Within Indonesia’s risk-based business licensing framework, licensing is no longer determined solely by the type of business activity conducted. With the implementation of the Online Single Submission – Risk Based Approach (OSS-RBA), the suitability of a business location is now an equally important and decisive factor.
One of the key references in assessing location suitability is the Detailed Spatial Plan (Rencana Detail Tata Ruang – RDTR). RDTR serves as the basis for determining whether a specific location may be used for certain business activities, while simultaneously ensuring that land use aligns with regional development plans.
This concept is not entirely new. Prior to the introduction of the OSS-RBA system, businesses were required to obtain a Location Permit (Izin Lokasi) before land acquisition and development could take place. The Location Permit functioned to ensure that business plans complied with applicable spatial planning regulations.
As part of regulatory reform and licensing simplification, the function of the Location Permit is now integrated into the RDTR mechanism and the Spatial Utilization Suitability Confirmation (Kesesuaian Kegiatan Pemanfaatan Ruang – KKPR). Although the term “Location Permit” is no longer used, the substance of spatial control continues to be implemented through RDTR, which is directly connected to the OSS system.
Since the issuance of PP No. 28/2025, the role of RDTR has become more prominent, particularly in the the KKPR issuing process through the OSS-RBA system. This regulation affirms that spatial suitability assessments are conducted based on the digitally integrated RDTR zoning data.
RDTR can be understood as a modern form of business location control, which was previously carried out manually through Location Permits. Assessments are now more transparent, measurable, and system-based, providing greater certainty for businesses. The strengthened role of RDTR now means that spatial planning considerations must be addressed from the earliest stages of business planning.
WHY RDTR MATTERS IN THE LICENSING PROCESS?
RDTR contains detailed zoning regulations at the regency or city level, including land designations for various functions such as commercial, industrial, warehousing, office, residential, and other uses. Each zone stipulates which business activities are permitted, restricted, or prohibited. If the location and planned business activities are in accordance with the RDTR, the KKPR process can generally proceed more smoothly. However, if zoning regulations do not allow the proposed activity, the licensing process may be delayed or rejected, even if other administrative requirements have been fulfilled.
Accordingly, RDTR functions as an “initial filter” in the licensing process, particularly for businesses that require physical use of space, such as building construction, business facilities, or area development.
THE IMPORTANCE OF ALIGNMENT FROM THE PLANNING STAGE
With the increasing integration of spatial planning into the licensing system, RDTR should be treated as a critical component of business planning, alongside KBLI classification and overall licensing strategy. Reviewing RDTR compliance at an early stage helps businesses obtain legal certainty, minimize licensing risks, and support long-term sustainability.
Moores Rowland Indonesia assists businesses in navigating RDTR requirements, KKPR processes, and OSS-RBA. This support is designed to help businesses operate in alignment with regulations in a structured, effective, and sustainable manner.
Contact us for further discussion:
Jakarta: contact-jakarta@moores-rowland.com
Bali: contact-bali@moores-rowland.com
