PBG and SLF in Bali: the building approval and the certificate of occupancy

PBG, or Persetujuan Bangunan Gedung, is the approval of a building's design against local building standards. The regency issues it before construction starts, through SIMBG, the government's online building system. PP 16/2021, which implements the Buildings Law 28/2002, brought it in to replace the old IMB.

A PBG proves the authorities approved the project. It doesn't prove the building on site matches the drawings or passed an inspection. That's a different document.

Before a PBG can move, the plot needs KKPR, confirmation that the zone allows the use. Our zoning guide covers that step.

Source: PP 16/2021 implementing Law 28/2002 on buildings; Tarubali, Bali provincial portal

SLF, or Sertifikat Laik Fungsi, comes after construction. It confirms that inspectors checked the building for structure, fire safety and building services, and that it's fit for its approved use.

Without an SLF, the building hasn't formally entered service, even if someone lives in it. That matters most for rentals. A tourism business license rests on basic requirements that include the building's approvals, so a villa without an SLF can't be licensed for nightly guests on a clean file.

An SLF isn't permanent. Under PP 16/2021, it runs 20 years for a single house or a row house. Every other building gets five years, and then the owner renews it after a fresh inspection.

Which clock applies depends on the building's approved function. A villa approved as a family home sits in the first group. One approved for tourist accommodation is a business building and falls in the second. Read the function on the PBG and the expiry date on the SLF itself, rather than taking either from a brochure.

Source: PP 16/2021, Article 297, as summarized by SmartLegal.id and Taalenta, 2026; Tarubali

IMB, or Izin Mendirikan Bangunan, was the building permit before the 2021 reform. PBG is its replacement. They play the same role in the chain: approval to build.

Authorities generally recognize an IMB issued before the reform, so a villa built in 2018 doesn't need a new PBG just because the name changed. What it does need is a building that still matches the IMB drawings. Extensions, an added floor or a converted garage break that match, and they're what usually stalls the SLF later. Ask a notary or licensing consultant to confirm the status of an older permit for your property.

Source: PP 16/2021 transitional provisions; Rise Real Bali deal practice, 2023–2026

We see it regularly. Someone built the villa years ago under an IMB or PBG, and the SLF inspection never happened. Sometimes nobody applied. Sometimes someone booked the inspection and then postponed it. Sometimes the building grew past its drawings, and the owner stopped there.

None of that makes the property a bad buy. It changes what you're buying. The missing certificate becomes a task with a timeline and a cost. If the villa rents without a license, the risk sits with whoever owns it at the time of an inspection, not with the person who sold it.

Ask for both documents by name, as separate files. A seller who sends one and calls it "the permits" has usually sent the PBG.

• PBG, with the approved drawings
• SLF, showing the date it was issued, the expiry date and the approved function of the building
• A walk-through that compares the layout on site with the PBG drawings
• Missing SLF: the reason and who pays
• For off-plan, a written deadline for the SLF after handover

A missing or expired SLF isn't automatically a reason to walk away, especially if the villa is for your own use. If the plan is rental income, it means licensed short-term letting isn't available yet. Put the time and cost of getting the certificate into your numbers before you agree a price.

Find out why it's missing. A file that was never submitted is paperwork. A building that differs from its drawings can mean revised drawings, a new approval and sometimes physical changes before an inspector will sign.

When you buy before completion, the PBG should already exist. The PPJB rules in PP 12/2021 require it before a presale agreement. The SLF can't exist yet, so the contract has to carry it.

Ask for a clause that names the SLF as a handover deliverable or sets a firm date after handover, with a retention or a refund if it slips. A final installment tied to the SLF gives the clause teeth. How to check a Bali developer covers the rest of the paperwork on an off-plan deal.

Source: PP 12/2021 on housing, via Industri Properti; Rise Real Bali contract practice

The regency government issues both, through SIMBG. Each regency sets its own PBG levy by local regulation, so there's no single national rate. Budget from the regency where the plot sits, not from a figure in someone's presentation.

Most owners hire a consultant for the drawings and inspection. Their fees are private and negotiable, and we haven't found a published schedule we'd quote. Get a written quote that separates the government levy from the consultant's fee.

Source: PP 16/2021; regency levy regulations; Tarubali

With PBG and SLF in place, the villa can move on to the license that lets it take nightly guests. Bali villa rental license explains the NIB, the activity codes and what changed on booking platforms in 2026. The due diligence checklist covers land and title.

Pick a property from our catalog and we'll confirm its PBG and SLF status before you pay anything. You'll find completed villas that are ready to rent across the areas we cover.

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