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Andi Refandi
Andi serves as a Senior Account Executive on Emerhub’s global team.
Are you a foreign entrepreneur looking to invest in the Bali construction and real estate industry?
The Indonesian government has recently updated building process regulations, which previously consisted of one permit that applied to multiple scenarios, into a more comprehensive system of acquiring different permits for specific uses to offer better flexibility.
This article will serve as your guide to navigating the building approval (PBG) and function certificate (SLF) building permit regulations that have been put in place for Bali’s real estate market.
A transition away from the previous IMB permit for Bali construction projects
The Izin Mendirikan Bangunan (IMB) was previously the standard building permit available for Bali construction projects. It focused primarily on administrative permissions for construction. The IMB would apply to each commercial and residential construction project step.
In 2021, it was decided to transition away from the IMB and shift to Perizinan Bangunan Gedung (PBG) and Sertifikat Laik Fungsi (SLF). This transition emphasizes ensuring that building projects stay technically compliant and functionally safe.
By dividing the IMB permit, which had multiple purposes and uses, into separate, multi-faceted permits that focus on more specific areas of the building process, the Indonesian government has created a more thorough and efficient way of regulating real estate development in Bali.
Building approval through the PBG permit
What is the PBG?
The PBG permit is also known as the building approval. You need this before starting construction, initiating renovations, and maintenance of buildings. Once the permit has been issued, it has a lifetime validity as long as the established building retains its structural, design, and electrical structures according to the PBG issued.
One of the most significant changes that has come from the transition to the PBG is that under the former IMB permit, buildings were restricted to a single function. In contrast, the new regulations allow the classification of multiple related purposes for a building project.
The PBG certifies that a building’s design and construction plan adhere to the most up-to-date safety standards by fulfilling the following purposes:
- Ensuring that construction is carried out according to legal safety guidelines
- Providing a record of the building plans (technical details, zoning regulations, structural and environmental assessments)
- Certifying the safety, health, comfort, and convenience of the building occupants through the establishment of project-specific standards.
Requirements for compliance with Bali construction regulations
The PBG is an essential document for any building project in Bali and must be issued before conducting and initiating any construction work. You must ensure strict compliance of your project with building planning regulations to avoid sanctions:
- Building layout must meet requirements
- Building reliability must be up to the Indonesian code
- Your project must have had a prototype design before commencing construction
Emerhub’s team of experts can ensure that your project remains compliant throughout the construction process. For a more in-depth view of this process, be sure to read our article on how to build a villa in Bali as a foreigner.
Ensure building functionality with the SLF certificate
What is the SLF?
The SLF certificate is also referred to as the function certification, as it confirms that a business or residential building functions according to the intended purpose. The SLF is valid for 20 years for residential houses and 5 years for other types of buildings. Keep in mind that if the SLF expires, it must be renewed before the building’s use can continue.
The intended purpose of a building in Bali is divided into the following categories:
- Residential
- Business (Villas, Row houses, apartments, etc.)
- Religious
- Cultural
- Social
- Special
The SLF also compliments the PBG permit by assessing whether construction aligns with the area-specific spatial, zoning plans, and the PBG issued. It is required for buildings operating in specific zoning areas; therefore, requirements can vary depending on your project.
Requirements for compliance
The SLF is important for ensuring that a building complies with local regulations and zone-specific requirements. Mainly, the local government will look at whether or not your project would have an environmental impact or an impact on the local community, depending on the specific type of business development.
For a building to be considered SLF compliant, you will also need to demonstrate that it meets necessary safety standards for occupants regarding air quality, water, waste management, etc. This implies adequate construction and arrangements to ensure that the building meets the designated function.
Failure to comply with the requirements, or if you do not acquire the SLF, can result in several sanctions, ranging from construction restrictions and suspension, orders to do adjustments to the building, all the way to building demolition orders.
Acquire building approval through Emerhub’s Building application service
Prospective builders will need to submit multiple documents to the Building Management Information System (SIMBG) which was established by the Ministry of Public Works and Public Housing (PUPR) to build and operate a business:
- Acquire land
- Choose a licensed architect
- Prepare zoning and building plans
- Acquire a construction firm
- Apply for PBG
- Begin construction
- Once construction is complete, apply for an SLF certificate
- Upon acquiring SLF, building operations can begin
Remember that the requirements for obtaining building permits in Bali will vary depending on the type of project and location. While the PBG can be obtained anytime during the construction, it can ensure compliance from the start. The SLF must be acquired after construction is finished to start business operations.
Emerhub’s building permit application service offers you a comprehensive solution to getting your developments started and ensuring full project compliance. If you want to order a PBG or SLF certificate for your Bali construction project, contact us via the form below and we’ll put you in touch with one of our advisors!
