Regulation Watch · Property and Construction · Indonesia. The regulation applies to the use of islands of up to 2,000 km2 and their surrounding waters. Its PMA route applies to foreign-investment businesses in the form of an Indonesian limited-liability company, including tourism, marine-cultivation, fisheries, agriculture, livestock, property and infrastructure projects on small islands. It is directly relevant to Bali and its offshore islands but is not Bali-specific.
Small-Island PMA Projects Move to a New OSS Recommendation Route
Permen KP 13/2026 replaces the former stand-alone PMA small-island permit with a ministerial recommendation processed through OSS and links it to spatial approval, business-licence validity, annual reporting and direct compliance supervision.
- Published
- Established on 10 September and promulgated on 14 September 2026 in State Bulletin 2026 No. 635. The official KKP JDIH lists the regulation as in force and supplies the signed 50-page text and technical study. The instrument was surfaced in this Regulation Watch review on 8 October 2026.
- Effective
- 14 September 2026, the date of promulgation. Permen KP 10/2024 was revoked that day, while an existing PMA Small-Island Utilization Permit remains valid until its stated expiry.
- Added to Watch
- 8 October 2026
Who is affected
PT PMA investors, foreign shareholders and directors, Indonesian partners, developers, tourism and hospitality operators, marine and fisheries businesses, property owners and land-right holders, project companies, lenders, acquirers and advisers involved in the use or development of a small island or its surrounding waters.
Practical impact
A PT PMA planning to use a small island now applies through OSS for a Minister of Marine Affairs and Fisheries Recommendation rather than the former stand-alone PMA utilization permit. The recommendation forms part of the spatial and risk-based licensing chain: depending on the applicable RDTR, RTR and special-area status, it must be obtained before the spatial-utilization approval or a ministry technical consideration is required before risk-based licensing. The rule retains the maximum 70% business-use cap and requires at least 30% of the utilized land to remain green open space. It also introduces a 14-working-day decision period after a complete application, a seven-calendar-day PNBP payment deadline, validity tied to the business licence, annual reporting and express field supervision.
The Minister of Marine Affairs and Fisheries established Permen KP 13/2026 on 10 September 2026. It was promulgated in State Bulletin 2026 No. 635 and took effect on 14 September, replacing Permen KP 10/2024. KKP's official technical study explains that the revision aligns the small-island regime with Government Regulation 28/2025 on risk-based business licensing and changes the status and sequence of the approvals.
For a foreign-investment project, the former Izin Pemanfaatan Pulau-Pulau Kecil dalam rangka PMA is replaced by a Rekomendasi Pemanfaatan Pulau-Pulau Kecil dalam rangka PMA. The applicant must be an Indonesian limited-liability company and apply to the Minister through OSS. The recommendation remains compulsory for PMA use of islands up to 2,000 km2; Article 12 coordinates it with RDTR, RTR, spatial-utilization approval and the special treatment of designated economic, industrial, authority-managed and upstream oil-and-gas areas.
The PMA dossier is operational rather than merely corporate. It must explain the activity and required area, show latitude and longitude coordinates, and include plans for public access, technology transfer, partnership with an Indonesian participant and gradual share transfer to an Indonesian participant. It must also address ecological, social-cultural, economic, defence and security factors. KKP carries out an administrative and technical assessment, including field verification, and must approve or reject a complete application within 14 working days.
Approval does not finish the process. KKP issues a PNBP payment order through OSS, and the company has seven calendar days to pay and upload proof. If it misses that period, the approved recommendation is cancelled. The recommendation normally runs until the associated business licence expires, but it is limited to two years when the spatial-utilization approval has not yet been issued.
The spatial safeguards remain central. At least 30% of the island must remain under direct State control, no more than 70% may be used by a business, and at least 30% of that business-use area must be green open space. Plans must also consider public access, land status, customary rights, local livelihoods, water capacity, biodiversity, climate and disaster vulnerability and environmental effects. The appendix then classifies activities by island size, topography and type as permitted, conditionally permitted or prohibited.
Compliance continues after approval. PMA and qualifying domestic businesses must report implementation annually and whenever additionally requested. KKP may coordinate monitoring and field inspections with ministries and local government. Its specialist coastal and small-island police may inspect whether the recommendation is valid, whether the actual activity matches it and whether its obligations and environmental controls are being met, with administrative action or criminal coordination available for suspected breaches.
The transition is narrow. A PMA Small-Island Utilization Permit already held before 14 September remains effective until its existing term ends; the regulation does not grant a fresh term or preserve the old route for a renewal or new project. Existing projects should therefore use the permit's expiry as the control date and prepare the OSS recommendation, spatial and business-licensing sequence early.
Late discovery: Permen KP 13/2026 was promulgated in September but was not previously recorded in the Regulation Watch ledger. KKP's official index, signed text and technical study now provide the complete primary-source basis for treating the new recommendation and supervision structure as a material investor update.
Required action
- Screen every acquisition, lease, development and operating site to confirm the island's land area, topography and island type, and map the proposed activity against the permitted, conditionally permitted and prohibited activities in the regulation's appendix.
- For a new PT PMA project, prepare the OSS recommendation application with the business plan, georeferenced site map, proposed public access, technology-transfer plan, partnership with an Indonesian participant, gradual share-transfer plan and ecological, social, economic, defence and security assessment.
- Reconcile the recommendation route with the site's RDTR or RTR, OSS integration and special-area status. Where Article 12 applies, obtain the recommendation before the spatial-utilization approval; for a qualifying special area, confirm that the licensing authority obtains KKP's technical consideration.
- Check the land plan against the continuing limits: at least 30% of the island must remain under direct State control, no more than 70% may be used by the business, and at least 30% of the business-use area must be allocated as green open space. Preserve public access and local-community, customary, livelihood and environmental protections in the plan and operating controls.
- Pay the assessed PNBP and upload proof through OSS within seven calendar days after the payment order. Missing that period cancels the approved recommendation.
- Calendar the recommendation term against the spatial approval and business licence. If the spatial-utilization approval has not been issued, the recommendation lasts no more than two years; once linked to licensing, it runs only until the business licence expires.
- Submit the utilization implementation report to the Minister once each year and when additionally requested, and maintain evidence that the actual footprint, activity, conditions and environmental and community commitments match the recommendation.
- For an existing PMA Small-Island Utilization Permit issued before 14 September 2026, retain the permit and confirm its expiry. It remains valid only until its existing expiry date; plan the transition to the new recommendation route before renewal, material expansion or the next licensing action.