The two permits in plain terms
- PBG (Persetujuan Bangunan Gedung) — approval to build according to technical drawings that meet building standards. It replaced the IMB under Government Regulation 16 of 2021.
- SLF (Sertifikat Laik Fungsi) — certificate that the completed building is fit for its intended use. Required before a building is occupied or used for business.
The sequence for a villa
Under Government Regulation 28 of 2025 on risk-based licensing, the basic approvals come in this order:
- KKPR — spatial suitability: the activity fits the zoning of the plot. See land and zoning checks.
- Environmental approval — level depends on the size and impact of the project.
- PBG — submitted through SIMBG with architectural, structural and MEP drawings, reviewed by the regency’s technical team.
- Construction — built according to the approved drawings, with inspections.
- SLF — issued after inspection of the completed building.
For a business, these approvals must be in place for the business registration (NIB) and licence to become effective.
What goes wrong
- Drawings that do not match the zone — coverage ratio, height or setbacks exceeded.
- Building changes during construction that are not reflected in the approved PBG, which later block the SLF.
- Permits left to the contractor without anyone checking scope and responsibility.
- Buying a finished villa without SLF, then discovering it cannot be licensed as a rental.
Sanctions under the Building Law include written warnings, stop-work orders, freezing or revoking the PBG or SLF, and demolition orders. Local governments in Bali have sealed unlicensed buildings.
How ICM manages permits
- Check zoning and KKPR feasibility before design is finalised.
- Brief the architect and engineers so drawings are prepared for approval, not only for the client.
- Coordinate submission in SIMBG and follow up with the regency.
- During construction, control that changes are approved before they are built.
- Organise the inspections and documentation for SLF at completion.
Permits are part of our construction project management and development management scope, and can also be engaged on their own.