Government Finalizes Presidential Regulation on Human-Rights-Based Business for the OECD

The Government will soon issue a new Regulation of the President (“ Perpres ”) governing the implementation of business based on Human Rights (Hak Asasi Manusia- “ HAM ”) principles. This new regulation enables the Government, through the Ministry of HAM, to undertake preventive measures against human-rights violations in business and corporate practices.

“It is still undergoing harmonization and finalization at the Ministry of State Secretariat” said Haryo Limanseto, Spokesperson for the Coordinating Ministry for Economic Affairs, to Hukumonline.

These efforts are carried out through the issuance of corporate Human Rights standards and Human Rights Due Diligence (HRDD) obligations. Through these standards and obligations, corporations can identify, prevent, mitigate, and be accountable for how they address HAM impacts.

Moreover, the HAM practices of companies are one of Indonesia’s requirements for accession to the Organisation for Economic Co-operation and Development (“ OECD ”).

“We just need to wait, as we are currently updating the OECD on the technical review,” he added.