ASIATODAY.ID, JAKARTA – The Indonesian Government and national business leaders have formally declared that respect for human rights (HR) is now a core standard for investment in Indonesia.
The commitment was sealed through a Joint Declaration on Business and Human Rights, signed in Jakarta on 12 February with the support of the International Labour Organization (ILO).
The move marks a significant shift in Indonesia’s investment policy framework: respect for human rights, decent work, and Responsible Business Conduct (RBC) are no longer optional add-ons, but central pillars of national competitiveness and sustainable economic growth.
Human Rights and Responsible Business Conduct at the Heart of Investment
The Declaration was signed by Coordinating Minister for Economic Affairs Airlangga Hartarto, Minister of Manpower Yassierli, Chair of the Indonesian Employers Association (APINDO) Shinta Widjaja Kamdani, and the Chair of the Indonesian Chamber of Commerce and Industry (KADIN).
The agreement reflects a shared understanding that respect for human rights and decent work standards strengthens workforce development, supply chain resilience, and long-term economic stability.
Coordinating Minister Airlangga Hartarto emphasized that the initiative aligns with Indonesia’s ambition to strengthen its position in global supply chains.
“The Government of Indonesia is committed to attracting investment while ensuring alignment with national priorities. This initiative guarantees decent work and strengthens inclusive and sustainable competitiveness,” he stated.
In practical terms, this signals that quality investment in Indonesia must comply with human rights principles and international labour standards.
Four Pillars of Indonesia’s Business and Human Rights Commitment
Under the Declaration, the Government and business community agreed on four strategic pillars:
1. Integrating human rights into Responsible Business Conduct (RBC) to enhance productivity, skilled workforce availability, and national supply chain resilience.
2. Encouraging all businesses operating in Indonesia to implement RBC in line with national regulations and international standards.
3. Ensuring full compliance with labour laws, including respect for Fundamental Principles and Rights at Work, skills development, and decent work across operations and supply chains.
4. Strengthening Human Rights Due Diligence (HRDD) through bipartite mechanisms and social dialogue at the enterprise level.
These pillars establish a unified national framework where business performance and human rights protection go hand in hand.
Private Sector: Human Rights as a Long-Term Investment
APINDO Chair Shinta Widjaja Kamdani underscored that the private sector views RBC as a strategic, long-term investment rather than a regulatory burden.
“Responsible Business Conduct is a long-term investment that requires regulatory harmonization and effective labour inspection mechanisms. Respect for human rights forms the foundation for productivity growth and skills development,” she said.
The message is clear: companies that uphold human rights standards are better positioned to compete globally and attract responsible investors.
ILO Support and Strengthening Global Supply Chains
The Declaration is supported by the ILO’s Resilient, Inclusive and Sustainable Supply Chains (RISSC) project in Indonesia, funded by the Government of Japan.
The initiative aims to build stronger global supply chains while advancing decent work and mitigating human rights and labour risks amid global disruptions.
Simrin Singh, ILO Country Director for Indonesia and Timor-Leste, described the Declaration as a major milestone.
“This Declaration sends a strong signal that respect for human rights and decent work is integral to sustainable business success,” she noted.
The ILO also supports the development of a joint position paper by ten Indonesian trade union confederations and the establishment of a university network to reinforce the foundations of responsible business practices nationwide.
Aligned with International Standards
Indonesia’s strengthened national framework on business and human rights is guided by:
– The UN Guiding Principles on Business and Human Rights (UNGPs)
– The ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy
– The OECD Guidelines for Multinational Enterprises
With this Declaration, Indonesia sends a firm message to global investors: the country remains open for business, but investment must align with human rights, decent work, and sustainable development principles.
From now on, investment standards in Indonesia will not be measured solely by capital inflows—but by a company’s commitment to human dignity, responsible governance, and long-term resilience. (AT Network)
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