Regulation Watch · Property and Construction · Indonesia. The circular applies nationally to risk-based business licensing in the housing sector under KBLI 68111 where the activity concerns residential development, including landed housing, apartments and mixed developments with a residential function. Authority is allocated to the relevant regency or city, province, or the Ministry of Housing and Settlement Areas according to the development area.
Housing Developers Face New OSS Enforcement Workflow
Circular 06/SE/Dp/2026 operationalizes housing-business approvals, annual compliance evidence, inspections and OSS sanction recommendations, with licence revocation possible after missed cure periods.
- Published
- Directorate General of Settlements Circular 06/SE/Dp/2026 was established and recorded as promulgated on 6 July 2026. The Ministry of Housing and Settlement Areas JDIH lists the circular, its 15-page signed text and its 74-page forms attachment as in force. The underlying Minister Regulation 18/2025 was established and promulgated on 31 December 2025 in State Bulletin 2025 No. 1198.
- Effective
- 6 July 2026 for Circular 06/SE/Dp/2026, based on the establishment and promulgation date in the official JDIH metadata. Minister Regulation 18/2025 has applied since 31 December 2025. Neither instrument provides a general transition period for an operating housing developer.
- Added to Watch
- 7 November 2026
Who is affected
PT PMA and PT PMDN housing and apartment developers, KBLI 68111 businesses, developers of mixed-use projects with a residential function, foreign and Indonesian shareholders, directors and commissioners, landowners and project investors, apartment managers, licensing and OSS teams, project and site teams, finance and accounting teams, public accountants, DPMPTSP offices and regional housing authorities responsible for approvals, reporting, inspection and enforcement.
Practical impact
The circular turns Minister Regulation 18/2025 into a working approval, reporting and enforcement procedure. A developer may need a regional or ministerial confirmation decision for master plans, site plans, apartment subdivision plans, balanced-housing conversion calculations and related revisions. It must also obtain an annual report receipt supported by audited financial statements, debt ratios, cash-flow analysis, PPJB implementation reporting and, for apartments, PPPSRS formation reporting. Compliance reports follow the applicable LKPM period and support the business's OSS supervision profile. Inspectors may conduct physical or virtual routine inspections and unannounced incidental inspections. A proven breach is documented in an inspection report and submitted through the OSS supervision subsystem as a sanction recommendation. Under Minister Regulation 18/2025, sanctions can progress through two 15-working-day warnings, temporary suspension with a 30-working-day cure period, OSS access restriction for up to six months and revocation of the Standard Certificate or NIB.
The Directorate General of Settlements established Circular 06/SE/Dp/2026 on 6 July 2026. The Ministry's official JDIH records the same date as promulgation and lists the instrument as in force. It supplies the forms, filing steps, review periods, inspection records and OSS sanction-recommendation route required to implement Minister Regulation 18/2025 for risk-based housing business licensing.
The business scope starts with KBLI 68111, Real Estate Owned or Leased, when the activity concerns housing. It covers landed housing, apartments and qualifying mixed development with a residential function. A project within one regency or city applies to the local housing authority, a project crossing regency or city boundaries applies at provincial level, and a project crossing provincial boundaries applies to the Ministry.
A confirmation decision can cover a housing master plan or site plan, an apartment subdivision plan, a balanced-housing conversion calculation and revisions to those documents. The authority checks the file, schedules a field review and verifies the documents against actual conditions. A mismatch must be corrected through consultation within three working days. Once the field record confirms compliance, the authority prepares and issues the confirmation decision, including any technical direction on land allocation, building coverage, floor area, green space and infrastructure.
The annual reporting file is separate from the project confirmation. A developer requests a report receipt once each year. The supporting documents include audited financial statements with the stated debt ratios, cash-flow projections or analysis, a report on implementation of the PPJB system and, for apartments, a report on PPPSRS formation. An MBR housing developer is exempt from the requirement to state the three debt ratios, while a landed-housing developer does not submit a PPPSRS report.
A developer must update its report receipt no later than one year after the previous receipt. If the current audited financial statements are not yet available, the circular allows a statement from the licensed public accounting firm confirming that the statements are being prepared. This does not remove the annual filing duty or the need to provide the completed evidence through the follow-up process.
Supervision combines document review with field inspection. The housing compliance report follows the applicable LKPM period, and the regional verification may support the LKPM assessment. Routine inspection can be physical or virtual. Incidental inspection can follow a public complaint, media or social-media information, a government need, a business request, suspected licensing noncompliance, urgent environmental or safety risk, or another indication of unlawful activity. It may occur without advance notice.
Where supervision finds noncompliance, the inspection report records the evidence and compliance history. The recommendation is uploaded to the OSS supervision subsystem, or sent in writing to the competent central or regional authority if OSS cannot receive it. The Ministry coordinates national supervision, regional authorities issue decisions and conduct inspections, and the OSS authority applies the accepted sanction in the system.
Minister Regulation 18/2025 supplies the enforcement ladder. A first warning and a second warning each provide 15 working days. Continued noncompliance can stop activity at the affected location for 30 working days. A licence holder that still does not cure can have OSS access restricted for up to six months, followed by revocation of the Standard Certificate or NIB. The regulation permits sanctions to be imposed in stages or without every intermediate stage, so developers should treat inspection findings and cure notices as immediate project risks.
Late discovery: the circular was issued in July but was not previously recorded in the Regulation Watch ledger. Its official record, signed text and detailed forms now provide a direct primary-source basis for the filing sequence, annual evidence, inspection triggers and sanction workflow. The legal dates remain 31 December 2025 for Minister Regulation 18/2025 and 6 July 2026 for Circular 06/SE/Dp/2026.
Required action
- Confirm whether every KBLI 68111 project falls within the housing-sector scope, including any mixed-use or shopping-centre development that contains a residential function, and identify the competent regency, city, province or ministry authority.
- Create a project-level register for the required confirmation decisions, including master plan, site plan, apartment subdivision plan, balanced-housing conversion calculation, revisions, issuing authority, application date, field-review record and final decision.
- Prepare the annual report-receipt file with audited financial statements, debt-to-current-assets, debt-to-fixed-assets and debt-to-equity ratios, cash-flow analysis, PPJB implementation reporting and PPPSRS formation reporting where applicable.
- Submit the housing-sector compliance report in the same period as the applicable LKPM report, reconcile the two filings and preserve the regional authority's verification because it can support the LKPM assessment.
- Maintain an inspection-ready file containing the NIB, Standard Certificate, KKPR, environmental approval, PBG and SLF status, approved plans, land and construction evidence, marketing and PPJB records, consumer handover records, infrastructure obligations and annual reports.
- Assign an authorised employee or properly documented representative to each filing. For a corporate applicant, a power of attorney may be given only to a permanent employee of the business under the circular's procedure.
- Record every warning, inspection report and OSS notice immediately. Use the first and second 15-working-day cure periods, the 30-working-day suspension cure period and any six-month licence-freeze period as hard escalation deadlines.
- Do not pay an inspection fee or unofficial charge. The circular states that housing-business supervision must not impose any fee or levy on the business.