KKPR is a breakthrough in simplifying business licensing requirements as mandated in Law Number 6 of 2023 concerning the Stipulation of Government Regulation instead of Law Number 2 of 2022 concerning Job Creation (” Ciptaker Law ”) which amends Law Number 26 of 2007 concerning Spatial Planning. The changes to the spatial planning regulations include those related to the fulfillment of business licensing which was previously referred to as “Location Permit”, now changed to “Suitability of Spatial Utilization Activities” (“ KKPR ”).
This KKPR has two main functions, namely as a reference for space utilization and a reference for land administration. To fulfill Business Licensing submitted through the Online Single Submission (“ OSS ”) system, the KKPR is part of Business Licensing as referred to in Article 14 paragraph (6) of the Job Creation Law which reads as follows:
Article 14
Section (6)
“After obtaining confirmation of the suitability of the spatial utilization activities as referred to in paragraph (5), the Business Actor shall apply for a Business License.”
Based on the descriptions of the provisions above, the KKPR is part of the business licensing requirements that must be owned by Business Actors before carrying out their business activities. The issuance of the KKPR is the authority of the duties and functions of the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency.
In terms of managing business permits, Business Actors are required to ensure that the location or place of their business is by the designated area as regulated in Article 17 number 29 of the Job Creation Law, which reads as follows:
29. The provisions of Article 61 are amended to read as follows:
Article 61
In the Utilization of Space, every person is obliged to:
- comply with the established Spatial Planning Plan;
- utilize space by the spatial plan;
- comply with the provisions set out in the requirements for the Suitability of Spatial Utilization Activities; and
- provide access to areas that are declared as public property by statutory provisions.
The division of business location criteria can also be referred to as zoning regulations which are part of the RDTR regulated by the district/city government. For example, regional regulations governing zoning regulations are contained in Article 87 of the Regulation of the Governor of the Special Capital Region of Jakarta Number 31 of 2022 concerning the Detailed Spatial Planning Plan for the Special Capital Region of Jakarta Province which reads as follows:
Article 87
Section (1)
Cultivation zones as referred to in Article 85 paragraph (2) letter b, consisting of:
a. Road body zone with Zone code BJ;
b. Agricultural zone with Zone code P;
c. Fisheries zone with Zone code IK;
d. Power generation zone with PTL Zone code;
e. Industrial area zone with Zone code KPI;
f. Residential zone with Zone code R;
g. Public service facility zone with Zone code SPU;
h. Trade and service zone with Zone code K;
i. Office zone with Zone code KT;
j. Transportation zone with zone code TR;
k. Defense and security zone with the code HK Zone;
i. Tourism zone with Zone codes W; and
m. Production forest zone with the HP Zone code.
In the implementation of the above regulation, business actors cannot apply for KKPR for tourism business activities in the industrial zone. So before preparing business activities, Business Actors must adjust their location or place of business with the spatial planning regulated by the government.
After the business actor knows that his business activities are by the zoning regulations in the RDTR, the business actor can submit a PR application through the OSS system as referred to in Article 6 paragraph (1) of the Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency of the Republic of Indonesia Number 13 of 2021 concerning the Implementation of Compliance with Spatial Utilization Activities and Synchronization of Spatial Utilization Programs (” PERMEN ATR/BPN 13/2021 “) which reads as follows:
Article 6
KPI for business activities as referred to in Article 5 paragraph (1) letter a is granted based on the suitability of the planned location of the Spatial Utilization activity with the RDTR which has been integrated with the OSS System.
The KPI application is made through the OSS system by including the following:
- location coordinates;
- land area requirements for Space Utilization activities;
- land ownership information;
- business type information;
- planned number of floors of the building; and
- floor plan of the building.
Next, the OSS system will assess the KKKPR application, and if it meets the requirements, the OSS system will issue a decision approving the KKKPR.
If there is no RDTR at the location of the business activity in question, the Business Actor can submit a PKKPR as referred to in Article 10 paragraph (1) of PERMEN ATR/BPN 13/2021 which reads as follows:
Article 10
Section (1)
PKKPR for business activities as referred to in Article 5 paragraph (1) letter b is given if in the planned location of the Spatial Utilization activity:
a. RDTR is not yet available; or
b. The available RDTR has not been integrated into the OSS System.
