Amid growing global pressure to uphold human rights and ensure sustainability in business practices, Indonesian enterprises face a new challenge: how to ensure that economic gains are not achieved at the expense of environmental damage or human rights violations.

Over the past five years, CRU Indonesia has recorded more than 240 land-related conflicts in the plantation and forestry sectors. Behind these numbers lie real stories of tension between companies and local communities—from disrupted access to clean water to the loss of livelihoods caused by corporate land expansion. Such conflicts not only harm communities and strain company–community relations but can also amount to human rights violations. In turn, they threaten long-term business and investment stability, as well as the positive image and competitiveness of local economies.

As global awareness grows regarding the potential human rights impacts of large-scale business operations, respect for human rights through a Human Rights Due Diligence (HRDD) approach has emerged as a new standard for corporate governance. The principle is simple yet fundamental: companies must be able to identify, prevent, mitigate, and account for adverse human rights and environmental impacts arising from their activities, and remedy the harm when violations occur. HRDD is not merely a compliance tool—it represents a new way of thinking about business sustainability.

A tangible example of this transformation can be seen in HRDD training facilitated by CRU Indonesia for a major Indonesian plantation company. Through this training, management and field staff learned how environmental issues such as water pollution or soil degradation can evolve into human rights issues when communities’ rights to health, livelihoods, and a safe environment are compromised. This process helped the company revisit its internal policies, including strengthen its grievance mechanisms, and foster more open communication style with surrounding communities.

CRU Indonesia’s approach consistently places dialogue and mediation at the heart of conflict resolution. By engaging all parties including companies, communities, and local governments in participatory processes, CRU Indonesia helps all parties find a balance between economic interests and social justice. “Conflict prevention is just as important as conflict resolution and HRDD serves as one of the key tools for conflict prevention,” noted Ginanjar Tamimy, CRU Indonesia facilitator during a training session.

However, the implementation of human rights–based policies through HRDD in Indonesia has not yet become a priority. Many companies still see it as an additional burden rather than a long-term investment. Technical capacity on the ground is limited, while national regulations have yet to fully support mandatory respect for human rights and HRDD practices. Meanwhile, global markets—particularly in Europe—are increasingly demanding transparency and compliance with human rights and environmental standards throughout supply chains.

Looking ahead, the challenge is not only to adopt HRDD-based human rights policies as administrative procedures, but to integrate them into core business strategies and quality management systems. The government needs to strengthen cross-sectoral policies and coordination in this area, while mediation institutions such as CRU Indonesia can play a vital role in building trust amid often competing interests.

Ultimately, human rights– and environment–based business governance is not merely about avoiding conflict—it is about fostering social acceptance as a foundation for a fair and inclusive and resilient economic future. As CRU Indonesia emphasizes, sustainable development cannot be achieved without respect for human rights and environmental integrity.

Photo by Max Ravier