The Ministry of Human Rights (KemenHAM) is accelerating the formulation of a Presidential Regulation (Perpres) on the Assessment of Business Compliance with Human Rights. This strategic policy is targeted for completion in 2026 as part of government efforts to mitigate potential human rights violations within the Indonesian business ecosystem.
Rudy Susatyo, Middle Expert Legal Counsel at the Directorate of Human Rights Compliance, revealed that President Prabowo Subianto has given approval in principle for the draft regulation. Consequently, every business entity will be required to conduct independent due diligence via the Business and Human Rights Risk Assessment (PRISMA) application.
Once the regulation is officially enacted, the government will schedule a massive socialization campaign in 2027 before strictly enforcing the rules in 2028. The primary focus of this regulation will be large-scale companies employing more than 2,000 workers.
Nevertheless, companies with fewer than 2,000 employees are still required to use the PRISMA application as part of the government's guidance framework. This step is an implementation of the mandate of Law Number 39 of 1999, which requires the state to continuously protect and uphold human rights across all sectors, including the business world.
Currently, the Ministry of Human Rights is actively socialising the use of the PRISMA application to business operators in various regions, including the MSME sector. Through this digitalised monitoring, the government hopes to foster a more ethical business climate that upholds human dignity.
