Corporate liability for the employment of Indigenous peoples in the extractive industry: A case study of PT. Sambaki Tambang Sentosa in East Halmahera

Abstract

The extractive industry often faces criticism for marginalizing indigenous communities. This study examines corporate accountability in employing indigenous labor through a case study of PT Sambaki Tambang Sentosa (STS) in East Halmahera, which integrates members of the Togutil group into its workforce. It investigates how labor rights are upheld and whether these practices align with national labor law and international human rights standards. Using a socio-legal and qualitative-descriptive approach, the study draws on interviews, observations, and document analysis. Findings show that PT STS fulfills legal obligations while adopting a transformative corporate social responsibility model, including skills training, social protection, and culturally sensitive integration. The company’s approach reflects principles of Free, Prior and Informed Consent (FPIC) and the UN Guiding Principles on Business and Human Rights (UNGPs). The study concludes by recommending replication of this inclusive model to promote indigenous labor empowerment and participatory corporate accountability within Indonesia’s extractive sector.