New Presidential Regulation Makes the Implementation of Human Rights in Business Mandatory

The Ministry of Human Rights (Hak Asasi Manusia – “HAM”) has affirmed its commitment to finalizing the discussion of the Draft Regulation of the President on the mandatory enforcement of HAM across all business sectors (“Rperpres”).

“In the regulation we are currently preparing, Human Rights Due Diligence will become mandatory and no longer voluntary,” said Deputy Minister of HAM, Mugiyanto, to Hukumonline.

This initiative is a follow-up to Regulation of the President No. 60 of 2023 (“Perpres 60/2023”) on the National Strategy (“Stranas”)  for Business and Human Rights (“BHAM”), which was finalized last September. The forthcoming mandatory regulation will apply to companies with at least 1,000 employees.

Under this Perpres, companies will be required to fulfill HAM indicators throughout all phases, from planning, establishment, and operations to post-operational stages. The fulfillment of HAM obligations will apply not only to employees, but also to communities affected by business activities across all business sectors.

Regarding the status of the discussion, Mugiyanto stated that the RPerpres has been submitted to the Ministry of State Secretariat for further processing. Before its enactment, the new regulation will first be socialized to all business actors.