Minister Pigai Confident Human Rights-Based Business Regulation Will Boost Investment
JAKARTA - The Indonesian government is currently drafting a regulation on business and human rights. This legislation is expected to strengthen legal certainty, encourage investment, and ensure the protection of human rights in business activities. Minister of Human Rights Natalius Pigai said on Wednesday (29/07) that the regulation is expected to prevent human rights violations whilst creating a fair, sustainable business climate that provides legal certainty.
He believes that the application of business and human rights principles is also one of the factors that can increase investor confidence and strengthen Indonesia’s position in global supply chains.
“The success of the business world in the future will no longer be measured solely by the size of profits, but also by its commitment to respecting and protecting human rights,” said Minister Pigai.
In his statement in Jakarta on Wednesday, Pigai said the regulation is also being prepared to strengthen instruments for assessing business compliance with human rights principles, thereby providing legal certainty for the business world whilst protecting the rights of communities affected by business activities.
He said sustainable economic growth must be built upon respect for human rights through corporate governance that respects the rights of workers, communities, and the environment.
Presidential Regulation
Previously, the Ministry of Human Rights confirmed it is drafting a Presidential Regulation on Business and Human Rights to improve human rights protection in business activities whilst strengthening the competitiveness of Indonesian companies and the confidence of foreign investors.
The regulation will govern mechanisms for assessing business compliance through a number of indicators that companies are required to identify and report.
The draft presidential regulation is targeted to enter the harmonisation stage shortly before being submitted to the President.
In a separate event, the Regional Office of the Ministry of Human Rights for the Bangka Belitung Islands mitigated the risk of human rights issues at plantation and palm oil processing companies in Belitung through technical guidance on the Business and Human Rights Risk Self-Assessment (PRISMA).
“Today’s activity is not only about mitigating human rights issues, but also simulating the technical process of completing the human rights due diligence in the PRISMA application,” said Syamsudin M, Head of the Human Rights Services and Compliance Division at the Bangka Belitung Regional Office of the Ministry of Human Rights, in Belitung on Tuesday.
He said the human rights risk mitigation activity and technical guidance on completing the human rights due diligence in the PRISMA application were carried out at PT Rebinmas Jaya Belitung as a follow-up to Regulation of the Minister of Human Rights of the Republic of Indonesia Number 2 of 2025.
“We coordinate and facilitate the implementation of guidance, monitoring, supervision, and control of tasks in the field of human rights services and compliance in this region,” he said.
Meanwhile, Chandra Dinata Pribadi, Director of PT Rebinmas Jaya Belitung, said the company operates in the agroindustry sector, particularly in the management of oil palm plantations and palm oil mills to produce crude palm oil (CPO) in Belitung.
“PT Rebinmas Jaya currently has approximately 2,000 permanent employees, so it is important to have human rights-based policies and activities to mitigate the risk of potential human rights issues in the field,” he said.