Ministry of Human Rights Finalizes Presidential Regulation on Business and Human Rights Compliance Assessment

The Ministry of Human Rights (“KemenHAM”) is finalizing a draft Presidential Regulation (“Perpres”) on the Assessment of Business and Human Rights Compliance. The proposed regulation will replace Presidential Regulation No. 60 of 2023 (“Perpres 60/2023”) on the National Strategy on Business and Human Rights (Strategi Nasional Bisnis dan Hak Asasi Manusia – “Stranas BHAM”).

"The draft Presidential Regulation has been completed and is currently undergoing the inter-ministerial harmonization process and signature approval," said Sofia Alatas, Acting Director General of Human Rights Instruments and Strengthening at the Ministry of Human Rights.

The proposed regulation will apply directly to business actors through a Human Rights Due Diligence (“HRDD”) reporting mechanism to be implemented by corporations. By establishing mandatory standards and reporting obligations, the regulation is intended to enable corporations to identify, prevent, mitigate, and account for how they address human rights impacts.