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A Complete Guide to Building Permits in Bali

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Bali is well-known as a tourist hotspot and a hub for international business, driven by Indonesia’s robust economy. Recently, it has also become a prime location for real estate development. The Indonesian government has updated its building regulations, transitioning from a single permit system to a more detailed approach requiring different permits for specific purposes. This guide will help you understand the new building approval (PBG) and function certificate (SLF) regulations in Indonesia.

Shifting from the Previous IMB Permit

Before 2021, the Izin Mendirikan Bangunan (IMB) was the standard permit for all construction projects in Indonesia, covering administrative permissions for both commercial and residential builds. In 2021, the government replaced the IMB with the Perizinan Bangunan Gedung (PBG) and Sertifikat Laik Fungsi (SLF) to ensure that building projects are both technically compliant and functionally safe.

By separating the IMB into specific permits, the government has created a more effective and detailed regulation system for real estate development in Bali.

Understanding the PBG Permit

What is the PBG? The PBG, or building approval permit, is necessary for starting construction, renovations, and building maintenance. Once issued, the PBG remains valid for the lifetime of the building, provided it retains its original structural, design, and electrical integrity as outlined in the permit.

A key change with the PBG is the ability to designate multiple related functions within a single building project, unlike the IMB, which restricted buildings to a single function.

PBG Compliance Requirements:

  • Ensure construction adheres to legal safety standards.
  • Maintain records of building plans, including technical details, zoning regulations, and environmental assessments.
  • Certify the safety, health, comfort, and convenience of occupants.

To comply with PBG regulations:

  • Building layout must meet specific requirements.
  • Building reliability must conform to Indonesian codes.
  • A prototype design should be prepared before starting construction.

Emerhub’s experts can assist in ensuring your project remains compliant throughout the construction process. For more detailed guidance, refer to our article on building a villa in Bali as a foreigner.

Ensuring Building Functionality with the SLF Certificate

What is the SLF? The SLF, or function certification, verifies that a building is used as intended. The SLF is valid for 20 years for residential buildings and 5 years for other types of structures. It must be renewed upon expiration to continue using the building.

Intended Purposes:

  • Residential
  • Business (e.g., villas, row houses, apartments)
  • Religious
  • Cultural
  • Social
  • Special

The SLF ensures that the building’s construction complies with area-specific spatial and zoning plans and the PBG. It is required for buildings in specific zones, with compliance requirements varying by project.

SLF Compliance Requirements:

  • Demonstrate environmental and community impact compliance.
  • Meet safety standards for air quality, water, waste management, and overall occupant safety.

Failure to comply with SLF requirements can result in sanctions, from construction restrictions to demolition orders.

Acquiring Building Approval Through Emerhub’s Services

Builders need to submit multiple documents to the Building Management Information System (SIMBG), managed by the Ministry of Public Works and Public Housing (PUPR), to build and operate a business:

  1. Acquire land.
  2. Choose a licensed architect.
  3. Prepare zoning and building plans.
  4. Hire a construction firm.
  5. Apply for the PBG.
  6. Begin construction.
  7. Apply for the SLF upon completion.
  8. Start building operations after obtaining the SLF.

Requirements for building permits in Bali vary by project type and location. The PBG ensures compliance from the start, while the SLF is necessary after construction to begin operations.

The Agency Bali provides a comprehensive building permit application service to help you start and ensure compliance with your developments. Contact us to connect with one of our advisors!