Government Relations in Indonesia
Most projects in Indonesia need approvals from several government bodies, at national, provincial and regency level. We help investors work through that process in the right order, with complete documents and a clear record of every step.
Our work is about process and experience, not connections.
Who Approves What
Indonesia is a decentralised country. Central ministries in Jakarta set national rules and issue some licences, while provinces, regencies (kabupaten) and cities (kota) are responsible for much of the decision-making on land use, building approvals, environmental permits and local licensing.
Business licensing runs through the national Online Single Submission system, known as OSS. The application is digital, but many licences still need checks, documents and site verification from the agency that holds authority over your activity and location. Knowing which agency that is, and what it needs, is most of the work.
These are the bodies our clients deal with most:
BKPM
The Ministry of Investment and Downstream Industry/BKPM runs OSS, licenses foreign-owned PT PMA companies and promotes investment. See our foreign investment guide.
DPMPTSP
Regional one-stop investment and licensing offices at provincial and regency or city level. They handle licences and approvals that fall under regional authority.
BPN (land)
The Ministry of Agrarian Affairs and Spatial Planning / National Land Agency registers land titles such as HGB, and its regional land offices handle title checks, transfers and registration.
PLN (power)
The state electricity company. PLN is not a regulator, but for power-intensive projects its connection process and capacity planning shape the whole timeline. See our data center guide.
What We Do
Government relations, done properly, is careful project management of the approvals process. For each project we:
- Map every licence, permit and approval the project needs, and which agency holds authority over each one.
- Sequence them, because many approvals depend on earlier ones. Spatial planning confirmation, for example, typically comes before environmental and building approvals.
- Prepare and check application documents before submission, so files are complete the first time.
- Coordinate submissions, meetings and site inspections with the agencies involved, through formal channels.
- Track each application and keep a written record of every submission, meeting and response.
- Support community engagement and consultation where the approval process calls for it.
We do this alongside licensed Indonesian legal and tax advisers. Where a filing must be made by a lawyer or a notary, it is.
Led by Two Decades of Experience
Our government relations work is led by Jaques Z. Marbun, Kinnara Capital’s Director for Government & Community Relations. Jaques has more than 20 years of experience working with Indonesian government institutions, across central and regional bodies, on regulatory, land, permitting and investment processes.
That experience is practical: knowing how a process runs in practice, which documents an office expects, where applications usually stall, and how to plan around realistic timelines.
We use the same team and the same approach on our own projects. Kinnara Capital’s development of Saraya Beach Resort in West Lombok has worked with both central and regional government, and our two Indonesian PT PMA companies went through OSS licensing themselves.
Process, Not Connections
International investors are right to be careful about who represents them in front of government. Under the laws of Australia, the United States, the United Kingdom and other countries, a company can be liable for what its agents do overseas. Our approach is built so you can show your own compliance team exactly what was done on your behalf.
Formal channels only
We engage with government through official processes, submissions and meetings. Nothing happens off the record.
Official fees, with receipts
Government charges are paid through official payment channels, with receipts kept on file.
No payments or gifts to officials
We do not offer or make facilitation payments, and we do not give gifts or benefits to officials to influence a decision.
A record you can audit
You receive a written log of submissions, meetings and responses, which you can share with your lawyers, auditors or board.
For Australian Investors
Many of our clients are Australian, and Kinnara Capital has registered companies in Australia as well as in Indonesia, Hong Kong and Singapore. You can check each registration on our buyer protection page.
Australian companies face a specific risk. Since 8 September 2024, the Criminal Code has included an offence of failing to prevent foreign bribery. A company can be liable if an associate, including an agent or contractor, bribes a foreign official for its benefit, unless the company can show it had adequate procedures to prevent it. The Attorney-General’s Department has published guidance on what adequate procedures look like.
Choosing a government relations partner in Indonesia is therefore a compliance decision as well as a commercial one. We are happy to work within your anti-bribery policies, answer your due diligence questions and provide the records your procedures require.
Our government relations work covers Indonesian government. We do not lobby Australian governments on clients’ behalf.
How an Engagement Works
- 1
Scope the project
We confirm what you plan to do, where, and through which company, then identify the business activity codes (KBLI) and approvals involved.
- 2
Build the approvals map
A written plan of every licence and permit, the agency responsible, the documents required, the order of steps and a realistic timeline range.
- 3
Prepare and submit
We prepare and check documents with your legal advisers, then coordinate submissions and meetings with each agency.
- 4
Follow through to completion
We track every application, respond to agency requests and keep you updated, until permits are issued or the project moves to construction with partners such as TSG Construction.
Frequently Asked Questions
Can you guarantee our permits will be approved?
No. Approvals are decisions of the government agencies concerned. What we can do is make sure applications are complete, correctly sequenced and properly followed through, which removes many of the avoidable causes of delay.
Which levels of government do you work with?
Central ministries and agencies in Jakarta, provincial governments, and regency (kabupaten) and city governments, including their regional investment and licensing offices (DPMPTSP) and land offices.
Do you make facilitation payments or give gifts to officials?
No. We engage only through formal channels, government fees are paid through official channels with receipts, and we keep a written record of every interaction on your behalf.
Do you replace our lawyers?
No. We work alongside licensed Indonesian legal and tax advisers. They give legal advice and make the filings that require a lawyer or notary, while we coordinate the overall approvals process.
Can you help with community consultation?
Yes. Some approvals, particularly environmental ones, include consultation with communities near a project. Our team supports that engagement as part of the approvals plan.
Do you offer government relations in Australia?
Our government relations work covers Indonesian government. We support Australian investors in Indonesia, including working within their anti-bribery procedures, but we do not lobby Australian governments.
Related Advisory Services
Data Center Development
Site acquisition, PLN power planning and approvals for data center, colocation and AI compute projects.
Industrial Estates
Finding, assessing and acquiring industrial land and estate lots, with design-and-build through our construction partners.
Foreign Investment & BKPM
PT PMA setup, OSS licensing and working with BKPM investment facilitation for foreign investors entering Indonesia.
Planning a Project That Needs Approvals?
Tell us what you plan to build or operate and where. We’ll outline the approvals involved and how we’d approach them.
Contact Our TeamSources (checked 27 October 2026)
- Kementerian Investasi dan Hilirisasi/BKPM, “Daftar Satuan Kerja (unit functions)”.
- DPMPTSP Provinsi Jawa Timur, “Tupoksi (duties and functions)”.
- SSEK Law Firm, “Indonesia Overhauls Risk-Based Business Licensing with Government Regulation No. 28 of 2025”, 15 August 2025.
- Hukumonline, “Penting! Ini yang Perlu Diperhatikan dalam Proses Pengajuan KKPR Sesuai PP 28/2025”, 23 July 2025.
- Katadata (Antara), “Konsumsi Listrik Data Center yang Dilayani PLN Capai 2.378 GWh”, 26 September 2026.
- Baker McKenzie, “Australia: From 8 September 2024 your company could face criminal liability if it cannot prove that it had adequate procedures to prevent foreign bribery”, 2024.
- Attorney-General’s Department (Australia), “Guidance on adequate procedures to prevent the commission of foreign bribery”, 28 August 2024.
Images: Jakarta skyline at sunset by ambabheg, CC BY 2.0, via Wikimedia Commons
This page is general information, not legal, tax or investment advice. Indonesian regulations change often. We confirm current requirements for each project with licensed Indonesian legal and tax advisers, and no outcome, approval or timeline is guaranteed.