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Indonesian Omnibus Bill: Implementation Regulation related to spatial Planning and Settlement of Differences

In 2020 the Indonesian government formulated a law that was considered a breakthrough in advancing the domestic economy, namely the Omnibus Bill. The Omnibus Bill amended many regulations, which was previously a non-conducive environment for doing business in Indonesia. One of the regulations amended in the omnibus bill is the regulation on spatial planning and zoning. The amendment aims to simplify the process to issue permits related to zoning.

To implement the changes made through the OmnibusBill, on February 2, 2021, the Indonesian Government enacted several implementing regulations. Among them are Government Regulation Number 21 of 2021 concerning Spatial Planning(“GR concerning Spatial Planning'”) and Government Regulation Number 43 of 2021 concerning Settlement of Differences Between Zoning Regulations, Licenses and Land Rights (“GR concerning Settlement of Differences”). In the two implementing regulations, there are further explanations regarding zoning permits and settlement of land differences as contained in the Omnibus bill.

GR concerning Spatial Planning
In GR Concerning Spatial Planning, the Confirmation of spatial utilization as contained in the Omnibus Bill is further explained. Confirmation of spatial utilization serves as a confirmation that the land use is in accordance with the spatial plan. Before the Omnibus Bill was promulgated, the land use permit served as a document affirming that the land in use was in accordance with the spatial plan.

Confirmation of space utilization is obtained as part of the process to obtain a business license through an integrated electronic licensing system known as Online Single Service (OSS). After bringing into existence, the GR concerning Spatial Planning, it is now followed that in order to facilitate the process of getting a confirmation of spatial use, all spatial plans prepared by the local government are to be integrated into the OSS platform and can be accessed by anyone via the internet.

The application process for confirmation of space utilization with regard to GR Concerning Spatial Planning is implemented through OSS. In the OSS, the proposed buyer of the land will provide information on land coordinates, area size, and information about land ownership. After which, the system will compare the information provided by the prospective buyer with the spatial plan contained in the OSS database. If the land can be utilized, a confirmation for space utilization will be issued. In the details of confirmation of space utilization, it contains information such as, the type of land use that has been approved, the provisions for building spatial planning, and few other details. After the confirmation of space utilization is published, the prospective buyer of the land will further the application process for a business license. After the business license is issued, the land can be utilized. Since GR concerning Spatial Planning has been promulgated recently, and in case OSS has not been able to issue a confirmation of space utilization, then a formal request for confirmation of space utilization must be made to the Ministry of Agrarian Affairs and Spatial Planning until OSS can issue a confirmation of space utilization.

GR concerning Settlement of Differences
GR concerning Settlement of Differences regulates the procedure for resolving mismatches among provincial spatial plans, district/city spatial plans, forest area regulations, and land permits or certificates. With the promulgation of GR concerning the Settlement of Differences, if there are differences between provincial spatial plans, district/city spatial plans, regulations that determine forest areas, or land permits and/or certificates are contradictory to one of the other three documents mentioned above, GR concerning the Settlement of Differences specifies in detail on which documents need to be adjusted. GR concerning the Settlement of Differences also stipulates that to address the mismatch between the provincial spatial plan and district/city spatial planning, the provincial spatial plan will be revised no later than 18 months after the Minister stipulates.

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