We study the fixed-time spatial covariance of the KPZ equation with flat initial profile. Using Malliavin calculus and a Clark-Ocone representation, we show that as $|x|\to\infty$, $\mathrm{Cov}[h(t,x),h(t,0)]$ is governed by a boundary-layer regime near the initial time and satisfies $\mathrm{Cov}[h(t,x),h(t,0)] \sim κ(t) \int_0^t p_{2r}(x) dr = \frac{2κ(t)}{\sqrtπ}t^{3/2}|x|^{-2}\exp\left(-\frac{x^2}{4t}\right),$ as $|x|\to\infty$, where $κ(t) = \big(\mathbb{E}[Z(t,0)^{-1}]\big)^2$, $Z$ is the flat stochastic heat equation solution, and $p_t$ is the one-dimensional heat kernel. In sharp contrast with the narrow-wedge regime, where Gu-Pu (2025, Theorem 1.1) proved that for each fixed $t>0$, $\mathrm{Cov}\left[h^{\mathrm{nw}}(t,x),h^{\mathrm{nw}}(t,0)\right]\sim \frac{t}{|x|},$ as $|x|\to\infty$, the flat initial profile exhibits Gaussian decay, yielding, to the best of our knowledge, the first exact spatial covariance asymptotic for the KPZ equation under flat initial data. We also establish an explicit closed-form formula for the second moment of the continuum directed random polymer partition function.