Human rights due diligence and investment governance: Evidence of an emerging economy

This article examines Presidential Regulation No. 60 of 2023 on the National Strategy for Business and Human Rights as an emerging yet incomplete instrument of corporate and investment governance in Indonesia. Drawing on normative legal research and statutory, conceptual, and comparative approaches, it analyses the Regulation alongside Indonesia’s Investment Law, Company Law, and the Financial Services Authority’s (Otoritas Jasa Keuangan, OJK) sustainable finance framework. It also compares Indonesia’s approach with the United Nations Guiding Principles on Business and Human Rights (UNGPs) and the approaches adopted by Japan, Germany, France, and the European Union. The article argues that the central challenge is not simply the absence of mandatory Human Rights Due Diligence (HRDD), but also regulatory fragmentation across investment licensing, corporate governance, sustainable finance, ESG reporting, supply chains, and accountability mechanisms. It proposes reframing Presidential Regulation No. 60 of 2023 as a bridge regulation and develops a five-layer, ESG-based HRDD investment governance model encompassing investment licensing; corporate governance; sustainable finance and ESG reporting; supply-chain due diligence; and remedy and accountability. Indonesia should progressively integrate HRDD into existing regulatory instruments rather than immediately adopt a comprehensive, European-style mandatory due diligence statute.