PKKPR in Indonesia: Location and Environmental Approvals
Which location, environmental and building approvals (PKKPR, AMDAL, PBG) a business site needs in Indonesia, and which a rented building or the NIB can cover.
References (6)
- PP No. 28 Tahun 2025 on risk-based business licensing, in force 5 June 2025. Article 1 angka 26, days are working days. Article 4(2) and (4), the basic requirements, through OSS. Articles 8, 10 and 11, what is needed at the start and what in the preparation stage. Article 12(1) and (2), the three basic requirements, issued for the location. Article 13, shared buildings. Articles 15, 17 and 18, confirmation and approval of location suitability. Article 19, the state fee. Article 27(1) and (2), approval without assessment. Article 32, the micro business self-declaration. Article 78, the environmental approval in three forms. Articles 93, 98, 99, 101 and 102, the environmental routes. Article 106, building approvals only for a business that builds. Articles 108(1), 109(2), 113(1), 118 to 121 and 122(1), the building approval and certificate of fitness. Article 123(1), buildings standing without a permit. Article 151, industry in industrial estates. Article 220(2), the low-risk NIB as the SPPL. Article 549, approvals issued before the regulation.
- Peraturan Menteri Investasi dan Hilirisasi/Kepala BKPM No. 5 Tahun 2025, in force 2 October 2025. Articles 41 and 42, using a shared building's approvals. Article 46(1), who issues the location approval. Article 48, options after a refusal. Article 170(3), the licence application continuing while the building approval is in process.
- PP No. 22 Tahun 2021 on environmental protection and management, in force 2 February 2021. Article 3(3), the environmental approval as a prerequisite of the business licence. Article 5(2), when an AMDAL is required.
- Peraturan Menteri LHK No. 4 Tahun 2021, the list of activities requiring an AMDAL, UKL-UPL or SPPL. Articles 3 to 7.
- Peraturan Menteri LH/Kepala BPLH No. 22 Tahun 2025, in force 27 October 2025. Articles 3, 4, 6 and 8, who issues the environmental approval.
- PP No. 16 Tahun 2021 on buildings, in force 2 February 2021. Article 11(2), an amended building approval for a change of function. Article 253(3) and (4), the building approval before construction, and for altering or extending a building.
KKPR is the location approval in Indonesia: it confirms that the planned use of a site fits the spatial plan. It comes as an automatic confirmation or, where the area’s detailed spatial plan is not in OSS, as an approval, the PKKPR.
It is one of three approvals tied to the site: location, environment and building. Each is issued for the business’s location through OSS (Online Single Submission, the government’s licensing system), and the location approval is settled when the business starts, while an AMDAL or UKL-UPL approval and the building approval come later, before building (PP 28/2025, Articles 8, 10 and 11). That puts the location approval among the steps in what to do after registration, ahead of the recurring filings in our compliance checklist.
The rules decide much of this in advance. A trade or services business renting space in a shared building, such as an office building, can rely on the building’s approvals where its manager holds them. A low-risk business’s NIB (Nomor Induk Berusaha, the business identification number) is also its SPPL, the lightest form of environmental approval; the others are the UKL-UPL (environmental management and monitoring plan) and the AMDAL (environmental impact assessment).
Where the area’s detailed spatial plan (RDTR, Rencana Detail Tata Ruang) is in OSS, the location check is automatic. The heavier route, which can include a PKKPR, an AMDAL and a building approval (PBG, Persetujuan Bangunan Gedung), is for a business with premises of its own, and the PBG only if it builds.
We work out which approvals your site needs and obtain them for you, as a separate engagement.
Which approvals your site needs
| Location | Environment | Building | |
|---|---|---|---|
| Office tenant | The building’s | The building’s | The building’s |
| Low-risk | Self-declared if micro, otherwise as below | SPPL, with the NIB | PBG only if you build |
| Detailed plan | Automatic confirmation | Set by the activity | PBG only if you build |
| No plan in OSS | Approval (PKKPR) | Set by the activity | PBG only if you build |
| Industrial estate | Shortened approval if registered in OSS | Under the estate’s AMDAL, where it has one | PBG only if you build |
The “Detailed plan” and “No plan in OSS” rows apply where the business has its own premises.
The tenant route is for trade and services that need no building of their own, in office buildings, malls, markets, hospitals, transport hubs and apartment blocks (Permeninves/BKPM 5/2025, the investment ministry’s regulation on licensing procedure, Article 41). The tenant files its lease, both businesses’ NIBs and the building’s approvals, and OSS or the regional office confirms within 5 working days whether it needs any of its own (Article 42). A virtual office address relies on the same route.
