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.