rights protection in business activities while strengthening the competitiveness of Indonesian companies and foreign investor confidence. The regulation will govern the mechanism for assessing business actors’ compliance through a number of indicators that companies must identify and report. The draft regulation is targeted to soon enter the harmonisation stage before being submitted to the President. The government plans to conduct socialisation in 2026 and a pilot project in 2027 for companies with more than 2,000 workers. The implementation of responsible business principles is considered capable of increasing worker productivity, corporate reputation, consumer loyalty, as well as market value and business revenue.