The global call to realize the theme of this year’s World Social Justice Day 2026, “Renewed Commitment to Social Development and Social Justice”, resonates deeply in Indonesia. Toward this end, a recently renewed pledge between the government and employers presents a vision that aligns with global norms, including the Multinational Enterprise (MNE) Declaration of the International Labour Organization (ILO).
This pledge, which promotes responsible business conduct (RBC) and places human rights due diligence (HRDD) at its core, signals that respecting human rights at work is no longer an option in Indonesia. It is a fundamental standard. This is in keeping with the government’s plan to issue a new presidential regulation (Perpres) that will mandate HRDD for companies with more than 2,000 employees, all exporting companies and their supply chains as well as specific high-risk industrial sectors by 2028. This move aims to replace the voluntary actions previously defined under Perpres No. 60/2023 and the subsequent PRISMA platform of the Human Rights Ministry, which merely encouraged self-assessments.
However, a commitment, no matter how noble, is merely ink on paper. The true test is its real-world application. While the proposed Perpres is a promising step, significant gaps remain.
To achieve the social justice aspirations we commemorated on Feb. 20, we must address implementation challenges swiftly to ensure that the new rule becomes a true catalyst for change rather than another paper tiger.
The push for a new Perpres is not merely symbolic; it is also a response to shifting global trade dynamics. With the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) and Germany’s Supply Chain Act coming into force, mandatory human rights reporting is now a prerequisite for access to premium markets.
Furthermore, Indonesia’s aspiration to join the OECD depends on demonstrating enforceable standards for ethical business conduct. The draft regulation aims to level the playing field, balancing productivity with essential labor protections.
Yet optimism must be tempered by reality. Many local companies, particularly the small and medium enterprises (SMEs) that form the backbone of Indonesia’s economy, lack HRDD policies or functioning bipartite mechanisms. Meanwhile, practical knowledge of due diligence is low.
This raises a pressing question: Is the country ready to enforce a mandate when many businesses lack the capacity to comply?
The regulation’s success depends on stakeholder clarity, yet confusion persists. For the government, the priority must be creating an enabling ecosystem, especially as overlapping regulations create legal uncertainty that discourages participation in sustainability efforts.
Institutional roles require urgent clarification, particularly between the Manpower Ministry’s labor compliance tools and the Human Rights Ministry’s new assessment frameworks. Without clear coordination, businesses will receive conflicting signals that will ultimately undermine the regulation’s intent.
Employers also harbor legitimate concerns. They question whether HRDD is merely another compliance burden to avoid sanctions or a tool to enhance performance. Without authoritative guidance and clear incentives, there is a risk that HRDD will be framed as a bureaucratic hurdle rather than a strategic advantage.
Meanwhile, workers and trade unions remain skeptical. Past systems have allowed companies to acknowledge noncompliance, such as excessive working hours or occupational safety risks, without ensuring meaningful remediation.
However, a new dynamic is emerging: Indonesia’s 10 national confederations of labor union have united to demand a formal role in policy formulation. Globally, unions are using HRDD as a tool for organization and monitoring. Their involvement is not only principled but also practical, given their proximity to workplace realities.
To navigate these challenges, we must reject the false choice between voluntary and mandatory and instead adopt a “supported mandate”. HRDD should be compulsory, but a mandate without capacity is destined to fail.
For the government, this means investing in institutional capacity and providing technical assistance while streamlining regulations. For employers, it requires recognizing HRDD as a performance tool that opens global markets. The government should reinforce this shift with fiscal support for SMEs that demonstrate measurable progress.
For workers and unions, meaningful engagement is essential. Their role must be embedded in the HRDD framework, not only as monitors but also as partners in advocacy and remediation.
The joint commitment between government and employers is a historic step. But in the wake of the World Day of Social Justice, we must move beyond declarations. The new Perpres must establish a clear mandate, defined institutional roles and genuine space for worker participation.
With a supported mandate, HRDD can evolve from a checkbox into a compass, guiding Indonesian businesses toward a future where profitability and human dignity are two sides of the same sustainability coin.