Letter to the OECD Working Party on Responsible Business Conduct Concerning Its Technical Review of Indonesia

The document argues that Indonesia's legal framework fails to align with OECD Guidelines on Responsible Business Conduct, specifically regarding the recognition of Indigenous Peoples' land rights and the requirement for free, prior, and informed consent (FPIC). It highlights how 'national strategic projects' and the 'Omnibus Law' facilitate investment at the expense of human rights, often supported by military deployment. The coalition recommends that the OECD demand a timeline for the Indigenous Peoples’ Rights Bill, accelerated land recognition, and the cessation of military involvement in development projects.

• Indonesia lacks a comprehensive national law to protect Indigenous Peoples' rights, leaving communities to navigate inconsistent regulations. While the 'Customary Law Communities Bill' was renamed the 'Indigenous Peoples Bill', there is no clear timeline for its ratification.
• The process for recognizing Indigenous land rights is hindered by a requirement for local government affirmation, which is subject to discretionary power. As of November 2025, only 169 out of 552 subnational government entities had recognized Indigenous communities.
• The Indonesian government's commitment to recognize 1.4 million hectares of customary forest by 2029 is criticized for lacking transparency and being geographically concentrated, with 73.7% of the target located in North Kalimantan.
• Indonesian law does not adequately guarantee the right to free, prior, and informed consent (FPIC). Existing laws in the plantation and mining sectors either assume recognized status or frame land settlements as 'compensation' rather than requiring FPIC before operations begin.
• The 'Omnibus Law' (Job Creation Law) facilitates investment by easing permitting for 'national strategic projects' (PSNs), which can lead to forced displacement and weakened environmental and social impact assessments.
• Large-scale infrastructure and energy projects have led to human rights violations. Examples include the new capital city (IKN) in East Kalimantan and a biomass power plant in West Papua funded by the Indonesian Environment Fund, which reportedly caused malnutrition and death among Marind children.
• The Indonesian government has increasingly deployed the military to support development projects and suppress protests, such as the use of force against community protests against a geothermal power plant in Poco Leok, Flores.

APA

Trend Asia (2026). Letter to the OECD Working Party on Responsible Business Conduct Concerning Its Technical Review of Indonesia. https://trendasia.org/wp-content/uploads/2026/06/Letter_to_OECD_WP_2026.05_with_signatories.pdf

Chicago

Trend Asia. Letter to the OECD Working Party on Responsible Business Conduct Concerning Its Technical Review of Indonesia. 2026. https://trendasia.org/wp-content/uploads/2026/06/Letter_to_OECD_WP_2026.05_with_signatories.pdf.

Wikipedia

{{cite press release |author=Trend Asia |title=Letter to the OECD Working Party on Responsible Business Conduct Concerning Its Technical Review of Indonesia |date=May 2026 |url=https://trendasia.org/wp-content/uploads/2026/06/Letter_to_OECD_WP_2026.05_with_signatories.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{trendasia2026letter, author = {{Trend Asia}}, title = {{Letter to the OECD Working Party on Responsible Business Conduct Concerning Its Technical Review of Indonesia}}, publisher = {Trend Asia}, year = {2026}, month = may, url = {https://trendasia.org/wp-content/uploads/2026/06/Letter_to_OECD_WP_2026.05_with_signatories.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }