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What is Building Approval (PBG) in Indonesia? Obtain your PBG in 3 steps

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Obtaining a Building Permit in Indonesia is essential to a construction project. If you want to build a new structure or renovate an existing building in Indonesia, you must know what the Persetujuan Bangunan Gedung (PBG), or Building Approval, is and how to obtain the PBG license. This license was formerly the IMB Building Permit but was replaced by the Building Approval (PBG) in November 2021.

What is a Building Approval (PBG) in Indonesia?

You might have searched for what IMB in Indonesia is before. The results would lead you to information about Persetujuan Bangunan Gedung (PBG), as the Indonesian government replaced the previously used permit, named Izin Mendirikan Bangunan (IMB), with the PBG Building Approval in November 2021 by introducing Regulation 16/2021. This update to the permitting process serves as an essential note for local builders and property owners. 

The Building Approval PBG provides for technical requirements at its issuance, which remains valid until the permit expires. The applicant must meet the standards for planning, designing, constructing, supervising, utilizing, and demolishing the building to obtain PBG in Indonesia.

Difference between PBG (Building Approval) and IMB (Building Permit)

IMB was a building registration document that explained the purpose of a building. The Building Permit IMB focuses on the privilege to construct a building arising from the permission granted by the government.

PBG emphasizes that the construction was permitted because the building plans met technical and safety standards. It is important to remember that IMB no longer exists, and property owners do not have to obtain one. Instead, they must get a new PBG permit with more complicated technical requirements.

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What does the Building Approval (PBG) in Indonesia cost?

The cost of obtaining a Building Approval (PBG) in Indonesia can vary based on the type and size of the building. The minimum price to get PBG for a small house or apartment is around IDR 50,000 ($3.15). For an office, the minimum cost for PBG is around IDR 200,000 ($12.60).

It’s important to note that these are only minimum costs and can increase as the size of the building or the area it is located in increases. 

The importance of PBG Indonesia

The PBG legitimizes building construction by confirming that it meets government standards and is safe for use. It is crucial as it ensures that the building plans are within safety standards and meet the comfort of its residents.

How to get a Building Approval (PBG) in 3 steps

Obtaining Building Approval (PBG) in Indonesia is essential in constructing any building. PBG proves the building complies with government regulations and standards and is safe for occupancy. 

Step 1: Submission of the technical plan

The technical plan usually consists of the blueprint of the intended construction made by an architect. This blueprint must include the materials, location, project timeline, types of equipment, and other features required by authorities. 

Step 2: Submission of documents as SBKBG, SFL, and HGB

Once the technical plan is approved, the applicant must submit additional requirements. These are the owner’s personal information, building data, Surat Bukti Kepemilikan Bangunan Gedung (SBKBG or Proof of Building Ownership), and Sertifikat Laik Fungsi (SLF or Certificate of Permitted Use). Are you building a property on leased land? You might need to apply for the Hak Guna Bangunan (HGB) title if you own the building with a PT PMA

Step 3: Planning consultation

When all documents are approved, the planning consultation begins. This stage is usually the most daunting as it consists of extensive inspection by the government. But before the review begins, the applicant must register in the Building Management Information System (SIMBG). Afterward, an assessment begins to ensure compliance with safety standards. A PBG & Compliance Statement with Technical Standards is issued if the plan is accepted. 

building approval pbg in Indonesia
Building Approval (PBG) is needed to start construction in Indonesia

What is Sertifikat Laik Fungsi (SLF)?

Sertifikat Laik Fungsi (SLF), or Certificate of Permitted Use, specifies the intended function of a building, whether it is for commercial or residential use. It is valid for five years for commercial purposes and twenty years for residential use, subject to periodic inspections and renewals.

When and why do I need an SLF?

Indonesia’s Sertifikat Laik Fungsi is not a construction license. It is a crucial document before a building can be occupied and used. Even if construction is completed, the building is only usable if the owner has an SLF. The SLF proves that the building has been approved for its intended use and complies with all relevant regulations and standards.

Persetujuan Bangunan Gedung (PBG) vs Hak Guna Bangunan (HGB)

Persetujuan Bangunan Gedung (PBG) and Hak Guna Bangunan (HGB) are two entirely different legal documents in Indonesia that relate to the ownership and usage of buildings. 

Persetujuan Bangunan Gedung (PBG) is a document that approves building construction. It proves that the building has met government regulations and technical safety standards. On the other hand, Hak Guna Bangunan (HGB) is a title that gives a legal entity, such as a PT PMA, the right to own a construction on the land of a third party. The HGB title doesn’t mandate technical requirements but is evidence of ownership.

Obtain PBG in Indonesia with Own Property Abroad

Are you considering building a property in Indonesia? And do you need to obtain a Building Approval (PBG) in Indonesia? Own Property Abroad can assist you. Thanks to our extensive knowledge and local experience in the Indonesian market, we can help with legal requirements, finding suitable properties, negotiating the best deals, and conducting due diligence.

With our expert team, you won’t have to navigate the complexities of applying for PBG alone. For further information on how we can assist you, kindly drop your details below or email us at [email protected]. Let’s start working on your property success story today!

Get help with obtaining PBG in Indonesia

Leave your name and email below – We will reach out to answer all your questions and assist you with PBG for your property in Indonesia.


Obtaining a Building Approval (PBG) in Indonesia, which replaced the IMB permit, is crucial in ensuring compliance with construction project safety, design, and zoning regulations. Property owners and builders in Bali must familiarize themselves with the transition and understand the new regulatory framework. By adhering to the PBG process and requirements, including the necessary documents and technical standards, individuals can ensure compliance, safety, and a smooth construction experience in Indonesia.

Frequently Asked Questions (FAQs)

Do I need a Building Approval (PBG) in Bali?

Yes, obtaining a Building Approval (PBG) in Bali is necessary for construction projects. The PBG, which replaced the previous IMB permit, ensures compliance with safety, design, and zoning regulations. Obtaining PBG before commencing any building construction or renovation activities in Bali is a legal requirement.

What is PBG in Indonesia?

PBG stands for Persetujuan Bangunan Gedung, translating to Building Approval in Indonesia. It is the new regulatory framework for approving building construction projects. PBG ensures that safety standards and design specifications construct buildings and comply with the designated land allocations. It is a mandatory permit required for construction activities in Indonesia.

What documents are required for a Building Approval (PBG)?

The documents required for obtaining a Building Approval (PBG) may vary depending on the nature and scale of the construction project. Common documents typically include architectural drawings, structural designs, land ownership documents, land certificates, land use permits, environmental impact assessments (if applicable), and any other relevant permits or licenses required by local authorities.

Your guide to buying property in Indonesia

Written by Monisa Ruth Simon

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