Multinational firms above the law, say rights activists

Multinational firms above the law, say rights activists

Tertiani ZB Simanjuntak, The Jakarta Post, Jakarta

Multinational companies have the potential of abusing the
basic rights of local people in their operational areas, mostly
in the developing countries, amid the absence of a mechanism to
hold them accountable.

In a public discussion held by the National Commission on
Human Rights on the issue, rights activists pointed out that the
companies' private status had given them impunity to avoid
accountability.

Institute for Policy Research and Advocacy executive director
Ifdhal Kasim, told the discussion on Wednesday that the rights
activists still focused on the state's accountability in the
promotion and protection of the people's rights.

He said powerful multinational corporations had dominated the
world's political and economic affairs while on the other hand
the developing countries had no bargaining chips to control the
companies, making them prone to rights abuses.

Indonesian Forum for Environment executive Emmy Hafild
revealed that several reports had shown that the existence of
multinational corporations in developing countries had failed to
increase local social welfare.

"On the contrary, such companies promote collusive and corrupt
practices and also human rights violations in the operational
areas," she said.

Coal mining company PT Rio Tinto Indonesia's external
relations deputy director Anang R. Noor said that it was
impossible for any companies to ignore human rights issues as
rights abuses would only harm its operations.

"Moreover, globalization makes it impossible for someone to
evade legal proceedings," he said.

In the discussion, the activists called for a mechanism to
make the multinational corporations be accountable for any human
rights violations.

Ifdhal suggested broadening the scope of human rights laws to
cover the corporations.

He argued that the internal code of conduct established by the
companies to control their relations with their surroundings and
the employees could not be used as a mechanism to settle rights
abuses because its implementation was optional.

Tutur Suwito of the Institute for Jakarta Labor said that the
government should first determine the country's industrial
framework which included the relations between investors,
employers and employees.

"Such a framework will give the mechanism which will minimize
possibilities of rights violations," he said.