the OSS System : PKKPR (Space Utilization Compatibility Approval) in Indonesia

 If you are a business owner in Indonesia dealing with the Online Single Submission (OSS) system, particularly for medium and large-scale ventures, you will inevitably encounter the term PKKPR (Persetujuan Kesesuaian Kegiatan Pemanfaatan Ruang). This document is crucial as it determines if your business location and planned activities comply with the local Spatial Planning (RTR) regulations.

PKKPR replaces the old Location Permit (Izin Lokasi) and is a fundamental requirement for securing other necessary licenses like the Business Identification Number (NIB) and Building Approval (PBG).

What is PKKPR and Why is it Essential?

PKKPR is the document that officially confirms the compatibility between a business's planned space utilization activities and the regional Spatial Planning (RTR), specifically for areas outside the Detailed Spatial Plan (RDTR).

• Function: PKKPR ensures the activity aligns with the Spatial Planning (RTR) of the area5.
• Approval Authority: The OSS system approves the PKKPR based on the business operator's application.
• Legal Basis: It serves as a reference for:
• Spatial Utilization (Pemanfaatan Ruang).
• Land Acquisition (Perolehan Tanah).
• Transfer of Land Rights (Pemindahan Hak Atas Tanah)
• Issuance of Land Rights (Penerbitan Hak Atas Tanah).

Who is Required to Obtain PKKPR?

PKKPR is mandatory for businesses classified as Medium Scale and Large Scale11.

• Medium Scale: Businesses with a paid-in capital of more than IDR 5, 000, 000, 000.00 up to IDR 10, 000, 000, 000.00. 
• Large Scale: Businesses with a paid-in capital exceeding IDR 10, 000, 000, 000.00.

Who is Exempt from PKKPR? (The UMK Exception)

Micro and Small Businesses (UMK) are given a simplification and do not need to process PKKPR14. UMK owners only need to submit a self-declaration that:

• The business activity is compliant with the RTR and RDTR
• They agree to be sanctioned if non-compliance is found later.

 How to Apply for PKKPR: The System and Mechanism

The application for PKKPR is made electronically through the OSS (Online Single Submission) system.

1. Initial Requirements & Data Input

Before submission, the business operator must have an Account and fill in their business data in the OSS System, including18:

• Indonesian Standard Industrial Classification (KBLI).
• Type of product/service.
• Business capital.
• Business location and name.
• Plant/Workshop Location and Address

2. Validation and Condition Check

The OSS system validates the input data. 

For PKKPR under Article 181 of PP 5/2021, the system checks two criteria:

• The business is not UMK.
• The business location is in a Regency/City that does not yet have RDTR integrated with the OSS System.

3. Choosing the Applicable Condition (Article 181, PP 5/2021)

The system requires the operator to select one of the specific conditions under Article 181 of PP 5/20212323. This fast-track option (PKKPR Tanpa Penilaian) applies to locations that have no RDTR or the RDTR is not integrated with OSS24:

• Expansion (Perluasan): Location is needed for expansion of an existing business, the land borders the current location, and the spatial designation is the same.
• Land Controlled by Others (Sewa/Pinjam): The location is land already controlled by another Business Operator who has obtained spatial compatibility, and the new applicant will use it.
• Oil and Gas Activity (Migas): The location is within an established oil and gas business area.

4. Document Upload and Verification

The business operator must upload supporting documents to the OSS System according to the selected condition28.

• For Expansion (Perluasan): Must include SHGB/SHGU/ILOK/KKPR of the existing business in the applicant's name with the same spatial designation, and the business permit for the existing location.
• For Land Controlled by Others (Sewa/Pinjam): Must include land control documents (lease/loan agreement or sale/purchase deed) and SHGB/SHGU/ILOK/KKPR issued to the other business operator for the same land.
• For Oil and Gas Activity (Migas): Must include the Cooperation Contract and a map of the oil and gas business area.

The Verificator Officer then validates the consistency and validity of the uploaded documents.

5. Approval and Issuance

• If the documents are valid and comply with the selected condition, the verifier approves the submission, and the system issues the PKKPR Article 181.
• If the documents are invalid or non-compliant, the verifier rejects the submission, and the system sends a rejection notification.

Timeline and Cost

• Jangka Waktu Pelayanan (Service Duration): 5 working days.
• Biaya/Tarif (Cost/Fee): Not charged (Tidak dikenakan biaya).

Product: Persetujuan Kesesuaian Kegiatan Pemanfaatan Ruang (Spatial Utilization Compatibility Approval).

PKKPR With Spatial Assessment (Non-Article 181 Route)

For applications that do not qualify under Article 181, a full spatial assessment is required (PKKPR Dengan Penilaian Tata Ruang Sesuai Kewenangan)38.

• Review Process: This involves a review using the principle of complementarity and tiered assessment, technical land considerations from the land office, and a review by the Spatial Planning Forum.
• Timeline: Issued within a maximum of 20 days after all requirements and PNBP payment are received.
• Cost: PNBP payment is required.
• Validity: Valid for 3 years from issuance.

Step-by-Step Pengurusan PKKPR Manual

Application Submission: The application is submitted through the OSS system.
Required documents include:

• Complete coordinates of the location (GIS polygon file).
• Required land area.
• Information on land control (proof of ownership or control).
• KBLI information.
• Rencana teknis bangunan (building technical plan).

Document Verification by Dinas Pertanahan: The documents uploaded to the OSS system are verified by the local Land Office (Dinas Pertanahan). If documents are incomplete, the operator must re-upload them.

PNBP Payment: Once the documents are verified as complete, a Payment Order Letter (SPS) for the Non-Tax State Revenue (PNBP) is issued. Payment is made at a designated bank.

Survey and Technical Consideration (PERTEK) by BPN: The Badan Pertanahan Nasional (BPN), or National Land Agency, will conduct a survey of the location. This survey is critical for creating the Pertimbangan Teknis (PERTEK), or Technical Consideration, required for issuing the PKKPR.

Kajian Forum Penataan Ruang (Spatial Planning Forum Review): A review is conducted involving the Spatial Planning Forum. This review considers national and regional spatial plans (RTR-WN, RTRWP, RTR-KSN, etc.).

Approval Issuance: The PKKPR is issued in the OSS system. It can be an approval (full or partial) or a rejection with stated reasons.

Timeline and Cost for Standard PKKPR (With Assessment)

Timeline: The process takes a maximum of 20 days since the application requirements were received completely and PNBP was paid.

❓ Frequently Asked Questions (FAQ)

Q: What is the maximum processing time for PKKPR?

A: The fast-track PKKPR process (Article 181) takes 5 working days52. The standard process (with assessment) takes a maximum of 20 days after requirements are complete.

Q: Why was my PKKPR application rejected?

A: PKKPR is rejected due to lack of completeness of the required documents or because the business location does not comply with the designated RDTR.

Q: Where can I submit my PKKPR application?

A: Electronically (Online) via the OSS system at oss.go.id55. Non-Electronically (Offline) via the local Investment and One Stop Service Agency (DPMPTSP).

Q: What is the legal basis for the PKKPR service?

A: The legal basis includes57:

• Law No. 25 of 2009 on Public Services.
• PP No. 5 of 2021 on the Implementation of Risk-Based Business Licensing.
• Perka BKPM No. 4 of 2021 on Guidelines and Procedures for Risk-Based Business Licensing Services.
• Permen ATR/BPN No. 13 of 2021 on the Implementation of Spatial Utilization Compatibility.