Every construction project in Bali requires two building permits. The first is the PBG (Persetujuan Bangunan Gedung), your approval to build. You must obtain it before breaking ground. The second is the SLF (Sertifikat Laik Fungsi), your clearance to use the building. It is issued once the completed structure passes inspection.
You need to secure these permits whether you are building new, expanding, or changing the use of an existing property.
This guide explains how the permits work, who can apply, and how foreign investors complete the process in Bali.
Difference Between the SLF and PBG Permit
You may have heard these two terms used interchangeably. However, they are completely separate permits. The differences lie in when you apply for them and what they actually validate.
- PBG permit: Decides what you are allowed to build. It validates structural calculations, design layouts, and initial environmental plans before you begin construction. This document remains valid for the life of the building, assuming you do not alter the structural footprint.
- SLF: Your permission to occupy the building. It proves the finished structure matches your approved plans and is safe for occupancy. You only apply for this permit when your construction is almost finished. For commercial properties, you must renew this certificate periodically to maintain compliance and keep your business running legally.
The two permits are sequential, and one cannot replace the other. A PBG without an eventual SLF leaves you with a building you cannot legally operate. Similarly, an SLF cannot be issued without an approved PBG, because the inspection compares your finished structure against the originally approved drawings.
Here is a side-by-side comparison to help you understand how these two documents differ across key areas.
| Feature | PBG (Persetujuan Bangunan Gedung) | SLF (Sertifikat Laik Fungsi) |
|---|---|---|
| Primary Purpose | Authorizes the commencement of construction, renovation, or expansion | Certifies that the completed building is safe, functional, and ready for occupancy |
| When to Apply | Before any physical construction or site preparation begins | Construction is 70–100% complete |
| Evaluation Focus | Technical drawings, architectural plans, structural integrity calculations, and MEP plans | Physical inspection to verify that the built structure matches the approved PBG plans |
| Validity Period | Indefinite, as long as the building structure and design remain unchanged | 20 years for residential properties, and 5 years for commercial or hospitality properties |
| Commercial Relevance | Required to legally break ground and avoid construction fines | Required to obtain operational business licenses, such as tourism licenses for holiday rentals |
What You Need Before Applying for the PBG
You have to work with three key regulatory layers before and during your construction project. These apply to everyone, whether you are building a private residential home or a commercial property.
1. Spatial Planning Conformity (KKPR)
Before you can apply for a building permit, you must secure the KKPR (Persetujuan Kesesuaian Kegiatan Pemanfaatan Ruang), Bali’s spatial planning approval. It confirms that your intended construction matches the zoning plan of the regency where your land sits.
For commercial projects, the application goes through the Online Single Submission (OSS) system. For private residences, it goes through the local DPMPTSP office (the regency's one-stop licensing centre). In both cases, the relevant authorities will cross-reference your GPS coordinates against the latest zoning maps before issuing the clearance.
Bali uses a colour-coded zoning system that determines whether you can build on each plot. Your project must match the zone of your land for the KKPR to be issued. For a breakdown of each zone and the areas where they apply, see our guide to buying property in Bali.
2. Environmental Impact Assessments (SPPL, UKL-UPL, or AMDAL)
The government requires every construction project to have an environmental clearance based on its scale, risk, and potential impact on Bali's delicate ecosystem.
The table below breaks down the specific thresholds, who issues them, and when you need to apply to keep your project on schedule.
