Regulation Watch · Property and Construction · Indonesia, including small-island tourism, property, marine, agricultural, and other projects in Bali and its surrounding islands.
Small-Island Projects Now Need a KKP Recommendation Through OSS
Permen KKP 13/2026 replaces the 2024 small-island regime with an OSS recommendation process for PT PMA projects, including site verification, spatial and environmental review, land-use limits, a seven-day PNBP payment window, annual reporting, and active enforcement.
- Published
- Established on 10 September and promulgated on 14 September 2026 in State Bulletin 2026 No. 635.
- Effective
- 14 September 2026, the date of promulgation.
- Added to Watch
- 21 September 2026
Who is affected
Foreign investors, PT PMA companies, Indonesian shareholders and partners, directors, developers, resort and tourism operators, marine businesses, landowners and lessors, project financiers, consultants, and government bodies involved in using an island of up to 2,000 km² or its surrounding waters.
Practical impact
A PT PMA planning to use a small island must obtain a Minister of Marine Affairs and Fisheries recommendation through OSS. The review covers RTR or RDTR alignment, coordinates, island size and physical type, land allocation, ecology, local livelihoods and culture, defence and security, and an on-site verification. At least 30% of the island must remain directly controlled by the State, a business may use no more than 70%, and at least 30% of the business-use area must be allocated as green open space. The PMA plan must also address public access, partnership with Indonesian participants, gradual share transfer, and technology transfer. Permen KKP 10/2024 is repealed, while existing PMA small-island permits remain valid until they expire.
Permen KKP 13/2026 was established on 10 September and promulgated on 14 September 2026 as State Bulletin 2026 No. 635. It took effect immediately, repealed Permen KKP 10/2024, and replaced the former PMA small-island permit framework with recommendations issued by the Minister through OSS. A legacy PMA small-island permit obtained before the new rule remains valid only until its existing term ends.
The rule covers islands up to 2,000 km² and links KKP review to the spatial-approval and risk-based licensing process. For PMA use, the applicant must be a limited-liability company. Its file must identify the activity, required area and coordinates, public access, technology transfer, partnership with Indonesian participants, gradual share transfer to Indonesian participants, and ecological, social, economic, cultural, defence, and security considerations. KKP conducts administrative and technical review, including field verification, and must approve or reject a complete application within 14 working days.
Development intensity remains tightly controlled. At least 30% of a small island must be directly controlled by the State, no more than 70% may be used by a business, and at least 30% of the business-use area must be green open space. The project must conform to RTR or RDTR and the regulation's activity matrix based on island area, topography, and typology. The review also protects public sea-to-island access, cultural and religious sites, customary rights, local livelihoods, water capacity, biodiversity, and resilience to disaster and climate impacts.
The recommendation is not a substitute for KKPR, environmental approval, land rights, marine-space approval, PBG or SLF, or the relevant OSS business licence. Where RDTR is missing or not integrated with OSS, or the applicable spatial plan lacks small-island zoning, the KKP recommendation must precede KKPR. Special-area projects may instead require KKP technical consideration, and the same coordination rules apply to PMA use across the 0-to-2,000-km² range.
After approval, OSS issues a PNBP payment order. The applicant has seven calendar days to pay and upload proof; missing that window cancels the approved recommendation. Once issued, the recommendation generally follows the business licence, but lasts no more than two years if spatial approval has not been issued. Holders must report implementation at least annually. KKP's coastal and small-island special police may inspect permits, actual activities, compliance conditions, and impacts, impose administrative measures under the governing laws, and coordinate with investigators where a suspected crime is found.
Required action
- Before acquiring, leasing, financing, or developing an island site, confirm the official island area, coordinates, topography and typology, land status, applicable RTR or RDTR, public and customary access, local economic uses, environmental constraints, and whether the proposed activity is allowed or conditionally allowed under the regulation's island-use matrix.
- For a PT PMA project, submit the recommendation application through OSS with the corporate application, business and activity plan, georeferenced site map, requested area, public-access plan, technology-transfer plan, Indonesian-partnership plan, gradual share-transfer plan, and the ecological, social, economic, and security assessment.
- Design the site plan so at least 30% of the island stays directly controlled by the State, total business use does not exceed 70%, and at least 30% of the area used by the business remains green open space; do not assume ownership or a lease overrides these limits.
- Coordinate the recommendation with KKPR, environmental approval, land rights, marine-space approval where applicable, PBG or SLF, OSS risk-based licensing, and sector permits. Where RDTR is unavailable or not integrated with OSS, obtain the KKP recommendation before KKPR is issued.
- After approval, pay the ordered PNBP within seven calendar days and upload proof through OSS; otherwise the approved recommendation is automatically cancelled.
- Calendar annual implementation reporting to the Minister, preserve evidence that the actual project matches the recommendation and its conditions, and prepare for field inspection by the coastal and small-island special police.
- For an existing project, verify whether it holds a still-valid legacy PMA small-island permit or must enter the new recommendation route, and do not rely on Permen KKP 10/2024 for a new application after 14 September 2026.