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Location Permit based on Business Licensing Application Through Online Single Submission

By January 29, 2019 No Comments

Location Permit

Object and Subject

  1. The object of Location Permit must be a land which according to the Regional Spatial Plan (“RTRW”) is intended to be used in accordance with the business plan prepared by Business Actor.
  2. The limitation of control over land that is subject to a Location Permit for Business Actor or other Business Actor which constitutes a holding company with the previous Business Actor, must not exceed: For housing and settlement development business, it is 400 hectares in 1 province and 4000 hectares throughout Indonesia.
    • For hotel resort area, it must not exceed 200 hectares in 1 province and 4000 hectares throughout Indonesia.
    • For industrial area/special economic zone, free trade zone, free port area and/or other zone which has been designated as a national strategic project, it must not exceed 400 hectares in 1 province and 4000 hectares throughout Indonesia.
    • For plantation business being cultivated in a form of a large sugarcane plantation with a Cultivation Rights (“HGU”), it must not exceed 60.000 hectares in 1 province and 150.000 hectares throughout Indonesia.
      Whereas for other food commodities, it must not exceed 20.000 hectares in 1 province and 100.000 hectares throughout Indonesia.
      For fish embankment business in Java, it must not exceed 100 hectares in 1 province and 1000 hectares throughout Indonesia. Whereas in a territory outside Java, it must not exceed 200 hectares in 1 province and 2000 hectares throughout Indonesia.
      The limitation of possession over land in Papua or West Papua Province are two times the limitiation of possession over land in other single province.In determining the total area to be designated in a Location Permit, Business Actor must submit a written statement regarding the location and area of land that has been possessed by Business Actor or any other Business Actor which constitutes a holding company with the previous Business Actor.The limitation of possession over land that is subject to a Location Permit as aforementioned above does not apply to Regional State Owned Enterprise (“BUMD”), State Owned Enterprise (“BUMN”) in a form of Public Company (“Perum”), a Business Entity whose its entire or majority shares are state’s owned, and a Limited Liability Company (“PT”) whose its shares are owned by the public.
  3. The subject of Location Permit is an individual Business Actor and non-individual Business Actor. Individual Business Actor must be an Indonesian citizen who is subject to law, whereas for non-individual Business Actor, it must be in a form of PT, Perum, Regional Perum, other state owned legal entity, public service agency, broadcasting agency, business entity established by a foundation, and cooperation.
Related Articles  Procedure on Review of Regional Spatial Plan

Location Permit Issuance Procedures

  1. General
    Location Permit with commitment to be fulfilled is issued to Business Actor through OSS. Location Permit can also be issued without commitment in case :

    • The land to be used for the business is located in an area designated to be used for the business itself in accordance with Detailed Spatial Planning (“RDTR”) and/or general urban spatial planning;
    • The land to be used for the business is located in a special economic zone, industrial area, free trade zone, or free port zone;
    • The land to be used for the business was provided to Business Actor by the previous owner which had already obtained a Location Permit for the land;
    • The land to be used for the business was provided by an authority or a development organizing body of an area in accordance with the spatial planning of the development area;
    • The land to be used for the business is required for business expansion and located next to the current location of the business;
    • The land to be used for the business as stated on the Location Permit planning must not exceed :
      • 25 hectares for agricultural business;
      • 5 hectares for low income housing;
      • 1 hectare for non-agricultural business.
    • The land will be used for national strategic project.
  2. Procedures for petition and its requirements
    1. Business Actor submits the petition for registration of Location Permit through OSS electronically.
    2. The requirements for the petition for Location Permit are:
      • NIB;
      • Statement regarding the readiness to fulfill the Location Permit commitment.
      • Statement regarding the fulfillment of requirements for the issuance of Location Permit without commitment;
      • Petition for the fulfillment of Location Permit commitment;
      • Mapping/Sketching containing the coordinate of the location to be granted with Location Permit;
      • Business planning;
      • Legal proof of payment for licensing services;
      • Letter containing statement regarding the total amount of land that have been obtained by the Businesss Actor or other Business Actor constituting a holding company with the aforementioned Business Actor.
  3. Location Permit Issuance
    • Location Permit is electronically issued through OSS in a form of decision to grant Location Permit.
    • In case the Location Permit is issued with commitment, Business Actor will only be allowed to conduct land acquisition after the issued Location Permit is declared effective for the area as mentioned on the land technical consideration mapping.
    • In case the Location Permit is issued without commitment, the issued Location Permit will be declared