Understanding Legal Framework of Building Permits in Indonesia 

From the hectic offices to residential neighborhoods, securing building permits is a mandatory step in ensuring legality of a construction project. In this article, we will explain the significance of building permits in Indonesia in simple terms. Understanding the dynamics will certainly make your business run smoothly. 

3 Types of Building Permits in Indonesia 

Like many other countries, Indonesia experiences many changes in regulations over time, including those that are related to building and construction permits. One significant conversion is the shift from IMB (Izin Mendirikan Bangunan or Building Construction Permits) to Perizinan Bangunan Gedung (PBG or Building Approval). Here are 3 types of building permits and the brief descriptions: 

  1. PBG (Perijinan Bangunan Gedung)

First governed by Undang-Undang No. 28/2002 and refined by Omnibus Law No. 2/2022, the regulations now allow both aboveground and underground structures for various purposes, both personal or commercial. Unlike its predecessor IMB which only permitted single-function buildings. PBG is needed for construction of new buildings, renovations, expansions or reductions of sizes, and maintenance of buildings. This document is to make sure the construction follow the building codes, environmental regulations, and safety measures. 

  1. SLF (Sertifikat Laik fungsi) 

In addition to PBG, there’s also SLF or Sertifikat Laik Fungsi. In English, it’s like a certificate of conformity for function. The certificate indicates that a building or construction project has been checked, tested, and reviewed to make sure it’s safe and the structure complies with the designated functions and land use regulations, ensuring it is suitable for its intended purpose. Obtaining an SLF (building permit) requires contractors to first submit a report analyzing and calculating the building’s structural strength, fire safety measures, electrical systems, and plumbing. This report will then be reviewed by authorized officials. 

  1. SBKBG (Surat Bukti Kepemilikan Bangunan Gedung)  

The last type of building permit that is also important is SBKBG that stands for Surat Bukti Kepemilikan Bangunan Gedung or The Proof of Building Ownership. The purpose is to safeguard building records that involve up-to-date information about buildings, including ownership, permits, and inspection reports. 

How to Apply for Building Permits in Indonesia? 

To get PBG, SLF and SBKGB in Indonesia, you need to register through SIMBG as in Sistem Informasi Manajemen Bangunan Gedung or Building Management Information System. It’s an online system set up by the Ministry of Public Works and Public Housing. Depending on where your project is located, you must submit your application to both the central government and the local government in charge.   

And depending on the type of building or construction projects, each permit might have different requirements. Roughly, the documents that need to be prepared before applying for building permits include: 

1. Applicant’s or Owner’s Information

2. Building Information

3. Technical Plan Documents that consists of architectural plan, utility plan, structural plan and building technical specifications   

The Importance of Obtaining Building Permits in Indonesia 

Whether it is for residential or a business purposes, obtaining PBG/SLF and SBKBG in Indonesia is compulsory to ensure compliance with regulatory frameworks as well as for safety and technical standards. Not getting the needed permits can lead to legal problems like fines, stop-work orders, or even administrative sanctions. Not to mention long-term implications for the project, such as difficulties in selling or leasing the property, lowered property value, or other lasting effects. 

Applicants might deal with few challenges during applying the building permits. For example, bureaucratic procedures that lead to a complicated and prolonged process. Technical documents might need to consult certified experts like architects. It is highly recommended too, to keep updated with local authorities and communities, seek legal counsel, and stay informed about the specific requirements and challenges in the region wherever the construction projects are.  

You can contact Seven Stones Indonesia today for further details about building permits in Indonesia. As an experienced team in property and real estate, we have assisted many satisfied clients in obtaining various licenses and building permits for their businesses. Submit your inquiry on our contact form and let’s find out tailored solutions that might meet your needs. 

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