Complete Guide to Medium-Risk Business Licensing in OSS
Business licensing requires business actors to understand two main documents that often become stumbling blocks: spatial utilisation suitability and standard certificate verification. Both are regulated in Government Regulation No. 28 of 2025, which came into effect on 5 June 2025, replacing the old rules. To simplify the process, business actors can use an automatic PKKPR issuance service from the initial location determination stage. When obstacles shift to the final stage, an expedited standard certificate verification service becomes the solution to prevent commercial activities from being delayed.
Spatial Utilisation Activity Suitability (PKKPR) is one of the three basic requirements in business licensing, alongside environmental approval and building approval along with a certificate of proper function. PKKPR replaces the term location permit used before the implementation of risk-based licensing. Its function is to ensure that the planned business activity is in accordance with the local spatial plan. Without PKKPR, the application for a Business Identification Number (NIB) and subsequent permits cannot be processed. This document is valid for 3 years from the date of issuance and serves as the basis for land acquisition for business activities.
There are two types of PKKPR: Confirmation of KKPR and Approval of KKPR. Confirmation of KKPR is issued automatically by the OSS system if the business location is in an area with an integrated digital Detailed Spatial Plan (RDTR). The system will match the entered coordinates with the RDTR map and issue confirmation if they match, or reject if they do not. This process takes minutes to a maximum of 1 working day and is not subject to Non-Tax State Revenue (PNBP). If the RDTR is not yet available or not connected to OSS, the application must go through Approval of KKPR, which requires registration, examination, and document assessment. This route is subject to PNBP calculated based on land area, business type index, and location index, and involves technical land considerations and a Spatial Planning Forum review.
After the basic requirements are met, the business actor proceeds to fill in the main business activity data with a five-digit KBLI code. The OSS system automatically determines the business risk level—low, medium-low, medium-high, or high—and simultaneously sets the type of licensing required.