Indonesia and Business Leaders Sign Rights-Based Supply Chain Pledge

The Government of Indonesia and the country's leading business organizations have signed a major new declaration committing to Responsible Business Conduct (RBC) and stronger human rights protections across corporate operations and supply chains.

Supported by the International Labour Organization (ILO), the agreement positions Indonesia as a regional leader in promoting sustainable, inclusive and rights-based economic growth.

The Declaration of Joint Government–Business Commitment on Business and Human Rights was signed in Jakarta on 12 February, marking a significant milestone in aligning Indonesia's development ambitions with global labour and human rights standards.

Government and Industry Unite on Business and Human Rights

The Declaration was jointly signed by:

• The Coordinating Minister for Economic Affairs

• The Minister of Manpower

• The Chairperson of the Indonesian Employers' Association (APINDO)

• The Chairperson of the Indonesian Chamber of Commerce and Industry (KADIN)

The pledge reflects a shared understanding that respect for human rights and decent work is essential for sustainable enterprises, workforce development and resilient supply chains.

"The Government of Indonesia is committed to attracting investment while ensuring alignment with our national priorities," said Coordinating Minister for Economic Affairs Airlangga Hartarto.

"We greatly appreciate this initiative… ensuring decent work and strengthening inclusive and sustainable competitiveness."

Four Pillars to Strengthen Responsible Business Conduct

Under the Declaration's four pillars, the Government and business community committed to:

• Integrating human rights into RBC to support productivity, skills development and sustainable supply chains

• Encouraging all Indonesian businesses to adopt RBC aligned with national policies and international standards

• Ensuring full compliance with labour laws and Fundamental Principles and Rights at Work throughout supply chains

• Accelerating RBC uptake across sectors through stronger workplace mechanisms, Human Rights Due Diligence (HRDD), and social dialogue

The framework aims to embed rights-based practices into the everyday functioning of enterprises, not only as compliance but as a driver of competitiveness.

Labour Rights and Skills Development Central to Inclusive Growth

Minister of Manpower Yassierli, represented by M. Arif Hidayat, stressed that labour protections and workforce skills are core to Indonesia's growth strategy.

"Strong regulations on RBC have significantly improved compliance with labour standards and the protection of workers' rights," he said.

"They also enhance social dialogue, strengthen human resources development and reinforce human rights due diligence."

Private Sector: RBC as an Investment in Productivity

The business community also reaffirmed that responsible practices strengthen long-term economic performance.

Shinta Widjaja Kamdani, Chairperson of APINDO, described RBC as a strategic investment.

"RBC is an investment that requires harmonized regulations aligned with effective labour inspection mechanisms," she said.

"The business community recognizes that respect for human rights supports productivity and skills development."

Backed by Japan-Funded ILO RISSC Project

The Declaration is supported through the ILO's Resilient, Inclusive and Sustainable Supply Chains Asia (RISSC) project in Indonesia, funded by the Government of Japan.

The project aims to help countries build stronger global supply chains by:

• Addressing labour and human rights risks

• Strengthening decent work outcomes

• Supporting recovery from global disruptions

• Improving resilience and sustainability across sectors

ILO: Strong Signal for Sustainable Business Success

Simrin Singh, ILO Country Director for Indonesia and Timor-Leste, welcomed the Declaration as a milestone.

"This Declaration sends a strong signal that respect for human rights and decent work is integral to sustainable business success," she said.

She also highlighted additional ILO support, including:

• A joint positioning paper developed by ten Indonesian trade union confederations

• The establishment of a university network to strengthen responsible business foundations

First Day Cover Launched to Mark Social Justice Day

The event also featured the launch of a commemorative First Day Cover (FDC) on RBC and decent work, issued jointly by the ILO and Pos Indonesia.

The special envelope highlights the Declaration's four pillars and marks World Day of Social Justice on 20 February, supporting broader awareness and implementation of RBC principles nationwide.

Indonesia Strengthens Global Standards Alignment

Indonesia has continued to strengthen its national business and human rights framework, guided by international standards including:

• UN Guiding Principles on Business and Human Rights

• ILO Declaration on Multinational Enterprises and Social Policy

• OECD Guidelines for Multinational Enterprises

The Declaration reinforces Indonesia's commitment to being an active participant in global supply chains while ensuring decent work, rights protection and sustainable competitiveness.