InfoSAWIT, JAKARTA - Palm oil is often called Indonesia's “green gold.” But in an increasingly stringent global market era, that gold could lose its shine if human rights issues are ignored. Regulations and international principles now often scrutinize whether palm businesses have truly protected workers, respected communities, and provided space for victim recovery?

Generally, business has two faces, one brings progress, the other harbors potential violations. On one side, business activities bring great benefits to society—from technology, jobs, to economic growth. However, on the other side, business practices can also cause negative impacts, especially on environmental issues, land, and workers' rights.

The National Human Rights Commission (Komnas HAM) noted that throughout 2023, public complaints related to corporate activities were still dominated by three issues, namely land disputes, labor, and environmental problems. Of all sectors, plantations are one of the most reported. This phenomenon shows that business and human rights (HAM) are two inseparable realms.

Global Principles as Reference

This challenge is not only experienced by Indonesia. In 2011, the United Nations (UN) released the United Nations Guiding Principles on Business and Human Rights (UNGPs), which became a global reference on corporate responsibility towards human rights. This document contains three main pillars.

First, the state is obligated to protect its citizens from human rights violations, whether by state apparatus or third parties, including corporations. Second, corporations have the obligation to respect human rights throughout their supply chains. Third, there are remedy mechanisms for victims of violations, either through state channels or internal company mechanisms.

Of the three pillars, business responsibility lies in the second pillar. Corporations are required to have clear policies regarding human rights respect, conduct due diligence (human rights due diligence), and provide remediation mechanisms if violations occur. (*)

For more details, read InfoSAWIT Magazine September edition.