Indonesian Political, Business & Finance News

Investment Ministry Enforces Spatial Use Compliance Permits for All Business Entities

| Source: GALERT
Jakarta — Investment Minister/BKPM (Investment Coordinating Board) held a coordination meeting with the Ministry of Public Works and Public Housing (PUPR) on 19 June 2025, discussing the enforcement of PKKPR (Spatial Use Activity Conformity Approval) for all business entities.

The obligation takes effect from the first quarter of June 2025, except for sole proprietors, as stated by Rosan Perkasa Roeslani, Investment Minister/Head of BKPM.

PKKPR replaces location permits and spatial use permits for business activities, serving as a reference for regional governments in planning and controlling spatial use to increase locally generated revenue (Pendapatan Asli Daerah) across Indonesia. PKKPR serves as the basis for business operators to obtain business permits and land rights.

"The Investment Ministry/BKPM and the Ministry of Public Works and Public Housing, through the respective regional governments, may freeze business entities that commit violations under this PKKPR," said Dody Hanggodo, Minister of Public Works and Public Housing.

The enforcement of PKKPR aims to ensure compliance among business operators in order to raise legal awareness in business and contribute to strengthening the national economy.

The Investment Ministry has also urged business associations to disseminate this requirement to their members operating as limited liability companies (PT), limited partnerships (CV) and other business entities, with the exception of sole proprietorships.

The Ministry of Public Works, through PUPR offices in all regencies and municipalities across Indonesia, will continue to actively record business entities that have not yet obtained their PKKPR.
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