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JournalArticleConstruction3 min read

PBG and SLF: the two permits behind a legal building

Indonesia replaced the old IMB building permit in 2021. Here is what PBG and SLF mean for a new house in Bali, and why they matter long after the builders leave.

White two storey house in Bali with arched windows and a round timber door

Anyone who looked into building in Indonesia a few years ago will remember the IMB, the Izin Mendirikan Bangunan. In 2021, as part of the reforms that followed the Job Creation Law, the IMB was replaced by a new pair of documents: the PBG before construction and the SLF after it. The change was more than a new name, and it is worth understanding before you buy land or sign a design.

PBG: approval of the design

PBG stands for Persetujuan Bangunan Gedung, which translates as building approval. It confirms that the building you intend to construct meets the technical standards and the spatial plan for its location. In effect, the government is approving the design itself, not only the idea of building something on the plot.

To obtain it, the full set of technical drawings is submitted through the government's online system, SIMBG, and reviewed by the local authority. The zoning of the land has to allow the intended use, which is why a villa meant for rental may face different questions from a private home. A retribution fee is paid once the technical review is complete.

SLF: proof that it was built properly

SLF stands for Sertifikat Laik Fungsi, a certificate of function. It is issued after construction, once an inspection confirms the building matches the approved PBG and is safe to use. A building without an SLF is, strictly speaking, not ready to be occupied.

This second step is where many projects stumble. Changes made casually during construction, an extra room here or a larger opening there, can leave the finished building different from the approved design. Bringing the paperwork back into line afterwards is slow and sometimes expensive.

Permits are easier to think of as part of the property's value than as the builder's paperwork.

Why owners should care

It is tempting to leave permits to the contractor and think no more about them. Buyers and banks increasingly ask to see them, though, and a house with a clean PBG and SLF is simpler to sell and simpler to license for guests. A missing certificate rarely matters on the day you move in. It matters on the day you want to do something else with the house.

How we handle it

At BODE Construction the permit drawings and the construction drawings are the same set. Any change requested on site is checked against the approved PBG before it is built, and if it needs a revision we say so before the work goes ahead. The SLF inspection is written into the schedule from the beginning instead of being treated as an afterthought.

Requirements vary between regencies and continue to evolve, so we check the current process for each plot instead of relying on what applied to the last one. If you are weighing up a piece of land, this is one of the first conversations worth having, and the team at BODE Construction is the right place to begin it.

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