Ministry of UMKM Supports BKPM Issuance of Land Spatial Appropriateness Certificate for Micro Enterprises, Streamlines...
Jakarta — The Ministry of Investment and Downstream Processing/Investment Coordinating Board (BKPM) has simplified the Business Identification Number (NIB) issuance process through the Land Spatial Appropriateness Certificate (KKPR Darat) policy for micro enterprises.
The Ministry of Micro, Small, and Medium Enterprises (UMKM) supports this BKPM initiative. The simplified KKPR Darat mechanism represents an important step in accelerating business legalisation and strengthening the national UMKM ecosystem.
This was communicated by Deputy Minister of UMKM Helvi Moraza in an official statement from the UMKM Ministry on Thursday, 26 February 2026.
According to Deputy Minister Helvi, the ministry strongly supports the issuance of the NIB policy, which aims to simplify the licensing process and avoid burdening UMKM entrepreneurs.
The NIB, she noted, constitutes essential business identification for UMKM entrepreneurs to access financing, mentoring, and various government empowerment programmes.
This achievement demonstrates the high enthusiasm of UMKM entrepreneurs to transform towards the formal sector. Business legalisation is not merely an administrative obligation but rather a gateway to expand markets, increase competitiveness, and create opportunities for business growth.
Helvi stated that according to UMKM Ministry data, there are approximately 56 million micro entrepreneurs in Indonesia. However, only around 15 million currently possess NIB certification.
“This becomes our collective responsibility to collaborate in managing this significant potential. There remain tens of millions of UMKM entrepreneurs who need to be formalised and developed so they can advance and provide greater contribution to the national economy,” she added.
Therefore, she continued, the simplified KKPR Darat will make the business legalisation process increasingly straightforward, swift, and integrated, whilst remaining aligned with spatial planning regulations.
Meanwhile, Deputy Minister of Investment and Downstream Processing Todotua Pasaribu explained that his ministry has issued Circular Letter Number 1.S of 2026 from the Minister of Investment and Downstream Processing/BKPM Head on Provisions for Land Spatial Appropriateness Certificate Issuance for Micro Enterprises.
This policy, he said, streamlines previously layered procedures, making the licensing process simpler and more efficient without disregarding spatial planning principles and local government oversight functions.
“We want micro enterprises to no longer be burdened by complicated procedures. Through self-declaration in the Online Single Submission (OSS) system, the process becomes faster and simpler, yet remains responsible. This represents genuine support so UMKM entrepreneurs can promptly operate legally and productively,” Todotua added.
He confirmed that under this new mechanism, UMKM entrepreneurs need only complete business location data including administrative information, full address, land area, a single coordinate point, and a photograph of the business premises front.
“Once data is completed, UMKM entrepreneurs submit a self-declaration of business activity location appropriateness through the OSS system. This convenience still prioritises spatial planning appropriateness principles and oversight by local government, particularly for business activities with high-risk levels,” he further explained.
Collaboration between the UMKM Ministry and the Ministry of Investment and Downstream Processing/BKPM represents a concrete step in building an inclusive, orderly, and competitive business ecosystem.
Regulatory simplification does not mean reducing governance but rather ensuring regulations work to empower, not obstruct.
With increasingly accessible legalisation, UMKM entrepreneurs are expected to gain greater confidence to develop, expand operations, and become primary drivers of the national economy.
The government continues to ensure this formalisation transformation proceeds alongside mentoring and development, so Indonesian UMKM not only survives but also grows and advances.