The Government of Indonesia and national business leaders, with support from the International Labour Organization (ILO), have reaffirmed their shared commitment to advancing Responsible Business Conduct (RBC) and the integration of human rights across business operations and supply chains through a Declaration of Joint Government-Business Commitment on Business and Human Rights. Held in Jakarta on 12 February, the signing ceremony also marked Indonesia's leadership in promoting sustainable and inclusive economic development.
The Declaration was signed by the Coordinating Minister for Economic Affairs and the Minister of Manpower, together with the Chairpersons of the Indonesian Employers' Association (APINDO) and the Indonesian Chamber of Commerce and Industry (KADIN). It reflects a shared understanding that respect for human rights and decent work is essential for sustainable enterprises, workforce development and resilient economies and supply chains.
We greatly appreciate this initiative, which is in line with Indonesia's commitment to active participation in global supply chains, while ensuring decent work and strengthening inclusive and sustainable competitiveness.
Airlangga Hartarto, Coordinating Minister for Economic Affairs
Under the four pillars of the Declaration, the Government and the business community jointly commit to:
- recognizing the importance of integrating human rights into RBC as a means to promote business productivity, a skilled workforce and sustainable economies and supply chains in the national interest;
- encouraging all businesses in Indonesia to adopt RBC in line with national policies and international standards;
- reaffirming the need for full compliance with labour laws and respect for Fundamental Principles and Rights at Work, skills development and broader decent work principles throughout business operations and supply chains; and
- supporting the development of policies, plans and actions to accelerate the uptake of RBC across all sectors, including through effective bipartite mechanisms at the workplace level to strengthen Human Rights Due Diligence (HRDD) and social dialogue.
Emphasizing the essential of integrating human rights into business practices for Indonesia's long-term economic resilience and competitiveness, Airlangga Hartarto, Coordinating Minister for Economic Affairs, stated: "The Government of Indonesia is committed to attracting investment while ensuring alignment with our national priorities. We greatly appreciate this initiative, which is in line with Indonesia's commitment to active participation in global supply chains, while ensuring decent work and strengthening inclusive and sustainable competitiveness."
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Meanwhile, Yassierli, Minister of Manpower, represented by M. Arif Hidayat, Head of Cooperation Bureau, highlighted that respect for labour rights and skills development are central to achieving decent work and inclusive growth. "Strong regulations on RBC have significantly improved compliance with labour standards and the protection of workers' rights. They also enhance social dialogue, strengthen human resources development and reinforce human rights due diligence."
RBC is an investment that requires harmonized regulations aligned with effective labour inspection mechanisms. The business community recognizes that respect for human rights supports productivity and skills development.
Shinta Widjaja Kamdani, Chairperson of APINDO
Representing the business community, Shinta Widjaja Kamdani, Chairperson of APINDO reaffirmed the private sector's commitment to responsible business practices that strengthen productivity while safeguarding workers' rights. "RBC is an investment that requires harmonized regulations aligned with effective labour inspection mechanisms. The business community recognizes that respect for human rights supports productivity and skills development."
The Declaration is supported by the ILO's Resilient, Inclusive and Sustainable Supply Chains Asia (RISSC) project in Indonesia, funded by the Government of Japan. The project aims to build more resilient, inclusive and sustainable global supply chains as an entry point and catalyst for advancing decent work, addressing human and labour rights risks and building forward better from recent global disruptions.
Simrin Singh, ILO Country Director for Indonesia and Timor-Leste, welcomed the declaration as an important milestone in advancing responsible business practices in Indonesia. "This Declaration sends a strong signal that respect for human rights and decent work is integral to sustainable business success," she said. "In addition, the ILO has supported the development of a joint positioning paper by ten Indonesian trade union confederations, as well as the establishment of a university network, thereby reinforcing the foundations for responsible business conduct that delivers lasting benefits to enterprises, workers and society as a whole."
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The event also marked the launch of a First Day Cover (FDC) on RBC and decent work. Featuring the four pillars of the Declaration, the FDC is a special envelope issued jointly by the ILO and Pos Indonesia to commemorate World Day of Social Justice on 20 February and to support the promotion and implementation of RBC and decent work in Indonesia.
To date, Indonesia has strengthened its national framework on business and human rights through policies that align economic development with international labour standards and human rights principles, guided by the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Multinational Enterprises and Social Policy, and the OECD Guidelines for Multinational Enterprises.
The launch of the Declaration is being live-streamed on ILO TV Indonesia.
