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Indonesia’s regulatory landscape on Business and Human Rights (BHR) is entering a decisive phase. The UN Guiding Principles on Business and Human Rights (UNGPs) which require companies to conduct ongoing human rights due diligence have long served as the global benchmark for responsible business conduct. In Indonesia, this framework gained formal traction with the issuance of Presidential Regulation No. 60/2023 on the National Strategy on Business and Human Rights (Stranas BHAM). Although conceived as a roadmap for state institutions and businesses to embed human rights into daily operations, its implementation has been uneven, revealing persistent gaps between policy ambition and on‑the‑ground practice.

 

As Perpres 60/2023 approaches its regulatory sunset in 2025, the Ministry of Law and Human Rights introduced Ministerial Circular MHA‑01/2025 to maintain continuity. This circular provides interim guidance for assessing corporate compliance while the government finalises a new Presidential Regulation on mandatory HRDD. In parallel, the government has strengthened its institutional tools through PRISMA, a self‑assessment platform managed by the Directorate General of Human Rights Compliance. PRISMA evaluates companies across twelve indicators—from labour conditions and privacy to environmental impacts and indigenous rights—producing a numerical score categorised as Green, Yellow, or Red. For many companies, this score is becoming a reputational signal that investors, communities, and regulators increasingly pay attention to.

 

The government has also announced its intention to introduce mandatory human rights due diligence (mHRDD) by 2027, aligning Indonesia with global regulatory trends seen in the EU, Germany, Norway, and Japan. This shift marks a transition from voluntary commitments to enforceable expectations. Companies will be required not only to identify and mitigate risks but also to demonstrate how they prevent, address, and remedy human rights impacts across their value chains. Early compliance—through structured assessments, policy strengthening, and supply‑chain mapping—will be critical for businesses seeking to avoid regulatory penalties and maintain competitiveness in ESG‑driven markets.

For companies operating in high‑risk sectors such as mining, manufacturing, logistics, and agribusiness, the implications are significant. PRISMA results will increasingly influence public perception, investor confidence, and government scrutiny. More importantly, they will shape how companies are evaluated in the context of Indonesia’s broader sustainability agenda. Businesses that proactively adopt HRDD practices today will be better positioned to navigate the upcoming regulatory shift, reduce operational disruptions, and build trust with workers, communities, and international partners.

 

Our firm supports companies in meeting these evolving expectations by delivering comprehensive Human Rights Due Diligence (HRDD) services grounded in international standards and tailored to Indonesia’s regulatory trajectory. Through policy reviews, risk assessments, stakeholder analysis, and value‑chain mapping, we help companies move beyond compliance toward responsible, resilient, and future‑ready operations. As Indonesia prepares for mHRDD, early adopters will not only minimise risk—they will define the benchmark for responsible business in the years ahead.