Indonesia may begin business human-rights sanctions in 2028, minister says

Kura Kura Bali — Indonesian Human Rights Minister Natalius Pigai said on Friday, October 2, 2026, that sanctions for companies violating human-rights standards could begin in 2028 after the government introduces a planned presidential regulation on Business and Human Rights.

Why it matters: Companies operating in Indonesia may face mandatory human-rights compliance requirements and possible sanctions from 2028 under the planned regulation.

Pigai made the statement at the Bali–Timor-Leste Business Forum 2026 at the Kura Kura Bali Special Economic Zone in Denpasar. He said the regulation was awaiting the president’s signature and that businesses would first receive time for socialisation and preparation.

According to Detik Bali, the planned sequence would begin with voluntary compliance before moving to mandatory implementation and sanctions. Pigai said companies would not be punished immediately after the regulation is issued.

Bali Post reported that the forum brought together government representatives, businesses, investors, academics, small and medium-sized enterprises and other stakeholders from Indonesia and Timor-Leste. Its agenda covered sustainable investment, trade, innovation and financial cooperation.

The forum also addressed business and human-rights principles in investment and commercial activity. Bali Post said discussions covered blue, green and gold economy themes, including maritime connectivity, sustainable tourism, environmental protection, agriculture, education and financial cooperation.

In a separate report on the event, Detik Bali said Pigai urged Indonesian and Timor-Leste businesses to align their activities with President Prabowo Subianto’s policy direction, which he said would help facilitate regulatory and government support.

The proposed regulation would therefore create a transition period before mandatory compliance and sanctions, with 2028 identified by Pigai as the possible start of penalties for businesses that violate human-rights requirements.

Sources

• Detik Bali
• Bali Post