FORMULATING HUMAN RIGHTS AUDITS FOR MULTINATIONAL COMPANIES (A CRITICISM OF REGULATORY STANDARDS FOR HUMAN RIGHTS IN BUSINESS REGULATIONS IN INDONESIA)

This article analyzes the application of human rights standards in business for multinational companies (MNCs) in Indonesian law. The primary focus is by analyzing the possibility of applying human rights audits for MNCs to ensure compliance with human rights standards in the business practices of MNCs. The application of human right standards in business in Indonesian law is by examining existing international legal regulations (guidelines), and then studying the process of transforming international law into national law. This article also criticizes normative issues in Indonesian law, which does not possess regulations regarding human rights standards in business, and thus the human rights aspect is variously interpreted in various enterprises. Further, this article will explain about the appropriate human rights audit mechanism for MNCs. This mechanism may be executed by involving the state as a regulator and auditor, as well as corporations and the people. Human rights audits are one of the ways to measure the compliance of MNCs toward applicable human rights standards. The position of human rights audits may be made equivalent to financial audits, which are an annual obligation for every corporation as well as an evaluation instrument for the people and consumers