Location Permit

Regulation of Location Permit is regulated in the Regulation of State Minister for Agrarian Affairs / Head of the National Land Agency Number 5 of 2015 About Location Permit (“Permen 5/15“), Location Permit is a permit granted to the company to have a land for the purpose of investing its capital. The company referred to is individuals or legal person that have obtained permission to invest in Indonesia in accordance with the provisions of legislation. The investments is all shape of investment activities, either by domestic investors or foreign investors to conduct business in the territory of the Republic of Indonesia.

Any company that has obtained an capital ivestment approval must have a location permit to acquire the land required to implement the capital investment plan concerned. Furthermore, the location permit applicant is prohibited from doing land acquisition activity before the location permit is determined. In Permen  5/15 a location permit may be unnecessary and shall be deemed to have belonged to the enterprise concerned in the case provided for in Article 2 point (3) of Permen 5/15. The Company notifies the land acquisition and / or land use plan to the land office.

The designated land within the location permit is land according to the regional spatial layout plan for use in accordance with the capital investment plan to be carried out by the company in accordance with the approval of the capital investments it has.

Location permits can be given to companies with no more than the area as follows : (1) For Public Housing and settlements Development : (a) Public Housing and Setllements area: 1 province: 400 Ha, throughout Indonesia: 4,000 Ha (b) Hospitality resort area : 1 province: 200 Ha, throughout Indonesia: 4,000 Ha (c) For industrial estate business : 1 Province: 400 Ha, throughout Indonesia: 4,000 Ha (d) For plantation business cultivated in the form of large plantations with the Right to Use : (-) Sugarcane commodity : 1 province: 60,000 Ha, throughout Indonesia: 150,000 Ha (-) Other Food Commodities : 1 province: 20,000 Ha, throughout Indonesia: 100,000 Ha (d) For pond business: (-) On the island of Java : 1 province: 100 Ha, throughout Indonesia: 1,000 Ha (-) Outside of Java Island : 1 province: 200 Ha, throughout Indonesia: 2,000 Ha.

Especially for the Provinces of Papua and West Papua the maximum land tenure is double the maximum land holding area for a province.

In the need to determine the designated area within the company’s location permit as an applicant is required to submit a written statement of the area of ​​land already controlled by it and other companies that are a group with it. In the framework of efficiency and effectiveness of the industrial estate, more land is required than the provisions, it can be done after the Head of Land Office and Head of Regional Office of BPN Province get approval from the Minister of Agrarian and Spatial / Head of National Land Agency.

The location permit is granted for a period of 3 (three) years, if the period of land acquisition permit has not been completed then the location permit can extended for a period of 1 (one) year if the land already acquired reaches 50% (fifty percent) or more designated land area in the location permit. If within a period of land acquisition permits less than 50% (fifty percent) of the designated land area in the location permit, the location permit can not be extended.

The granting of location permits accompanied by a map, where the location permit holder can only acquire the land according to the map, the land already obtained shall be registered with the local Land Office.



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