Indonesian Political, Business & Finance News

BKPM Streamlines Land Use Permits for Micro-enterprises

| | Source: SUARA.COM | Regulation
  • The Ministry of Investment/BKPM has issued Circular Letter No. 1.S of 2026, simplifying the procedure for Land Use Conformity Permits (KKPR) for micro-enterprises.
  • The processing of Land Use Conformity Permits is now automated through a self-declaration on the Online Single Submission (OSS) system.
  • This simplification aims to support the legality of micro-enterprises without neglecting regional spatial planning oversight. Suara.com - The Ministry of Investment and Downstreaming/BKPM has officially issued a circular letter to streamline the procedure for issuing Land Use Conformity Permits (KKPR) for micro-enterprises. The streamlining of the procedure is outlined in Circular Letter of the Minister of Investment and Downstreaming/Head of BKPM No. 1.S of 2026 concerning the Provisions for Issuing Land Use Conformity Permits (KKPR) for micro-enterprises. Through this circular letter, the processing procedure has become simpler, faster, and less burdensome for small business actors, without neglecting the principles of spatial planning and government oversight. “We want micro-enterprises to no longer be burdened by complicated procedures. Through a self-declaration on the Online Single Submission (OSS), the process becomes faster and simpler, but remains accountable,” said Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, during a press conference at his office on Wednesday (25 June 2025). He added that this is a form of real support to enable small business actors to operate legally and productively as soon as possible. Through this policy, the issuance of Land Use Conformity Permits for micro-enterprises can be carried out automatically through a self-declaration on the OSS system. Business actors only need to input data on the location, coordinates, and a front view photo of their business into the OSS system and then submit the self-declaration directly. Although the procedure has been streamlined, the aspect of spatial planning conformity remains strictly maintained, especially through regional government oversight for high-risk businesses. According to BKPM records, 14.9 million micro-enterprises have a Business Identification Number (NIB) on the OSS system. This number represents 96.9 percent of the total number of registered NIBs. “For micro-enterprises whose applications are still in process before this Circular Letter takes effect, we will provide an opportunity to re-apply through a simpler mechanism. This is part of our commitment to ensure that no micro-enterprises are hindered by the transitional policy procedures,” said Todotua.
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