| Environmental Assessment | Thresholds | Issuing Authority | Timeline | Examples |
|---|---|---|---|---|
| SPPL(Low Impact) | Land Area: Strictly under 1 Hectare (10,000 m²) and/or Floor Area: Under 5,000 m² | OSS Portal | Instant Processed digitally during initial business setup immediately after zoning (KKPR) approval. | Single private villas, small homestays, or intimate boutique spaces. |
| UKL-UPL(Medium Impact) | Land Area: 1 to under 5 Hectares and/or Floor Area: 5,000 m² to under 10,000 m² | Regency DLH(Local Environmental Agency, e.g., DLH Badung or Gianyar) | 2 to 4 Weeks Submit after securing your KKPR but before filing for building permit (PBG). Requires a field inspection. | Commercial multi-villa compounds, boutique hotels, beach clubs, and large restaurants. |
| AMDAL (High Impact) | Land Area: 5 Hectares or more and/or Floor Area: 10,000 m² or more *Also applies to any build near eco-sensitive zones. | Provincial DLH / Ministry (Bali Provincial Environmental Agency or Ministry of Environment) | 3 to 6 Months Initiate immediately after KKPR approval. Highly complex process involving rigorous evaluations and public consultations. | Mega-resorts, star-rated hotels, large shopping malls, and projects near coastal or mangrove buffers. |
3. The Digital Management System (SIMBG)
All applications for building approvals in Indonesia go through the SIMBG (Sistem Informasi Manajemen Bangunan Gedung) portal. It works alongside OSS and covers the building permits themselves. Since the two are linked, your OSS profile needs to be in order before the SIMBG applications can move.
The local Dinas PUPR (Public Works and Spatial Planning Office) reviews each application against national building standards (SNI) and the regency's zoning rules. A complete PBG submission typically clears in 14 to 30 working days, provided your documentation is in order. The SLF follows once a site inspection confirms the build matches the approved plans. SIMBG then updates the OSS profile automatically and activates any pending business licenses tied to the property.
For individual leaseholders: Since you don’t hold a corporate profile, the landowner must log into the SIMBG portal using their personal tax and identity details to apply for both permits on your behalf. Having a legally binding lease agreement that obligates the landowner to complete these steps is crucial to protect your investment.
Emerhub can conduct a full review to confirm your compliance route before proceeding with the applications. Schedule a free consultation with our local team via the form below.
Key Requirements to Obtain the PBG and SLF Permits
Under Indonesian law, a foreign individual holding a standard leasehold agreement (Hak Sewa) in their personal name cannot directly apply for a PBG or SLF. Instead, a legal entity or an Indonesian citizen who holds the primary land rights must file the application.
For foreign investors, there are two legal pathways to secure these permits:
- The PT PMA Route: Establish a foreign-owned company (PT PMA) that holds the land under a Hak Guna Bangunan (HGB, or Right to Build) title and files for the permits in its name. Since May 2026, Bali's OSS blocks new PT PMA registrations for low and medium-low risk activities. Therefore, it’s advisable to talk to our team if you want to take this route. Those with existing entities must confirm that KBLIs are aligned with the project and migrated to the KBLI 2025 classification before filing.
- The Landowner Route: If you lease land as an individual under a standard leasehold (Hak Sewa), the Indonesian landowner must apply for the PBG under their name. This requires a legally binding lease agreement that grants you the right to construct on the land and obligates the landowner to cooperate with all permit applications.
Here are the specific document requirements for both applications:
| PBG Application Requirements | SLF Application Requirements |
|---|---|
| Identity and tax documents: company NPWP, NIB, Akta Pendirian (Deed of Establishment), and SK Menkumham (Ministry of Law approval) for the PT PMA route. Indonesian landowner's KTP and NPWP for the landowner route. | Approved PBG certificate and its validated technical attachments |
| Proof of land rights: HGB certificate held by the PT PMA or SHM held by the Indonesian landowner + a notarized lease agreement. | As-built drawings (final technical drawings showing the exact built structure) |
| Approved KKPR spatial planning certificate | Photographic evidence of the completed building from all sides |
| Environmental document (SPPL, UKL-UPL, or AMDAL) | Mechanical, Electrical, and Plumbing (MEP) testing certificates |
| Architectural, structural, and MEP drawings certified by a licensed Indonesian engineer | Independent inspector certification confirming structural safety |
| Structural calculations and soil test reports | Proof of building retribution tax payment |
Tip: Eligibility issues are the most common reason foreign-led projects stall before construction begins in Bali. Whether you need to register a new PT PMA, realign an existing entity's KBLIs, or apply through the Landowner Route, Emerhub handles the due diligence and filings on your behalf.
