Indonesian Political, Business & Finance News

Land Use Compliance Certificate (KKPR) for Micro Enterprises Now Requires Only Self-Declaration on OSS

| | Source: RADARCIREBON.DISWAY.ID | Regulation

JAKARTA, RADARCIREBON.COM – The government has introduced a new initiative to simplify business licensing for micro-enterprises.

The Ministry of Investment and Maritime Affairs/BKPM has officially reduced the procedures for issuing Land Use Compliance Certificates (KKPR) for micro-enterprises.

Through Circular Letter of the Minister of Investment and Maritime Affairs/Head of BKPM Number 1.S Year 2026, business actors can now simply submit a self-declaration through the Online Single Submission (OSS) system to obtain a KKPR.

Deputy Minister of Investment and Maritime Affairs/Deputy Head of BKPM, Todotua Pasaribu, emphasized that this simplification aims to reduce the previously complex and time-consuming administrative process.

“We want micro-enterprises to no longer be burdened by complicated procedures. Through self-declaration on OSS, the process becomes faster and simpler, but remains accountable.”

“This is a real form of support so that small business actors can immediately engage in legal and productive business,” he said in a press release on Wednesday, February 25, 2026.

In the new mechanism, micro-enterprises only need to fill in business location data on the Online Single Submission (OSS) system.

The data that must be provided includes:

  • Administrative information about the business

  • Complete address of the business location

  • Land area

  • One coordinate point

  • Photo of the front view of the business location

With this scheme, the issuance of KKPR no longer requires multiple verification stages as before.

However, the government emphasizes that the principle of spatial planning remains the main reference. For businesses with high-risk levels, supervision by local governments will still be carried out to ensure compliance with applicable regulations.

Todotua also ensured that micro-enterprises that had previously submitted KKPR applications before the circular was issued would not be disadvantaged.

“For micro-enterprises whose applications are still in process before this Circular takes effect, we will provide the opportunity to re-apply through a simpler mechanism.”

“This is part of our commitment to ensure that no micro-enterprises are hampered by transitional policy procedures,” he said.

This step is considered important to prevent licensing stagnation due to regulatory changes while maintaining the continuity of business formalities.

Data from the Ministry of Investment and Maritime Affairs/BKPM shows that to date, as many as 14.9 million micro-enterprises have Business Identification Numbers (NIB) through the OSS system. This number is equivalent to 96.9 percent of the total NIB registered.

This achievement shows the high enthusiasm of micro-enterprises to enter the formal sector. With the simplification of the KKPR procedure, the government hopes that the business licensing process will become even more integrated and efficient.

Faster legality opens up wider opportunities for business actors to access formal financing, mentoring programs, and various other government incentives.

Ultimately, business formality is expected to increase the competitiveness of micro-enterprises in an increasingly competitive environment.

This policy is part of the risk-based business licensing reform that the government continues to implement.

Through OSS, business actors can take care of NIB, risk-based permits, and various technical approvals online without repeated administrative processes.

This platform is also integrated with ministries/agencies and local governments, so that licensing coordination becomes more efficient.

At the same time, the press release was also attended by Deputy Minister of MSMEs Helvi Yuni Moraza and Director General of Spatial Planning, Ministry of ATR/BPN, Suyus Windayana.

The government sees ease of licensing as a strategic instrument to encourage inclusive and sustainable economic growth.

With simpler procedures, micro-enterprises are expected to no longer be hampered by bureaucracy and can immediately develop legally, productively, and with high competitiveness. (*)

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Source: reportase

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