In a significant move to champion human rights in Indonesia, particularly within the business landscape, the government has officially approved Presidential Regulation Number 60 of 2023, outlining the National Business and Human Rights Strategy. This strategic document serves as a compass for businesses, encouraging them to actively participate in the promotion and adherence to human rights principles within their operations. Beyond its role as a guide for businesses, this national strategy has the potential to be a powerful instrument, bolstering the overall business and investment environment in Indonesia.
The National Business and Human Rights Strategy (NBHRS) stands as a critical document, articulating policy directions and national strategies aimed at fostering businesses that prioritize and respect human rights. It is structured on fundamental principles of non-discrimination, equality, participation, accountability, and transparency, quoted from Coordinating Ministry for Economic Affairs Republic of Indonesia’s website.
Within the comprehensive framework of NBHRS, three primary strategies are delineated: firstly, enhancing comprehension, capacity, and promotion of the intersection between business and human rights; secondly, developing regulations, policies, and guidelines that support and fortify the protection of human rights; and thirdly, fortifying mechanisms for effective recovery.
This strategic document not only provides practical and detailed guidelines for both central and local governments but also underscores the imperative to prioritize human rights in the business domain.
Furthermore, the unveiling of NBHRS signifies the commencement of a prolonged governmental commitment towards advancing human rights within the business context. Presently, the Ministry of Law and Human Rights is actively working on derivative regulations stemming from the Presidential Regulation on NBHRS, with a specific focus on outlining the working mechanisms of both the National and Regional Task Forces on Business and Human Rights.
National Business and Human Rights Strategy: A Stepping Stone to Development
As Indonesia aspires to attain the status of a high-income nation and extricate itself from the middle-income trap, there is an inherent need to elevate per capita income to USD13,845 by the year 2040. To propel this ambitious goal, the government is intensifying efforts to optimize demographic dividends and enhance both business certainty and the overall business climate.
Additionally, the government has undertaken significant strides in implementing structural economic reforms to steer clear of the middle-income trap, exemplified by the enactment of Law Number 6 of 2023, which validates Government Regulation in Lieu of Law Number 2 of 2022 concerning Job Creation (Omnibus Law).
These endeavors serve as the linchpin for improving technological capabilities, fostering innovation, solidifying business certainty, and fostering a conducive investment climate through the refinement of legislative quality and associated regulations.
Speaking virtually during the launch of Presidential Regulation Number 60 of 2023 on the National Business and Human Rights Strategy (NBHRS), Coordinating Minister for Economic Affairs Airlangga Hartarto highlighted the significance of these efforts and their pivotal role in creating a robust foundation for sustainable development.
With the formal introduction of this national strategy, businesses now have a comprehensive guide to actively engage in the promotion and adherence to human rights principles within their operational frameworks. Importantly, this strategy stands poised to become a potent instrument, actively contributing to the overall enhancement of the business and investment landscape in Indonesia.
“At the global level, Indonesia’s NBHRS is distinguished as the world’s first national business and human rights action plan, officially sanctioned through a presidential regulation within a regulatory policy framework,” emphasized Coordinating Minister Airlangga.
Insights into the National Business and Human Rights Strategy
The NBHRS, with its three main strategies, not only provides a roadmap for businesses but also reinforces the national commitment to upholding human rights. Firstly, it emphasizes the importance of enhancing understanding, capacity, and promotion of the symbiotic relationship between business and human rights. Secondly, it underlines the necessity of developing regulations, policies, and guidelines that actively support the protection and adherence to human rights. Lastly, it advocates for the strengthening of mechanisms for effective recovery in cases where human rights may be compromised.
“One of the mandates within the NBHRS is the establishment of Task Forces at both the national and regional levels. I extend my congratulations on the formation of the National Business and Human Rights Task Force, recently inaugurated. I also urge local governments to promptly establish and confirm their Regional Business and Human Rights Task Forces,” Airlangga added.
Airlangga further emphasized that alongside the focus on human rights, equal attention should be given to the implementation of public services for vulnerable groups, such as the elderly, disabled individuals, children, pregnant, and breastfeeding women.
In alignment with this overarching commitment to human rights, the Ministry of Law and Human Rights (Kemenkumham) has established criteria and indicators for the Human Rights-Based Public Service Assessment, ensuring that government units provide services in accordance with human rights principles.
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