If you're planning to build in Bali, permits will come up early — and they should. The Indonesian building permit system has changed significantly in recent years, and there's still a lot of outdated information circulating about what's required, what the process looks like, and how long it takes. 

This post covers what you actually need to know: what PBG and SLF are, when you need them, how the process works, and what happens if you skip them.  

Until a few years ago, the primary building permit in Indonesia was the IMB — Izin Mendirikan Bangunan, or Building Construction Permit. If you've done any research on building in Bali and keep seeing IMB referenced, you're looking at older information. 

In 2021, Indonesia introduced a new system under Government Regulation No. 16 of 2021. The IMB was replaced by two separate instruments: 

These two permits cover different stages of the building process and serve different purposes. Understanding both is essential before you start.
 
 

PBG — Persetujuan Bangunan Gedung — is the approval you need before construction begins. It replaced the IMB as the primary pre-construction permit.
 
To obtain a PBG, you submit architectural and technical drawings of your proposed building to the relevant local authority. The drawings are assessed for compliance with:
 

This is why an architect is a prerequisite — the PBG submission requires properly prepared technical documentation, not just a sketch or concept. The drawings need to demonstrate compliance with local regulations before approval is granted.
 
When do you need it? Before construction starts. Building without a PBG carries legal risk and can complicate or block the SLF process later.
 
 

SLF — Sertifikat Laik Fungsi — is the certificate issued after construction is completed. It confirms that the building has been built in accordance with the approved PBG and is safe and fit for its intended use.
 
Think of it as the building's certificate of occupancy. Without it, a building technically cannot be legally operated — which matters particularly for hospitality properties, where the SLF is often required as part of the broader licensing process for guesthouses, villas, and hotels.
 
When do you need it? After construction is completed, before the building is formally put into use or operated commercially. For residential properties, enforcement varies. For hospitality and commercial properties, it is increasingly required and checked.
 
 

Here's a simplified overview of the sequence:
 
1. Design and technical documentation Your architect prepares the drawings required for PBG submission — site plan, floor plans, elevations, sections, and technical specifications. These need to reflect what will actually be built, so they're typically prepared during or after the Design Development stage.

2. PBG application Submitted through the OSS (Online Single Submission) system — Indonesia's integrated business and permit platform. The application includes your technical drawings, land ownership documentation, and building data. Local authorities review the submission for regulatory compliance.

3. PBG approval Once approved, you're cleared to begin construction. Timeline varies — anywhere from a few weeks to several months depending on location, complexity, and completeness of your submission. Submitting complete, accurate documentation is the single biggest factor in reducing processing time.

4. Construction You build in accordance with the approved drawings. Significant deviations from the approved design can create problems at the SLF stage, so managing changes carefully during construction matters.

5. SLF application Once construction is complete, you apply for the SLF. This involves an inspection of the completed building to verify that it matches the approved PBG. Your architect and relevant consultants may need to provide statements of compliance.

6. SLF issuance Once the inspection is passed and documentation is in order, the SLF is issued. The building is officially certified as fit for use.
 
 

Before you commit to land — and before any permit process begins — zoning needs to be checked. Not all land in Bali can be built on, and not all land that can be built on can accommodate what you have in mind.
 
Key zoning considerations:
 
RDTR compliance — your proposed building use needs to align with the zone classification of the land. Residential, hospitality, commercial, and agricultural zones have different rules about what can be built and at what scale.

Koefisien Dasar Bangunan (KDB) — the land coverage ratio. This determines what percentage of your plot footprint can be covered by building. A 40% KDB on a 500 sqm plot means a maximum 200 sqm footprint.

Koefisien Lantai Bangunan (KLB) — the floor area ratio. Determines total built floor area across all levels.

Height limits — Bali has specific height restrictions tied to its cultural and religious landscape. The general limit of 15 metres (roughly 4 storeys) applies across most of the island, with stricter limits in certain areas.

Setbacks — minimum distances from plot boundaries, roads, rivers, and temples. These can significantly affect what's buildable on a given plot, particularly on narrow or irregular land.
 
Zoning is one of the main reasons to involve an architect before you buy or lease land. A plot that looks ideal visually may be significantly constrained once zoning rules are applied.
 
 

This is a question worth answering directly.
 
In practice, plenty of buildings in Bali have been constructed without full permit compliance — particularly older properties built before the current system was established. But the regulatory environment is tightening, and the risks of non-compliance are real:
 
Operational risk — for hospitality properties especially, operating without an SLF creates exposure. Licensing checks for villas, guesthouses, and hotels increasingly require it.

Resale and refinancing risk — a building without proper permits is harder to sell, harder to value, and in some cases impossible to use as security for financing.

Enforcement risk — local authorities do conduct compliance checks, and structures built in violation of zoning or without permits can be subject to enforcement action.

SLF retroactivity — obtaining an SLF for a building not constructed in accordance with an approved PBG is complicated. It's not always impossible, but it's significantly more difficult and costly than doing it properly from the start.
 
The permit process exists for reasons beyond bureaucracy. Zoning rules in Bali reflect genuine considerations — water table protection, cultural and religious landscape preservation, traffic and infrastructure capacity. Building within those rules isn't just legal compliance; it's part of building responsibly on the island.
 
 

Start the permit process early. PBG processing takes time, and construction cannot legally begin without it. Build permit timelines into your project schedule from the beginning, not as an afterthought.

Submit complete documentation. Incomplete submissions are the most common cause of delays. Your architect's job includes making sure the submission package is correct and complete the first time.

Don't deviate significantly from approved drawings during construction. If the design changes materially during construction, the implications for the SLF process need to be understood and managed.

Work with professionals who know the current system. Regulations have changed and continue to evolve. Anyone advising you on permits should be working with current knowledge, not pre-2021 experience.

Get proper legal advice on land and ownership structure. Permits and land rights are separate but related. Your notary and your architect need to be working with consistent information.


Where Samma Studio Fits In
 
As the architectural design studio on your project, we prepare and coordinate the technical documentation required for PBG submission. We work alongside your notary and any permit consultants involved, and we make sure the drawings submitted accurately reflect the design intent and comply with local regulations.
 
We don't manage the permit process as a standalone service — but for every project we design, proper permitting is part of how we work. It's not optional, and we treat it that way.
 
If you have questions about what a permit process might look like for a specific site or project type, that's a good conversation to have early.
 
Reach out at hello@sammastudio.com or WhatsApp +628977002111.