“Location Permit (Izin Lokasi) replaced by the Conformity of Spatial Utilization Activities (Kesesuaian Kegiatan Pemanfaatan Ruang / KKPR), specifically for non-micro and small-scale business, its implementation through a Confirmation of the Suitability of Spatial Utilization (Konfirmasi Kesesuaian Kegiatan Pemanfaatan Ruang/KKKPR) and an Approval of the Suitability of Spatial Utilization (Persetujuan Kesesuaian Kegiatan Pemanfaatan Ruang/PKKPR).”
Following the enactment of Law No. 11 of 2020 on Job Creation Law in November 2020 which amending Law No. 26 of 2007 on Spatial Planning. The Government issued the implementing regulation to provide and support the Job Creation Law especially in Spatial Plan Government Regulation Number 21 of 2021 (“GP 21/2021”) which replace Government Regulation No. 15 of 2010 and impose a new document which called Kesesuaian Kegiatan Pemanfaatan Ruang (KKPR).
The regulation simplifies the rules and replaces the requirement to obtain a Location Permit. Therefore, the location permit is no longer required and replaced with the KKPR. KKPR functions as one of the document that should be obtained before a business actor can continue the business licensing process. Business actors beside micro and small-scale business actors can obtain a PKKPR through the Online Single Submission (“OSS”) system which states that the business activities conform to a Detailed Spatial Plan (“Rencana Detail Tata Ruang / RDTR”) of the relevant location thus the business actor can operate their business. This article will specifically discuss the KKPR for business activity non-micro and small-scale.
Confirmation of the Suitability of Spatial Utilization (Konfirmasi Kesesuaian Kegiatan Pemanfaatan Ruang/KKKPR)
KKKPR is a document that stated of the suitability between spatial utilization activity plan and RDTR. KKKPR is given by the suitability spatial utilization activity plan and RDTR. The KKKPR for the business activity can be done through OSS with the stages below:
a. registration;
b. assessment of document of the Spatial Utilization proposal to the RDTR; and
c. issuance of the Confirmation of the Suitability of Spatial Utilization/KKKPR.
The business actors should apply for the KKKPR through OSS by registering and providing the information such
a. location geographical coordinates;
b. total land area needed for the spatial utilization activity;
c. control/ownership over the land;
d. the intended business;
e. the planned number of floors;
f. area of the building; and
The issuance of KKKPR is approximately 1 (one) working day from the registration date, or the payment of the Non-Tax State Revenue has been made and remains valid for 3 (three) years from the issuance date.
Approval of the Suitability of Spatial Utilization (Persetujuan Kesesuaian Kegiatan Pemanfaatan Ruang/PKKPR
PKKPR means the document that states the Suitability of Spatial Utilization between the spatial utilization activity plan and the Spatial Layout plan (“RTR”) besides RDTR. The business actors should apply for the PKKPR through OSS by registering and providing the information such;
a. location geographical coordinates;
b. total land area;
c. control/ownership over the land;
d. the intended business;
e. the planned number of floors;
f. area of the building; and
g. technical building plan and/or area master plan.
The issuance of the PKKPR for the business activity can be done through OSS with the following stages:
a. registration;
b. assessment of a document of proposal spatial utilization plan to the RTR, zoning plan (“Rencana Zonasi/RZ”), Certain Nationally Strategic Areas (“Kawasan Strategis Nasional Tertentu/KSNT”), Zoning Plan for Inter-regional Areas (“Rencana Zonasi Kawasan Antar Wilayah / RZ KAW”); and
c. the issuance of the Approval of the Suitability of Spatial Utilization/PKKPR.
Timeframe for the PKKPR issuance is 20 working days at the latest from the registration date or the payment of the Non-Tax State Revenue has been made and remains valid for 3 (three) years from the issuance date.
The PKKPR can be issued without the assessment process in the event the application is intended for the location as follows:
a. industrial area and tourism area that already have the business licensing documents in accordance with the prevailing laws and regulations; and
b. special economic zones which the regulation have determined.
Micro and small-scale businesses who are exempt to obtain the PKKPR are required to submit a written statement regarding the conformity of their business activities to the RTR to the OSS system.
Sanction
GP 21/2021 also regulates the sanctions for business actors who disobey the RTR requirement, including violating spatial utilisation provisions. The administrative sanctions can be in the form of written warnings, fine, a temporary suspension of the activities, closure of the location, cancellation or the revocation of the KKPR, and building demolitions.
Article 69 Law No. 26 of 2007 on Spatial Planning that amended by Article 17 Number 32 Job Creation Law stated that for a person and/or its activities utilize the space that has been determined without any KKPR and changed its function can be subject of the 3 (three) years prison and fine in the amount of maximum IDR 1 billion.
Author: Sutria Puti Dwirahayu
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