Gettting to Know PKKPRL: Basic Permits Before Doing Business at Sea

GETTING TO KNOW PKKPRL: BASIC PERMITS BEFORE DOING BUSINESS AT SEA

Morowali, 12 January 2025

For businesses in the maritime sector, the term PKKPRL may be familiar. However, for the general public or new investors, this abbreviation often sounds technical and complicated. Simply put, if you want to build something on land, you need a Building Permit (PBG). Now, if you want to operate in marine areas, you are required to have a PKKPRL. ​​Let's dig deeper.

PKKPRL stands for Approval of Conformity of Marine Spatial Utilization Activities. This is a marine spatial planning document that certifies that your planned activities comply with the spatial plan or zoning plan in that marine area. In accordance with the spirit of the Omnibus Law (Job Creation Law), PKKPRL is now one of the Basic Requirements for Business Licensing. Without this document, subsequent business permits cannot be processed.

The government requires PKKPRL not merely for administrative purposes, but also to maintain the balance of our marine ecosystem. Here are its functions: 

1. Legal Certainty : Ensuring that your business location is legal and does not infringe on conservation areas or shipping lanes;

2. Environmental Protection : Ensuring that human activities (such as fish farms, undersea cables, or piers) do not damage coral reef or mangrove ecosystems; and

3. Conflict Resolution : Preventing overlapping marine land use between agencies or between businesses.

The regulation regarding PKKPRL is a direct derivative of the risk-based licensing transformation in Indonesia. Its main foundations are as follows:

• Law Number 6 of 2023 concerning the Stipulation of Government Regulation in Lieu of Law (Perppu) No. 2 of 2022 concerning Job Creation into Law.

• Government Regulation (PP) Number 5 of 2021 concerning the Implementation of Risk-Based Business Licensing.

• Government Regulation (PP) Number 21 of 2021 concerning the Implementation of Spatial Planning.

• Minister of Maritime Affairs and Fisheries Regulation Number 28 of 2021 concerning the Implementation of Marine Spatial Planning (the main technical guide for the implementation of the PKKPRL).

• Government Regulation (PP) Number 85 of 2021 concerning Types and Tariffs for Non-Tax State Revenue (PNBP) Applicable to the Ministry of Maritime Affairs and Fisheries.

The application process is now integrated through an electronic system to reduce bureaucracy. The general flow is as follows:

1. Registration via OSS: Businesses register through the Online Single Submission (OSS) system;

2. Document Verification: The Ministry of Maritime Affairs and Fisheries (KKP) will verify that the location coordinates align with the marine spatial plan;

3. PNBP Payment: Applicants are required to pay Non-Tax State Revenue (PNBP) according to the applicable rates (except for certain exempted activities); and

4. Approval Issuance: If all requirements are met and the technical aspects are in accordance, the PKKPRL document will be issued.

Many applicants experience obstacles due to inaccurate documentation. Here are some tips:

1. Use WGS 84 Datum: Ensure the coordinates you input use the World Geodetic System 1984 geodetic reference system to ensure accuracy with the KKP map on e-Sea Map;

2. Check RZWP-3-K: Conduct an independent survey of the local Coastal Area and Small Islands Zoning Plan (RZWP-3-K) before submitting; and

3. Area Compliance: Ensure that the area proposed in the OSS system exactly matches that stated in the technical document/proposal.

For non-business activities (such as research or customary protection), requirements may be slightly different and often receive a PNBP tax incentive of up to zero Rupiah.

Writer : Muhammad Badwi Majid