Indonesia is advancing a draft Presidential Regulation to establish human rights-based business practices, aiming to align corporate operations with international human rights standards. The Ministry of Human Rights will oversee compliance, conducting periodic monitoring and assessments, while companies will be required to submit detailed reports on human rights fulfillment. A reward and sanction system will be applied, where full compliance earns a “green” status and violations incur sanctions, promoting accountability and responsible business conduct.
The regulation is scheduled for full implementation by 2028 and is a strategic step toward Indonesia’s accession to the Organisation for Economic Co-operation and Development (OECD). Alongside human rights compliance, Indonesia is also committed to joining the OECD Anti-Bribery Convention, signaling the country’s dedication to ethical business governance and global best practices. This initiative is expected to strengthen corporate responsibility and enhance Indonesia’s international economic standing.
