Indonesian Political, Business & Finance News

Business Actors Must Understand: This is the KKPR Process Before Developing Business

| | Source: M.MEDIAINDONESIANEWS.COM Translated from Indonesian | Regulation
Business Actors Must Understand: This is the KKPR Process Before Developing Business
Image: M.MEDIAINDONESIANEWS.COM

Business actors seeking to expand their operations across various sectors are required to understand the process for obtaining Spatial Utilisation Activity Compliance (KKPR) as one of the basic requirements in business licensing. The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) stresses that KKPR ensures every business activity operates in accordance with the spatial planning established in a given area, allowing development to proceed in an orderly and sustainable manner. Provisions regarding KKPR are regulated under Government Regulation No. 21 of 2021 and detailed in Ministerial Regulation No. 13 of 2021. These regulations serve as the legal foundation for controlling spatial utilisation to prevent land use conflicts. In practice, KKPR applications are submitted online through the nationally integrated Online Single Submission (OSS) system. Through this platform, business actors submit requests by completing data on their business activity plans. Essential information to prepare includes the Business Identification Number (NIB), type and scale of business, activity location with coordinates, area of land to be utilised, and land ownership status or acquisition plans. This data forms the basis for assessing compliance with the Regional Spatial Plan (RTRW) or Detailed Spatial Plan (RDTR). After submission, the relevant authorities conduct examinations and evaluations. If the location has an RDTR integrated with OSS, the system can provide automatic compliance confirmation. However, if not yet integrated, the application undergoes further review until KKPR approval is issued. During implementation, Provincial BPN Regional Offices and local Land Offices conduct verifications and technical assessments for applications requiring deeper analysis. This process aims to ensure the business location is not in protected areas, does not violate spatial designations, and does not cause land use conflicts. If all stages are fulfilled and deemed compliant with spatial planning, the KKPR document is issued electronically. The government hopes that a solid understanding of this procedure will help business actors plan investments more confidently while supporting orderly and sustainable spatial management.

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