KKPR for Industrial Zones in Indonesia

KKPR for Industrial Zones in Indonesia: Regulatory & Licensing Guide

Introduction: KKPR in Industrial Zones

KKPR (Kesesuaian Kegiatan Pemanfaatan Ruang) for industrial zones (Kawasan Industri) plays a unique and strategic role in Indonesia’s business licensing system. Unlike general land-based business locations, industrial zones are specifically planned, zoned, and regulated to host manufacturing, logistics, processing, and large-scale commercial activities.

For investors and companies planning operations in industrial zones across Indonesia, including projects supporting supply chains in Bali, Lombok, and Sumbawa, understanding how KKPR applies to industrial estates is essential to ensure fast-track licensing and legal certainty.

Legal Basis for KKPR in Industrial Zones

KKPR requirements for industrial zones are explicitly regulated under Indonesian law, including:

1. Law No. 11 of 2020 on Job Creation (Omnibus Law)
2. Government Regulation (PP) No. 21 of 2021 on Spatial Planning
3. Government Regulation (PP) No. 5 of 2021 on Risk-Based Business Licensing
4. Government Regulation (PP) No. 28 of 2025 (amendment and procedural refinement)

Under Article 27 letter a of PP No. 28 of 2025, business activities located within officially designated industrial zones may be exempted from substantive KKPR assessment, provided that the zone already holds valid spatial conformity approval.

This provision is designed to accelerate investment and reduce duplication of spatial assessments within planned industrial estates.

What Is Considered an Industrial Zone?

An industrial zone (Kawasan Industri) is a designated area developed and managed by an industrial estate company, approved by the government, and intended for industrial and supporting activities.

Industrial zones are governed separately under Government Regulation No. 142 of 2015 on Industrial Zones, which requires each zone to comply with spatial planning, environmental approval, and infrastructure standards.

When a business operates inside a licensed industrial zone, spatial conformity is largely pre-approved at the zone level.

Do Businesses in Industrial Zones Still Need KKPR?

Yes—but with important distinctions.

For businesses located inside an approved industrial zone:

• Individual KKPR may not require separate substantive assessment
• OSS may issue KKPR automatically based on the zone’s approval
• Location conformity is derived from the industrial zone’s master spatial approval

However, businesses must still:

• Register through OSS-RBA
• Select the correct KBLI
• Declare location within the industrial estate

Failure to correctly input industrial zone data can still result in licensing delays.

KKPR Process for Industrial Zones via OSS

The KKPR process for industrial zones is fully integrated into the OSS-RBA system and follows these steps:

1. NIB Registration or Update
2. Selection of Industrial-Related KBLI
3. Declaration of Location Within Industrial Zone
4. System Validation Against Industrial Zone Database
5. Automatic KKPR Confirmation or Issuance

If the industrial zone is already registered and synchronized with OSS, KKPR can be issued immediately or within a short verification period.

RDTR and Industrial Zones

Most licensed industrial zones are already aligned with RDTR (Rencana Detail Tata Ruang) and regional spatial plans. This significantly reduces the risk of zoning conflict.

In cases where RDTR is not yet integrated, the spatial conformity relies on:

• Approved industrial zone master plan
• ATR/BPN validation
• Provincial or regency spatial approval

This structure ensures that industrial activities remain compliant even in developing regions.

Businesses Commonly Located in Industrial Zones

Industrial zones typically host:

• Manufacturing plants
• Processing facilities
• Warehousing and logistics hubs
• Export-oriented industries
• Supporting services (maintenance, utilities, storage)

For these activities, KKPR within an industrial zone offers faster licensing timelines compared to non-zoned land.

Industrial Zones and Foreign Investment (PT PMA)

Industrial zones are particularly attractive for foreign-owned companies (PT PMA) because:

• Zoning risk is minimized
• Infrastructure is pre-approved
• Licensing is streamlined
• Environmental and spatial compliance is centralized

This makes industrial zones a preferred option for PMA projects in eastern Indonesia, including NTB (Lombok & Sumbawa), where industrial expansion is actively promoted.

Industrial Zones Supporting Bali, Lombok & Sumbawa

Although Bali itself has limited heavy industrial zoning, industrial estates in Lombok and Sumbawa play a key role in supporting logistics, construction materials, food processing, and export activities linked to Bali’s economy.

Through OSS-RBA, KKPR applications for industrial zones in West Nusa Tenggara (NTB) and other provinces can be processed online, while still serving businesses operating supply chains connected to Bali.

Our services focus on Bali, Lombok, and Sumbawa, but remain fully applicable nationwide.

Common Issues in KKPR for Industrial Zones

Even within industrial zones, applications can face issues due to:

• Incorrect declaration of industrial zone location
• Mismatch between KBLI and zone activity type
• Incomplete industrial estate documentation

These issues are administrative and can be avoided with proper preparation.

Why Professional Assistance Still Matters

Although industrial zones benefit from simplified spatial approval, OSS input errors or regulatory misalignment can still delay business licensing.

Professional assistance ensures:

• Correct OSS classification
• Proper industrial zone validation
• Faster KKPR issuance
• Seamless continuation to environmental and building approvals

Conclusion

KKPR for industrial zones in Indonesia offers a simplified and accelerated pathway for business licensing, supported by PP No. 21 of 2021, PP No. 5 of 2021, and PP No. 28 of 2025.

For businesses operating within licensed industrial estates, spatial conformity is largely pre-approved, significantly reducing regulatory friction. This makes industrial zones a strategic choice for large-scale, manufacturing, and foreign investment projects, particularly in Lombok and Sumbawa, with economic linkage to Bali.

With correct OSS input and regulatory understanding, KKPR for industrial zones can be processed efficiently, legally, and entirely online across Indonesia.

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This article is prepared for informational purposes and does not constitute legal advice. Regulations may change in accordance with government policy.