PBG in one paragraph
PBG stands for Persetujuan Bangunan Gedung — building approval. It was introduced by Government Regulation 16 of 2021, in force since 2 February 2021, and replaced the old IMB (Izin Mendirikan Bangunan). A PBG approves the technical design of the building — architecture, structure, mechanical, electrical and plumbing — against building standards and the zoning of the plot. It is issued by the regency or city government, through the SIMBG online system.
SLF in one paragraph
SLF stands for Sertifikat Laik Fungsi — certificate of fitness for use. It is issued after the building is completed and inspected, and confirms that what was built is safe and fit for its intended function. A building should not be occupied or used for business without it.
Why the difference matters
PBG is about what you are allowed to build. SLF is about what you actually built. The gap between the two is where most problems appear: changes made on site that were never approved, extra rooms, a pool moved into the setback, a roof higher than the drawings. Each of these can block the SLF at the end of the project.
The sequence for a villa
Under Government Regulation 28 of 2025 on risk-based licensing, a villa project normally follows this order:
- KKPR — spatial suitability. Confirms the activity fits the zoning. If this fails, nothing else matters. See land and zoning checks.
- Environmental approval. The level depends on the size and impact of the project.
- PBG. Drawings submitted through SIMBG and reviewed by the regency’s technical team.
- Construction according to the approved drawings.
- SLF after inspection of the completed building.
For a business — for example a rental villa — these basic approvals must be in place for the business registration (NIB) and licence to be effective.
What happens without them
The Building Law, as amended, provides for written warnings, stop-work orders, freezing or revoking the PBG or SLF, and demolition orders. In practice, local governments in Bali have sealed unlicensed buildings, and a villa without PBG and SLF cannot be licensed properly as a rental business.
There is also a commercial consequence: buyers, lessees and lenders increasingly ask for the permits. A villa without them is harder to sell or lease at full value.
“My villa has an IMB — is that enough?”
Buildings with an IMB issued before February 2021 generally keep it. What matters is whether the building still matches the IMB drawings. Extensions and changes after the IMB may need a new approval.
Common mistakes we see
- Leaving permits to the contractor without anyone checking who is responsible for what.
- Starting work “while the PBG is in process.”
- Design changes during construction that are never reflected in the approved drawings.
- Buying a finished villa without asking for PBG and SLF — then discovering it cannot be licensed as a rental.
- Forgetting SLF in the budget. It is often excluded from construction contracts and has to be planned separately.
A practical checklist
Before construction:
- Zoning and KKPR confirmed for your intended use.
- Drawings prepared for approval, not only for the owner.
- PBG issued before work starts.
During construction:
- Every change priced, approved and, where needed, reflected in the drawings before it is built.
Before handover:
- SLF inspection planned and budgeted.
- As-built drawings and documentation ready.
Where ICM fits
We plan the permit path with the architect and engineers, follow the submission, and control on site that what is built matches what was approved. See building permits PBG and SLF and construction project management.
General information as of the review date. Procedures and requirements vary by regency; confirm the current process for your project.