The PKKPR application is submitted to the Minister of ATR/KBPN through the OSS system based on the activity proposal document which contains the following:
- location coordinates;
- land area requirements for Space Utilization activities;
- land ownership information;
- business type information;
- planned number of floors of the building;
- building floor plan; and
- technical building plan and/or area master plan.
Furthermore, the Minister of ATR/KBPN through the Director General of Spatial Planning will assess the PKKPR application, and if it meets the requirements, a decision will be issued approving the PKKPR through the OSS system.
In addition to having a KKPR, business actors must also carry out land acquisition activities at the location of their business activities because the KKPR is not a land right, so the party submitting the KKPR application must obtain land before submitting the KKPR application or carry out land acquisition after the issuance of the KKPR as referred to in Article 17 paragraph (1) of PERMEN ATR/BPN 13/2021:
Article 17
Section (1)
“KKPR for business activities is issued to applicants who have not yet obtained land or to applicants who have obtained land for their business activities.”
Land acquisition as referred to in the article quoted above is also regulated in Article 21 paragraph (1) of PERMEN ATR/BPN No. 13 of 2021 which reads as follows:
Article 21
Section (1)
“After the issuance of the KKPR which has not obtained land as referred to in Article 17 paragraph (1), the KKPR holder must release the land from the rights and interests of other parties based on an agreement with the rights holder or party who has such interests using sale and purchase, compensation, land consolidation, or other means by the provisions of statutory regulations .”
Based on the description of the article above, KKPR holders are obliged to release the land from the rights and interests of other parties, but KKPR holders are given the freedom to determine the mechanism for releasing their land.
KKPR is becoming increasingly important for business actors about business actors’ compliance and obedience to spatial planning regulated by the government because KKPR is a requirement for obtaining business permits and there are criminal sanctions for violations of spatial planning. Criminal sanctions and fines if Business Actors do not comply with the provisions on spatial utilization and do not comply with the provisions stipulated in KKPR are regulated in Article 17 number 33 in conjunction with Number 34 of the Job Creation Law which reads as follows:
33. The provisions of Article 70 are amended to read as follows:
Article 70
Section (1)
Any person who uses Space not by the Spatial Planning Plan as referred to in Article 61 letter b which results in a change in the function of the Space shall be punished with imprisonment for a maximum of 3 (three) years and a maximum fine of IDR 1,000,000,000.00 (one billion rupiah).
Section (2)
(2) If the criminal act as referred to in paragraph (1) results in loss of property or damage to goods, the perpetrator shall be punished with a maximum prison sentence of 4 (four) years and a maximum fine of IDR 2,500,000,000.00 (two billion five hundred million rupiah).
Section (3)
(3) If the crime as referred to in paragraph (1) results in the death of a person, the perpetrator shall be punished with a maximum prison sentence of 15 (fifteen) years and a maximum fine of IDR 8,000,000.00 (eight billion rupiahs).
34. The provisions of Article 71 are amended to read as follows:
Article 71
Any person who does not comply with the provisions stipulated in the requirements for Conformity of Spatial Utilization Activities as referred to in Article 61 letter c which results in a change in the function of the Space shall be punished with imprisonment for a maximum of 3 (three) years and a maximum fine of IDR 1,000,000,000.00 (one billion rupiah).
Based on the descriptions above, Business Actors who carry out space utilization activities must have a KKPR to carry out business activities in a location. Business actors must also pay attention to the suitability of the spatial plan at the selected location with their business activities. Because KKPR is not a land right, Business Actors must own or control the land that will be the location of their business, this can be done before or after having a KKPR. As a result of not fulfilling the KKPR, business actors will not get a Business License and can be subject to criminal sanctions if they continue to carry out business activities without having and complying with the KKPR. If business actors need consultation regarding KKPR, they can consult with PNPC by calling 0877 7926 0613 or info@pnpclawyer.com
Ilham Satria Wibawa, Born in Madiun, July 6, 1998. Obtained a Bachelor of Laws (SH) degree from Gadjah Mada University in 2022. Currently, I am an Advocate Intern at PNP Counselors at Law.