BKPM Streamlines Land-Based KKPR Procedures for Micro Enterprises
The Ministry of Investment and Downstreaming/BKPM has streamlined the procedure for issuing Land-Based Business Activity Conformity Permits (KKPR) for micro-enterprises.
Businesses can now obtain Land-Based KKPR through a self-declaration mechanism on the Online Single Submission (OSS) system. This is outlined in Circular Letter No. 1.S of 2026 issued by the Minister of Investment and Downstreaming/Head of BKPM.
This policy was announced in Jakarta on Tuesday (24/2/2026). Its objective is to accelerate the legalisation of micro-businesses while still upholding spatial planning principles and local government oversight.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, emphasised that the simplification of this procedure aims to reduce the administrative steps previously considered complicated and time-consuming.
“We want micro-businesses to no longer be burdened by complicated procedures. Through self-declarations on the Online Single Submission (OSS), the process becomes faster and simpler, but remains accountable,” said Todotua in a press release.
“This is a real form of support so that small business actors can immediately operate legally and productively,” he added.
In the new mechanism, micro-business actors only need to fill in business location data through the OSS. The required data includes administrative information, complete address, land area, one coordinate point, and a photo of the front of the business location.
After the data is uploaded, business actors submit a self-declaration regarding the conformity of the business location.
With this scheme, the issuance of Land-Based KKPR becomes simpler and does not burden small business actors with layered verification.
The government affirms that spatial planning principles remain the main reference. Oversight by local governments will still be implemented for high-risk business activities to ensure compliance with applicable regulations.
Todotua also ensures that this policy provides certainty for micro-businesses that have submitted applications for Land-Based KKPR before this circular letter takes effect.