Ministry of Human Rights Drafts Presidential Regulation on Business Compliance and Human Rights

The Ministry of Human Rights (KemenHAM) is drafting a Presidential Regulation on the Assessment of Business Compliance with Business and Human Rights to strengthen the implementation of business and human rights principles while supporting Indonesia’s accession process to become a full member of the Organization for Economic Co-operation and Development (OECD).

Deputy Minister of Human Rights Mugiyanto said in a statement in Jakarta on Thursday that the government chose a Presidential Regulation as the legal basis for implementing business compliance assessments because it is considered more effective and can be applied immediately.

“The Presidential Regulation is currently in the drafting process. We also want this regulation to be implemented soon because it is also a requirement for Indonesia to become a full member of the OECD,” he said.

According to Mugiyanto, the draft Presidential Regulation is being prepared to replace Presidential Regulation Number 60 of 2023 concerning the National Strategy on Business and Human Rights, which has expired.

The new regulation prioritises a human rights due diligence mechanism based on risk prevention, with assessments carried out objectively, transparently, accountably and based on evidence.

Through this approach, the government encourages improved compliance by business actors with respect for human rights through continuous guidance.

Representative of the United Nations (UN) Working Group on Business and Human Rights, Pichamon Yeophantong, appreciated Indonesia’s steps in drafting the regulation and assessed that the policy has the potential to become a reference for business practices that respect human rights in the Asia-Pacific region.

KemenHAM stated that the drafting of the Presidential Regulation is being carried out participatively, involving ministries and institutions, business actors, civil society organisations, business associations, and international partners to ensure effective policy implementation.