Permits and Documents Needed to Build a Property in Indonesia (Bali) 

img Adiel Bukitvista | January 8, 2024

How do you acquire building permits & legal registration?

Projasa, a legal consultant expert, recently had a chat with Bukit Vista to share some insights and counsel regarding building and property registration in Bali. We talked about a list of topics with Panji – a projection permit consultant in Bali, for Badung, Denpasar, and Gianyar.
Below are some of the topics we discuss in more detail.

Play Video about bali villa construction & building permit documents

What is PBG and SLF?

Under government rules for building permits and certificates, documents will have to be completed before your building. Izin Persetujuan Bangunan Gedung (PBG) and Sertifikat Laik Fungsi (SLF) are those documents. These building permits and certificates are issued by the local government to ensure that a building is constructed according to the approved plans and is safe for occupancy.

Persetujuan Bangunan Gedung  (PBG) is a permit granted by the local government or central government to owners for building new structures, changing, expanding, reducing, and/or maintaining existing buildings in accordance with applicable technical standards.

Sertifikat Laik Fungsi (SLF) is a certificate granted by local government or central government to declare the proper function of the building before the building is used.

Below is an overview of how to obtain them:

How to issue PBG and SLF?

  1. Obtain the necessary building permits: Before construction begins, you must obtain the necessary building permits from the local government. These permits will vary depending on the location and size of the building. You may need to submit architectural plans, engineering drawings, and other supporting documents to obtain the necessary permits.

  2. Submit a request for PBG to the local government. This request must include documentation such as architectural plans, engineering drawings, and proof of compliance with building codes and regulations.

  3. Inspection: The local government will conduct an inspection of the building to ensure that it has been constructed according to the approved plans and meets all building codes and regulations.

  4. Issuance of SLF: If the inspection is successful, the local government will issue a Sertifikat Laik Fungsi (SLF), which certifies that the building is safe for occupancy.

  5. Construct the building: Once you have obtained the necessary permits, you can begin construction of the building.
building permits : pbg slf procedure

What happens after the construction is finished?

After your property’s PBG and SLF are done, then you have to process the other licenses, including a business license. All processes will be conducted in Online Single Permission (OSS) for Nomor Induk Berusaha (NIB). This depends on your business type.

If you have a restaurant, you have to process your alcohol license and reservation license. If you are an accommodation or a villa owner, you have to upload the PBG and SLF first, and then the operational license should be granted after. Other permits or license to rent property include :

  • Building Permit (Izin Mendirikan Bangunan or IMB): This permit is required for any new building construction or renovation work. It is issued by the local government and ensures that the building is constructed according to the approved plans and meets all building codes and regulations.
  • Property Ownership Certificate (Sertifikat Hak Milik): This certificate proves that the landlord or property owner has legal ownership of the property.
  • Tax Identification Number (Nomor Pokok Wajib Pajak or NPWP): Landlords must obtain an NPWP from the tax office to pay taxes on rental income.
  • Business License (Izin Usaha): A business license is required if the landlord or property owner is renting out more than one property or if the rental income exceeds a certain threshold’s.
building permits : pbg slf procedure

How can Projasa helps future property owners? 

Porjasa has many features and services to offer. Projasa could help with the process of issuing PBG and SLF correctly. Most importantly, the land the owners purchase should be in the right area, so the PBG and SLF could be received well by the government. Projasa could help make sure that owners are purchasing lands in the correct area, complete the requirement, and then make the blueprint sketch. They can also help with the submission to the government.

Our community experts - Projasa - can help issue BPG & SLF

If you want to learn more about rental property legal information, check out our page. We partner with local legal experts and services to update us on the current legal landscape of rental property. Find out how to start your rental business in Bali with a trusted partner.

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