SLF and PBG Indonesia are mandatory documents for any construction in Bali. If you are a developer investing in a villa, those documents are key to legitimize the construction. A villa built without the authorization and approval of PBG is considered as an illegal construction. Despite some developers still selling involuntarily or voluntarily a project without PBG, this act is a criminal action and can result in penalties or the destruction of the project.
This guide explains the regulations regarding the PBG and SLF Indonesia application and how to obtain the documents.
In 2021, the Building Construction Permit (IMB) was officially replaced by the Building Approval (PBG) and the Certificate of Feasibility (SLF) to streamline construction compliance and safety regulations in Indonesia. Consequently, this shift aims to ensure that all building projects meet technical standards and remain functionally safe, aligning with infrastructure guidelines.
Persetujuan Bangunan Gedung (PBG)
What is a PBG
The PBG can be translated as “Building Approval” in English. This was introduced in Indonesia to replace the IMB (Izin Mendirikan Bangunan – Building Permit) under Government Regulation No. 16 of 2021. The PBG is necessary before starting construction in Indonesia, whether you plan to build in Bali or Lombok.
Once approved, the Building Approval (PBG) remains valid indefinitely, provided the structure, design, and electrical systems of the building continue to comply with the approved PBG regulations. The PBG doesn’t have to be updated as long as the structure of the building is not modified.
The Building Approval (PBG) is an official certification that a building’s design and construction comply with regulations and legal standards by documenting building plans and maintaining records of technical specifications, zoning requirements, structural integrity, and environmental impact assessments.
Who can apply for a PBG?
The PBG can be applied by an Indonesian citizen having rights on a land (SHM) or a company (PT PMA or PT PMDN) having the rights on the land under a HGB title. In other words, a foreigner with a leasehold can’t apply for a PBG and would need to use another local person or obtain a HGB under a company. PT PMA can obtain a HGB on a top of a leasehold and apply for the PBG.
Documents required to obtain a PBG
Before applying for the PBG, the applicant must obtain a few documents. ILA Global Consulting can assist you in applying for the building permit. In order to apply we will need the following documents:
- Architectural drawing
- AutoCAD of the architect
- Documents of the applicant
- AMDAL or UKL UPL if the project is over a certain size
Also read : Guide To Renting Out Legally A Property In Bali And Lombok As Foreigner
AMDAL
In Indonesia, a PT PMA (Foreign-Owned Company) must obtain an AMDAL (Environmental Impact Assessment) for large-scale construction projects that significantly impact the environment. The exact size threshold depends on the project type, as regulated under Government Regulation No. 22 of 2021 on Environmental Protection and Management.
General AMDAL Thresholds for Construction Projects:
- Residential & Commercial Buildings: If the total building area exceeds 5 hectares or the built-up area exceeds 10,000 m².
- Industrial Facilities: If the factory covers more than 5 hectares or has a production capacity above sector-specific limits.
- Hotels & Resorts: If the land area exceeds 5 hectares or has more than 150 rooms, AMDAL is required.
If the project is under the above size, UKL-UPL might be sufficient
UKL UPL
A PT PMA is required to submit a UKL-UPL (Environmental Management & Monitoring Plan) for medium-risk projects, meaning projects that exceed the low-risk SPPL threshold but do not require full AMDAL approval.
The minimum size required for UKL-UPL varies based on the type of project. According to Government Regulation No. 22 of 2021, UKL-UPL is required if a project exceeds the SPPL (Statement of Environmental Commitment) limit, which is typically:
| Project Type for PT PMA | Minimum Size Requiring UKL-UPL |
| Residential & Commercial Buildings | > 2,000 m² built-up area OR > 0.5 hectares land area |
| Hotels & Resorts | > 50 rooms OR > 2 hectares land area |
| Office Buildings | > 4 floors OR > 5,000 m² total floor area |
| Shopping Centers & Malls | > 5,000 m² total floor area |
Steps to apply for PBG
The application process can take time, usually 75 working days. We recommend preparing the documentation and following the steps with ILA to ensure the approval of the PBG. One the first step is the obtention of the PKKPR before moving to the next steps. However the approval and obtention of the PKKPR doesn’t mean the PBG has been approved and the construction can start.
PBG SLF Consultation
- Site Survey
- Creation of OSS Permit
- PKKPR Validation
- PBG Drawings
- Architecture
- Structure
- MEP (Mechanical, Electrical, and Plumbing)
- PBG Technical Specifications
- Architecture
- Structure
- MEP
- Soil Test
- Building Structure Analysis
- Architectural Technical Documents
- MEP Calculations
- SIMBG System Upload
- Assistance and Presentation of documents to the relevant authorities
- Retribution
- PBG issuance
The retribution fee is the last step before the issuance of the PBG in Indonesia. This amount varies in function of the building purpose, design and size. ILA Global Consulting can assist you in applying for the PBG and ensure your building is legally built.
Get professional legal advice for Indonesia
Indonesia’s legal system is complicated, with its many regulations, licences, and special rules for foreigners. Don’t make the mistake of trying to navigate it alone, and get the help of experienced consultants instead.
At ILA, we can help you with intellectual property, corporate law, drafting, reviewing and managing legal documents, navigating commercial transactions and much more.You’re not alone. Reach out today to schedule a free consultation or read more about our legal service.
SLF certificate (Sertifikat Laik Fungsi)
The SLF is the Function Certificate. It is a mandatory approval that verifies a business or residential building meets safety and regulatory standards for its intended use. The SLF remains valid for 20 years for residential properties and 5 years for commercial, industrial, and other building types. To avoid legal issues or operational disruptions, building owners must renew the SLF before it expires to ensure continued compliance with Indonesian regulations.
Categories of SLF
The Sertifikat Laik Fungsi (SLF) is categorized based on building type, function, and scale. Each category determines the requirements, validity period, and renewal process. The SLF is approved depending on the type of building:
| Type of SLF | Purpose |
| SLF for Residential Buildings | Houses, apartments, townhouses, dormitories |
| SLF for Commercial Buildings | Offices, shopping malls, hotels, restaurants |
| SLF for Industrial Buildings | Factories, warehouses, power plants |
| SLF for Public Facilities | Hospitals, schools, religious buildings, government offices |
The size of the building will affect the procedure and how to obtain the SLF. For a building over 500 sqm, additional technical review will be applied, and if the building is done for personal purpose or for corporate purposes or governmental purposes.
Obtention of the SLF
Despite some practice, the SLF is issued once the building is finalized and complements the PBG. In other words, an SLF cannot be legally issued if the PBG (building permit) has not been obtained (except for the building before 2021).
The SLF procedure can start when 70% of the building has been completed, but the delivery of the certificate can be completed only once the building is fully completed, including the electricity connection.
The PBG and SLF are essential parts of the business licence for buyers and operators. A hotel or a villa on Airbnb cannot obtain a licence without the SLF. Those documents are the first ones to ask a developer and to obtain as a business owner to ensure the legality of your investment.
