Dusun Semilir Villa Permits Stalled by Regulatory and Online System Hurdles
UNGARAN – The licensing controversy surrounding dozens of villa buildings at The Villas within the Dusun Semilir (Dusem) tourism complex in Bawen, Semarang Regency, has drawn public attention. The Dusem management has stated that the permit process for villa construction in their area has been initiated but remains hampered by regulatory issues.
Dusun Semilir's Legal and QA Manager, Shenita Dwiyansany, explained that the villa permits were initially submitted through the Online Single Submission (OSS) system in 2021 under the Indonesian Standard Industrial Classification (KBLI) category for villas. However, the system rejected the application because villas were categorised as private residences, whereas Dusun The Villas operates as lodging facilities within a commercial area.
"The Central Java Provincial Investment and One-Stop Integrated Services Office (DPMPTSP), together with the Tourism, Public Works and Spatial Planning, and Environment agencies, then proposed changing the Business Identification Number (NIB) classification to a starred hotel. We followed that guidance even though our concept is essentially villas — it was a matter of regulatory adjustment," Shenita explained.
She further clarified that the directive to change the NIB arose because villa regulations fall under the Micro, Small and Medium Enterprise (MSME) category, whereas the business developed by Dusem's management involves substantial assets.
"We agreed, and there is a recommendation letter from Semarang Regency's DPMPTSP to issue the permit, changing it from villa to hotel classification due to the regulatory constraints. But to this day it still cannot be entered into the OSS system," she said.
Shenita explained that the OSS issues relate to the Spatial Utilisation Activity Conformity Approval (PKKPR) map and misperceptions regarding the permits. The OSS application for The Villas' construction has from the outset utilised approximately two hectares of Dusem's total area of around 12.4 hectares. The overall Dusem site, based on spatial planning zoning, is divided into two zones: 8.4 per cent is designated as a green zone, and four hectares constitute a yellow zone (horticulture). The villa construction site spans both zones, with 39 of the 62 villa units located in the green zone.
"Under Ministerial Regulation Number 5 of 2021, villa construction on green land is permitted within a threshold of 30 to 70 per cent. The buildings at The Villas are well below the stipulated threshold," she explained.
Shenita added that although permits are still being processed, Dusem continues to comply with tax obligations and remains committed to completing all supporting permits in stages.
"The permit process is still ongoing, but we continue to pay hotel and restaurant taxes. In fact, Dusun Semilir is the largest taxpayer, as recognised by an award we received from the Semarang Regency Government," she said.
The management has also filed a judicial review of the regulations applicable to their business, which they consider insufficiently relevant to conditions on the ground, given that the project was conceived as a villa development from the outset.
"We already hold permits, but the supporting permits are still in process. So it does not mean we have no permits at all. The issue of being unable to enter the OSS system is something we will resolve with the relevant agencies, and we have already filed a judicial review," she affirmed.
Dusun Semilir's Legal and QA Manager, Shenita Dwiyansany, explained that the villa permits were initially submitted through the Online Single Submission (OSS) system in 2021 under the Indonesian Standard Industrial Classification (KBLI) category for villas. However, the system rejected the application because villas were categorised as private residences, whereas Dusun The Villas operates as lodging facilities within a commercial area.
"The Central Java Provincial Investment and One-Stop Integrated Services Office (DPMPTSP), together with the Tourism, Public Works and Spatial Planning, and Environment agencies, then proposed changing the Business Identification Number (NIB) classification to a starred hotel. We followed that guidance even though our concept is essentially villas — it was a matter of regulatory adjustment," Shenita explained.
She further clarified that the directive to change the NIB arose because villa regulations fall under the Micro, Small and Medium Enterprise (MSME) category, whereas the business developed by Dusem's management involves substantial assets.
"We agreed, and there is a recommendation letter from Semarang Regency's DPMPTSP to issue the permit, changing it from villa to hotel classification due to the regulatory constraints. But to this day it still cannot be entered into the OSS system," she said.
Shenita explained that the OSS issues relate to the Spatial Utilisation Activity Conformity Approval (PKKPR) map and misperceptions regarding the permits. The OSS application for The Villas' construction has from the outset utilised approximately two hectares of Dusem's total area of around 12.4 hectares. The overall Dusem site, based on spatial planning zoning, is divided into two zones: 8.4 per cent is designated as a green zone, and four hectares constitute a yellow zone (horticulture). The villa construction site spans both zones, with 39 of the 62 villa units located in the green zone.
"Under Ministerial Regulation Number 5 of 2021, villa construction on green land is permitted within a threshold of 30 to 70 per cent. The buildings at The Villas are well below the stipulated threshold," she explained.
Shenita added that although permits are still being processed, Dusem continues to comply with tax obligations and remains committed to completing all supporting permits in stages.
"The permit process is still ongoing, but we continue to pay hotel and restaurant taxes. In fact, Dusun Semilir is the largest taxpayer, as recognised by an award we received from the Semarang Regency Government," she said.
The management has also filed a judicial review of the regulations applicable to their business, which they consider insufficiently relevant to conditions on the ground, given that the project was conceived as a villa development from the outset.
"We already hold permits, but the supporting permits are still in process. So it does not mean we have no permits at all. The issue of being unable to enter the OSS system is something we will resolve with the relevant agencies, and we have already filed a judicial review," she affirmed.