The Ministry of Human Rights (“Ministry of Human Rights”) has issued the Circular Letter of the Minister of Human Rights No. M.HA-01.HA.03.02 of 2025 on Assessment of Business and Human Rights Compliance for Business Actors, which came into effect on the date of its issuance, namely 25 August 2025. Through this circular letter, the Ministry of Human Rights, via the Directorate General of Human Rights Services and Compliance (Ditjen PDK HAM), urges business actors to complete a self-assessment form through the Business and Human Rights Risk Assessment Application (PRISMA), accessible via http://prisma.kemenham.go.id.

 

Background

The PRISMA self-assessment system represents Indonesia’s implementation of the United Nations Guiding Principles on Business and Human Rights (UNGP), as set out in UN Human Rights Council Resolution No. 17/4 of 2011, to ensure that business practices do not violate human rights. PRISMA supports this objective by providing an early-stage risk analysis tool as part of human rights due diligence for business entities. Prior to PRISMA, there was previously an absence of a proper due diligence mechanism for business actors in Indonesia.

Is the use of PRISMA currently mandatory for all business actors in Indonesia?

Not yet mandatory, but strongly advisable.

As stated in Section II on Objectives and Benefits of Circular Letter No. MHA-01.HA.03.02 of 2025, the completion and submission of the PRISMA self-assessment form by business actors in Indonesia (including private companies and state-owned/region-owned enterprises) is advisory in nature and is not yet mandatory.

 Furthermore, the Frequently Asked Questions (FAQ) page of PRISMA clarifies that one of the assessment indicators provided by PRISMA is voluntary, as follows:

“Voluntary means that every company is free to use PRISMA; To date, there is not yet an obligation to use PRISMA.”

Nonetheless, each company and its supply chain are strongly encouraged to use PRISMA due to the following benefits:

1. PRISMA assists companies and their supply chains in analysing risks of human rights violations arising from their business activities in Indonesia, and in preventing and mitigating such risks;
2. Companies can build a positive public image as human rights–based enterprises;
3. PRISMA certification may serve as a supporting consideration for companies when promoting themselves to potential investors;
4. PRISMA strengthens other assessment mechanisms and serves as official state recognition of the company’s fulfilment of human rights standards.

PRISMA Self-assessment Procedure and Output for Business Actors

There are two (2) PRISMA submission periods each year: (1) January to March, and (2) July to August, followed by a verification period. Verification is conducted through two (2) methods: online verification of submitted data and/or an on-site review at the company by a verification team consisting of Ministry of Human Rights officials.

For business actors, the steps are as follows: After registering an account and completing the company profile on <https://prisma.kemenham.go.id>, you may proceed to answer the questions provided in the PRISMA system. PRISMA consists of 12 categories: Human Rights Impacts on the Company, Human Rights Policies, Grievance Mechanisms, Supply Chain, Workforce, Working Conditions, Labour Unions, Non-Discrimination, Privacy, Environment, Agrarian Issues and Indigenous Peoples, and Corporate Social and Environmental Responsibility (CSR).

The results of your company’s business and human rights risk assessment will be scored and categorized into three (3) levels: Not Adequate (0–55), Adequate (56–75), and Compliant (76–100). Business actors achieving the “compliant” category will receive an award certificate from the Minister of Human Rights, valid for one year. Meanwhile, those categorized as “adequate” will be given the opportunity to improve their documentation.

Concluding Remarks

Through the Ministry of Human Rights’ advisory call for self-assessment via PRISMA, Indonesian business actors have the opportunity to demonstrate their commitment to human rights-respecting business practices while enhancing their reputation with investors and the public. Although voluntary in nature, this self-assessment system is expected to be an important mechanism as an indicator in its strategic role to mitigate risks and thereby strengthening the market confidence in the integrity of Indonesian business practices.

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