Bali Forum Hears Companies Could Face Human-Rights Sanctions From 2028

Denpasar — Human Rights Minister Natalius Pigai said companies that violate human rights could face sanctions from 2028, after a preparation period for businesses. He made the statement on Friday, Oct. 2, 2026, during the Bali-Timor Leste Business Forum 2026 at the Kura Kura Bali Special Economic Zone in Serangan, Denpasar.

The change comes as the government prepares a Presidential Regulation on Business and Human Rights. Pigai said the regulation was still awaiting the president’s signature and that companies would not be sanctioned immediately after it was issued. The government plans to begin with socialization and voluntary compliance before moving to mandatory requirements and sanctions in 2028.

Why the 2028 timetable matters to foreign businesses

For foreign companies operating in Indonesia, the proposed timetable means that human-rights compliance may become a formal business requirement rather than an immediate sanction regime. The reports describe a preparation period intended to give businesses time to understand and meet the coming standards.

The forum brought together government representatives, investors, businesses, financial institutions and other stakeholders from Indonesia and Timor-Leste. Discussions also covered trade, investment, innovation, financial cooperation and business matching.

Balipost reported that Pigai linked economic growth with respect for workers’ rights and protection against adverse effects on communities and the environment. The forum was held at Awan Auditorium 3, Tsinghua Southeast Asia Center, in the Kura Kura Bali area.

Pigai said the government was preparing a mechanism to assess business compliance with human-rights standards. The reports also state that the eventual framework could involve graduated sanctions, including warnings, limits on access to bank credit, restrictions on international financing support, revocation of operating permits and closure in accordance with the law.

The reports do not state that sanctions began on Oct. 2, 2026. They describe 2026 and 2027 as a preparation period before the proposed mandatory phase in 2028.

Sources

• detikBali — regional news organisation
• viva.co.id