How to Apply for Building Permits in Bali
The PBG and SLF application process is handled via the SIMBG portal, Indonesia's Building Management Information System. The same portal applies whether you are building as a company or as a private owner. Emerhub can manage the submission and coordinate with the relevant technical teams at each stage. Here is an overview of the process:
- Secure your KKPR through OSS: The process starts with your project details and intended land use, which we submit through the OSS system. If your land sits within an area covered by a Detailed Spatial Plan (RDTR), the confirmation is automatic. Otherwise, the application goes to the local planning office for formal approval (PKKPR).
- Obtain your environmental clearance: We file the SPPL, UKL-UPL, or AMDAL document that matches your project's risk tier. A single residential villa typically files an SPPL, while a multi-villa compound or commercial restaurant requires a UKL-UPL.
- Prepare your technical drawings with a certified team: The drawings must come from a certified team, so we engage a licensed Indonesian architect (IAI) and engineer (SKA) to produce the architectural plans, structural calculations, MEP drawings, and soil test reports. Informal contractor sketches and unsigned drawings are no longer accepted.
- Submit your PBG application: With the documents complete, we file the PBG application with the local Dinas PUPR office.
- Complete the technical verification stage: A panel of technical experts called the Tim Profesi Ahli (TPA) reviews your drawings for structural integrity, fire safety, and zoning compliance. The panel may request revisions before the application moves to approval.
- Pay the retribution and receive your PBG: Once approved, pay the building retribution fee, which varies by regency. Badung, Gianyar, Tabanan, and Denpasar each set their own rates under local regulations (Perda). The system issues your PBG after payment, and construction can begin.
- Construct according to your approved plans: Build exactly to the approved drawings. Any deviation can disqualify you from receiving an SLF later, while serious deviations can trigger demolition orders and fines.
- Apply for your SLF inspection at 70 to 100% completion: Our team submits your as-built drawings, MEP test certificates, and structural safety certification through SIMBG. A government inspector then visits the site to confirm the finished building matches your approved PBG.
- Receive your SLF and activate your business licenses. Once the inspector signs off, the system issues your SLF. Emerhub then uploads it to OSS to activate your operational business licenses, such as a tourism license for villa rentals or a trading license for retail premises.
Emerhub manages the full PBG and SLF application process for foreign investors in Bali. We work directly with local authorities to keep all your submissions on schedule. We can also manage your PT PMA setup, land and lease due diligence, and KBLI compliance for existing entities.
Get in touch with our local team to learn more about how we can support you in Bali.
Frequently asked questions
1. Does a building with an old IMB still need a PBG?
If your building was constructed before 2021 and already has a valid IMB, you do not need to apply for a new PBG immediately. The old IMB remains legally valid as long as the building remains exactly as it was when the permit was issued. However, it no longer applies if you plan to expand the building, perform major renovations, change its use, or apply for new commercial operational licenses. You must update the old permit to a PBG and obtain an SLF before any of these activities can begin.
2. Do I need to update my PBG if I add a room or renovate part of an existing villa?
Any change to your villa's footprint, load-bearing structure, or intended use requires a PBG update and a new SLF for the modified section. This includes adding a room, building an extension, adding a swimming pool, or converting residential space to commercial use. Cosmetic upgrades such as repainting or replacing fixtures do not trigger a new PBG. Borderline cases like adding a kitchen with new gas and plumbing infrastructure are decided by the local Dinas PUPR. Emerhub advisors can verify the steps that apply to your specific situation.
3. Can I apply for the SLF if I do not have a PBG?
You cannot obtain an SLF without first having an approved PBG. The SLF is a certification that verifies your finished physical building matches the technical plans and safety calculations that were approved in your original PBG. If you built a property without a PBG, you must first go through a process to retroactively normalize your building approvals, which often involves technical audits and administrative fines, before you can qualify for an SLF.
4. Can a foreigner apply for a PBG or SLF in their own name?
A foreign individual cannot apply for a PBG or SLF in their personal name. Under Indonesian regulations, building permits must be held by the legal owner of the land rights or the entity with corporate building rights. If you are a foreign investor, you should establish a PT PMA company to secure a Hak Guna Bangunan (HGB) land title, which allows your company to apply for and hold the PBG and SLF directly.