Industry must normally sit in an industrial estate (PP 28/2025, the government regulation, or Peraturan Pemerintah, on risk-based licensing, Article 151). Our note on special economic zones covers the zones themselves.
What comes first, and what waits until you build
Where a business builds its own premises, the approvals follow the project, and the licence application can carry on while the PBG and the certificate of fitness for use (SLF, Sertifikat Laik Fungsi) are in process (Permeninves/BKPM 5/2025, Article 170(3)).
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Location
The KKPR, a confirmation or a PKKPR, is settled when the business starts.
-
SPPL
Issued with the NIB where neither an AMDAL nor a UKL-UPL applies.
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Land and plans
The AMDAL or UKL-UPL approval and the PBG can run alongside acquiring the land.
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Construction
Building work starts once the PBG is issued.
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Use
The SLF is needed before anyone uses the building.
The two forms of location approval (KKPR and PKKPR)
Which form a site gets depends on whether the area’s detailed plan is in OSS (PP 28/2025, Articles 15, 17 and 18).
| Confirmation | Approval (PKKPR) | |
|---|---|---|
| Applies | The detailed plan is in OSS | There is no detailed plan in OSS |
| Decision | Automatic | Assessed against the wider spatial plans |
The office that issues a PKKPR depends on where the site is: a regency or city, the province, or OSS for a site across provinces (Permeninves/BKPM 5/2025, Article 46(1)). A state fee applies on the approval route (PP 28/2025, Article 19).
A PKKPR can be issued without the assessment inside an industrial estate or special economic zone whose coordinates are registered in OSS, and for a plot that holds a KKPR and passes by transfer or lease to a business with the same activity and area (PP 28/2025, Article 27(1) and (2)). A micro business at low risk declares its location itself in OSS (Article 32). If a location does not fit the plan, the business can choose another site or consult the regency or city’s spatial-planning office (Permeninves/BKPM 5/2025, Article 48).
The environmental approval: SPPL, UKL-UPL or AMDAL
The environmental approval comes in three forms, from the lightest to the heaviest (PP 28/2025, Article 78).
SPPL
A statement of commitment to manage the environment. For a low-risk activity the NIB is the SPPL (Article 220(2)); otherwise it is a self-declaration issued automatically with the NIB (Article 101(2)).
UKL-UPL
For activities without significant impact that the list names. At medium-low risk OSS approves the specific standard form automatically (Articles 98(2) and 99(1)). Higher-risk activities are checked first (Articles 98(3) and (4)).
AMDAL
For activities with significant impact. The assessment can take up to 50 working days once the file is complete, excluding the applicant’s own corrections, which is why it is planned early (Article 93(1) and (3)).
The form is set by a list in Permen LHK 4/2021, the environment ministry’s regulation on which activities need which form. It works by type and scale of activity, and by whether the site is in or next to a protected area (Articles 3 to 7; PP 22/2021, Article 5(2)). OSS routes the application to the regent or mayor, the governor or the Ministry of Environment, depending on where the site is (Permen LH/BPLH 22/2025, Articles 3, 4, 6 and 8).
A tenant of an industrial estate, special economic zone or free-trade zone with an area-wide AMDAL prepares a detailed environmental plan, which the estate manager approves and which serves as its approved statement of environmental management (PP 28/2025, Article 102(1) to (3)).
Building approval and certificate of fitness (PBG and SLF)
These are required of a business that needs to construct a building as its place of business (PP 28/2025, Article 106), such as one buying land or property to build on. The PBG comes before construction (Article 108(1)) and before altering or extending a building (PP 16/2021 on buildings, Article 253(3) and (4)); a change of a building’s function needs an amended PBG (Article 11(2)).
The process opens with a free planning consultation (PP 28/2025, Article 109(2)). The technical review comes next, and the PBG is issued once the local fee is paid (Articles 113(1) and 118 to 121). The SLF must be in hand before the building is used (Article 122(1)); in a shared building it is the owner’s or manager’s (Permeninves/BKPM 5/2025, Article 41).
A business whose building is already standing without an IMB (Izin Mendirikan Bangunan, the earlier building permit) or PBG from before 5 June 2025 need not obtain a PBG and can apply for the SLF directly (PP 28/2025, Article 123(1)). Basic approvals issued before PP 28/2025 took effect, and still valid, continue to apply, and names used before it are read as the new ones (Article 549(a) and (b)).
What MAM takes care of
MAM obtains these approvals for clients as a separate engagement, alongside forming a PT PMA or a local company.