PBG Building Permits for Bali Villas: What Buyers Must Know

The PBG (Persetujuan Bangunan Gedung) is the building approval a developer must hold before starting construction in Indonesia. If you are buying off-plan in Bali, confirming the PBG exists and matches the unit you are purchasing is one of the most consequential due diligence checks you can make.

Indonesia retired the old IMB (Izin Mendirikan Bangunan) building licence in 2021 under Government Regulation No. 16 of 2021 (PP 16/2021), which implemented the Job Creation Law (Law No. 11 of 2020) for the construction sector. The old IMB was a discretionary administrative licence; the PBG is a standards-based approval issued when a design meets Indonesia's national technical building standards (NSPK). A PBG carries lifetime validity once issued. Applications go through the government's SIMBG portal, run by the Ministry of Public Works, with a statutory processing time of 28 working days from a complete submission. Before a developer can file for a PBG, they need a KKPR (zoning conformity approval) confirming the land is in a permitted tourism or residential zone and not in an agricultural green zone.

A second document, the SLF (Sertifikat Laik Fungsi), must be in hand at handover. The SLF is issued after construction is complete, once a government inspector confirms the finished structure, fire systems, and electrical and plumbing work match the approved PBG and meet safety standards. Without an SLF, the villa cannot be legally occupied, cannot be listed on short-term rental platforms, and cannot hold a Pondok Wisata or villa accommodation licence. For rental-use villas, the SLF is valid for five years before renewal is required.

Foreigners cannot hold a PBG personally. A legally structured Bali villa must show the PBG in the name of the developer's PT PMA, which holds an HGB (Hak Guna Bangunan) land right over the plot. You or your lawyer can verify the permit number directly on the SIMBG portal. See our full due diligence checklist for the complete list of documents to request before signing.

Enforcement has become concrete. In July 2025, authorities demolished 48 structures at Bingin Beach, Uluwatu, after a provincial inspection found they lacked valid permits. Bali Gubernatorial Decree No. 5 of 2025 prohibits new villa construction on rice fields, and Regional Regulation No. 4 of 2026 made agricultural land conversion a criminal offence with penalties up to five years in prison. For an off-plan buyer, the commercial risk is direct: multiple Bali agencies report that resale buyers demand 40 to 50 percent off the price of a property that cannot produce a clean permit chain.

When you sign a PPJB (binding sale agreement), ask your notary to check the KKPR and PBG documents before you sign, not after construction ends. The contract should name delivery with a valid PBG and an issued SLF as a developer obligation, not a best-efforts promise.