Legal UpdatesPublicationsProcedures for Obtaining Location Permit through OSS System

Minister of Agrarian and Spatial Planning of the Republic of Indonesia has issued Regulation of Minister of Agrarian Affairs and Spatial Planning of the Republic of Indonesia Number 14 of 2018 concerning Location Permits (“MR ATR 14/18“). This regulation is the implementing regulation to the Republic of Indonesia Government Regulation Number 24 of 2018 concerning Electronic Integrated Business Licensing Services (“GR 24/18“). Through MR ATR 14/18, the government regulates the object and subject of the Location Permit, the granting procedure and the period of Location Permit, the rights and obligations of the Location Permit holder, the Location Permit financing, and monitoring as well as evaluation of Location Permit. In this regulation review, the main focus that will be explained is the procedure for granting Location Permit.

Location Permit can be submitted by individual and non-individual Business Entity. In the OSS System, Location Permit is divided into two types, 1) Location Permits without Commitment; and 2) Location Permit based on Commitments. Location Permits without Commitment are given for land designated for these following activities:

    1. land for business location located in a location that has been in accordance with its designation according to the Spatial Plan;
    2. land for business location located in the location of special economic zones, industrial estates, and free trade and free ports;
    3. land for business location that has been controlled by another Business Entity who has obtained a location permit, and will be used by the Business Entity;
    4. land for business location originated under the authority or Business Entity working on the development area that has been in accordance with the spatial planning for that area;
    5. land for business location needed for business expansion that has been running in which the land location is adjacent to the business location or activity;
    6. land for business location needed to implement the Location Permitplancan not be more than:
      1. 25 Ha for agricultural businesses and / or activities;
      2. 5 Ha for the construction of houses for low-income communities
      3. 1 Ha for businesses and / or non-agricultural activities; or
    7. land for business location that will be used for national strategic projects.

Both types of Location Permit must follow the procedures as described in this article. In the first stage, the Business entity submits an application for registration of Location Permit electronically through the OSS System. The following are the requirements that must be attached to the application :

    1. Business Identification Number (NIB);
    2. Statement of fulfilment of Location Permit Commitment;
    3. Statement of Permit requirements for Location permits without Commitment;
    4. Request for fulfilment of Location Permit Commitment;
    5. Map or Sketch that contains the coordinates of thearea boundary of the location requested;
    6. Plans for business activities;
    7. Legitimate Proof of payment of service fees; and
    8. Statement of land area that has been controlled by Business Entity and other Business Entity which constitute 1 (one) group.

If the application and its requirements are complete, the Location Permit will be issued through the OSS System in the form of a Decision on Granting Location Permits in the form of electronic documents.

In the case that the Location Permit submitted is a Location Permit without Commitments, the Location Permit can be effective immediately and the Business Entity can directly carry out land acquisition activities. However, for a Location Permit based on Commitment, the Business Entity must submit a request for fulfilment of the Location Permit no later than 10 (ten) days after the issuance of the Location Permit through the OSS System. Requests for fulfilment of Location Permit Commitments must be submitted by including technical consideration requirements to the Land Office in which the business and / or business activities are located. After the application is submitted by the Business Entity, the Land Office will provide technical considerations. Then, the technical consideration will be given to the Regency / City Regional Government of the business location.

The Regency or City Regional Government will follow up on technical considerations by giving approval on the fulfilment of the Location Permit Commitment, or refusing the fulfilment of the Location Permit Commitment in the event that the Land Office rejects the technical considerations. In the event that the fulfilment of the Location Permit Commitment has been approved by the Regency or City Regional Government, Location Permit that has been issued by the OSS System before is considered valid.

 


ADCO Law earns the trust to represent clients from multinational companies to emerging entities across a wide range of industries to achieve their business objectives in Indonesia.

By combining commercial sensibilities and legal expertise, ADCO as a Law Firm Jakarta assists the clients to structure, organize and implement their business ventures and investments, including structuring, financing and securing investments as well as establishing new foreign companies in Indonesia. Should you have more queries regarding this matter, please do not hesitate to contact us.

Dendi Adisuryo
dendi.adisuryo@adcolaw.com

Liza Mashita
liza@adcolaw.com

@2020 ADCO Law. All rights reserved.
This publication has been prepared by Aditya Yudhistira for general informational purposes only to provide clients with information on recent legal developments and is not intended as legal advice or opinion.

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