Utilization of Small Islands and Coastal Area Permit, What to do?

A permit for the utilization of small islands and coastal areas is an official authorization granted by the Ministry of Marine Affairs and Fisheries (KKP) or provincial authorities to individuals or companies.

Owning this specific permit will you to carry out specific activities in small islands (defined as islands smaller than 2,000 km²) and coastal zones. The primary objective of this permit is to ensure that any use of thesesensitive areas is sustainable, environmentally responsible, and socially equitable.

Business Activities That Require a Permit

• Marine tourism: development of resorts, hotels, and marinas.

• Aquaculture and fisheries: fish farms, floating net cages, and coastal ponds.

• Mining and energy: offshore oil & gas exploration, sand mining, and coastal power plants.

• Industrial or port development: construction of factories or harbours in coastal areas.

• Real estate or reclamation: housing projects on small islands or reclaimed coasts.

Required Permits and Approvals

To conduct these activities legally, business may need to secure several key approvals:

1. Marine Spatial Use Approval (KKPRL)

o Required for any business activity in marine and coastal spaces (including small islands).

o Issued by the Ministry of Marine Affairs and Fisheries (KKP) or provincial authorities.

2. Location Permit & Environmental Permit

o Required under the risk-based licensing system (OSS RBA).

o May include:

- Environmental impact assessment (AMDAL) for high risk activities

- UKL-UPL (Environmental Management and Monitoring Efforts) formoderate risk activities

3. Permit for Use of Outermost Small Islands

o Obligatory for projects located on islands near Indonesia’s international maritime borders, as governed by Law No. 1 of 2014

Obligations for Permit Holders

• Avoid significant disruption to natural ecosystems.

• Reserve sufficient portion of the project area for conservation purposes.

• Engage local communities and provide economic benefits.

• Rehabilitate or restore any environmental damage caused by project activities

• Submit regular reports on operations and their environmental impact

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