The Indonesian government, through the Ministry of Human Rights, is currently drafting a new regulation in the form of a Presidential Regulation (Perpres) governing the integration of human rights principles into the business sector. This strategic step is taken to provide legal certainty for business actors while strengthening protection for communities and workers directly impacted by industrial activities.
Minister of Human Rights, Natalius Pigai, emphasized that the indicator of a corporation's success in the modern era is no longer measured solely by financial profitability. Going forward, a tangible commitment to respecting human values and preserving the environment will become the main benchmark for business sustainability in the country.
"Robust and sustainable economic growth must be supported by ethical business governance. This regulation is designed to minimize the potential for human rights violations and create a healthy and fair investment climate," Pigai said during a cross-sectoral forum in Bandung, West Java.
The draft regulation will contain compliance indicators that must be reported periodically by business actors. The government projects that the socialization phase of this new rule will begin in 2026, followed by the implementation of a pilot project in 2027 targeting large companies with a workforce of over 2,000 people.
Through the implementation of this policy, the government is optimistic that the reputation of local corporations in the global supply chain will be strengthened. The existence of this human rights-based business regulation is believed to be able to increase worker productivity, consumer loyalty, and most importantly, boost the confidence of foreign investors to invest in Indonesia.
