Permits: PBG & SLF

Building permits in Bali: PBG and SLF

To build a villa in Bali you need a building approval (PBG), which replaced the old IMB in 2021, and before the building is used it needs a certificate of fitness for use (SLF). Both follow a spatial suitability approval (KKPR) and environmental approval, and are processed electronically through OSS and the SIMBG system managed by the regency. ICM plans and coordinates the permit path together with the architect and engineers.

Who this is for: Investors and owners building or renovating a villa or development in Bali Jurisdiction: Republic of Indonesia (Government Regulation 16/2021 and 28/2025); permits issued by the regency or city government in Bali Updated:

The two permits in plain terms

  • PBG (Persetujuan Bangunan Gedung) — approval to build according to technical drawings that meet building standards. It replaced the IMB under Government Regulation 16 of 2021.
  • SLF (Sertifikat Laik Fungsi) — certificate that the completed building is fit for its intended use. Required before a building is occupied or used for business.

The sequence for a villa

Under Government Regulation 28 of 2025 on risk-based licensing, the basic approvals come in this order:

  1. KKPR — spatial suitability: the activity fits the zoning of the plot. See land and zoning checks.
  2. Environmental approval — level depends on the size and impact of the project.
  3. PBG — submitted through SIMBG with architectural, structural and MEP drawings, reviewed by the regency’s technical team.
  4. Construction — built according to the approved drawings, with inspections.
  5. SLF — issued after inspection of the completed building.

For a business, these approvals must be in place for the business registration (NIB) and licence to become effective.

What goes wrong

  • Drawings that do not match the zone — coverage ratio, height or setbacks exceeded.
  • Building changes during construction that are not reflected in the approved PBG, which later block the SLF.
  • Permits left to the contractor without anyone checking scope and responsibility.
  • Buying a finished villa without SLF, then discovering it cannot be licensed as a rental.

Sanctions under the Building Law include written warnings, stop-work orders, freezing or revoking the PBG or SLF, and demolition orders. Local governments in Bali have sealed unlicensed buildings.

How ICM manages permits

  • Check zoning and KKPR feasibility before design is finalised.
  • Brief the architect and engineers so drawings are prepared for approval, not only for the client.
  • Coordinate submission in SIMBG and follow up with the regency.
  • During construction, control that changes are approved before they are built.
  • Organise the inspections and documentation for SLF at completion.

Permits are part of our construction project management and development management scope, and can also be engaged on their own.

Frequently asked questions

Is IMB still valid?

IMB was replaced by PBG under Government Regulation 16 of 2021, in force since 2 February 2021. Buildings with an IMB issued before then generally keep it; new construction requires PBG.

Can I start building while the PBG is in process?

No. Building without an approved PBG exposes the project to stop-work orders, sealing and, in serious cases, demolition orders.

Why does SLF matter for a rental villa?

Under the risk-based licensing rules, the basic approvals — including PBG and SLF — must be in place for a business licence to become effective. A villa without SLF cannot be licensed properly for rental.