Indonesia Preps Human Rights-Based Business Regulations for OECD Entry

5 hours ago 3

December 9, 2025 | 10:57 am

TEMPO.COJakarta - The Ministry of Human Rights is proposing a new draft Presidential Regulation (Perpres) that establishes guidelines for human rights-based business practices. This new regulation is being developed to serve as the benchmark for assessing and supervising business activities to ensure they meet international human rights standards.

Human Rights Minister Natalius Pigai confirmed that the draft regulation is complete. "The draft has reached the Minister of State Secretariat," Natalius stated on Monday, December 8, 2025.

Natalius further explained that the draft is currently with the Coordinating Minister for Economic Affairs, Airlangga Hartarto. The government has tasked Minister Hartarto with discussing the proposed regulations with business actors before proceeding to the finalization stage.

According to Natalius, the new regulation will provide the foundational authority for the Ministry of Human Rights to oversee corporate activities. "We will conduct periodic monitoring and assessments of companies," Natalius noted.

He outlined that the regulation will mandate every company to submit reports to the Ministry of Human Rights detailing the fulfillment of human rights indicators within their operations.

The Ministry will evaluate these reports using a reward and punishment system. "A 'green' result means good compliance. However, if violations occur, the company will be subject to sanctions," Natalius explained.

Timeline and OECD Membership

Natalius hopes this regulation will be finalized and fully implemented by 2028. "The implementation of human rights-based business, which is mandatory, must be carried out in 2028," he emphasized.

He stressed that this regulation is crucial because corporate compliance with human rights aspects is one of Indonesia's key requirements for joining the Organisation for Economic Co-operation and Development (OECD).

Coordinating Minister Airlangga Hartarto previously stated that Indonesia must also participate in the OECD Anti-Bribery Convention to be accepted as a member. He mentioned that the government has already submitted a letter from the Chairman of the Corruption Eradication Commission (KPK) expressing commitment to joining the anti-bribery convention.

Alfitria Nefi P contributed to the report

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