Mastering Building Approval (PBG) in Indonesia

by BVR Property Team
17 January 2024

The construction of a building holds significant importance in property investment. Therefore, investors won’t miss the building construction process. However, those intending to construct a building in Indonesia must obtain building approval (PBG), formerly known as IMB. In addition to PBG, they’re also required to possess Sertifikat Laik Fungsi (SLF).


This article provides a comprehensive explanation for you to master PBG in Indonesia – the definition of building approval, the difference between PBG and IMB, the SLF, the required documents, and the steps for obtaining PBG.


What is Building Approval (PBG)?

Building approval, known Persetujuan Bangunan Gedung (PBG), is a permit issued by the Indonesian government – granting permission to the building owner to start building construction.


The granting of building approval involves the inclusion of technical requirements. These technical requirements remain effective until the permit expires. Additionally, PBG approves building construction meets safety and government standards for use.


This permit is formerly known as Building Permit or Izin Mendirikan Bangunan (IMB). However, in February 2021, the Indonesian government replaced IMB with PBG through Peraturan Pemerintah No. 16 Tahun 2021 (PP No. 16 Tahun 2021).


This update is vital for those who want to construct a building in Indonesia – whether for commercial or residential purposes. Therefore, those who want to obtain this permit must adhere to the all criteria of constructing the building process – from planning to utilizing the building.


According to PP No. 16 Tahun 2021 Pasal 5, we can summarize the functions of building approval, including:

- Residential functions – as a living place.

- Religious functions – for religious activities (such as mosque, church, temple, and others).

- Business functions – for business operations.

- Social and cultural functions.

- Special functions – has special functions determined by the Minister.


PBG vs IMB – What are the Differences?

As mentioned previously, the Indonesian government instituted PBG as a substitute for IMB in 2021. There are differences between PBG and IMB that we can find.


The distinction between IMB and PBG lies in their application formats and the process of seeking permission before constructing a building.


IMB is a permit that you must obtain before or when constructing a building. As a building owner, you must attach the building technical when applying a permission for IMB.


Meanwhile, building approval or PBG regulates how buildings are built. You aren’t required to obtain this permit before constructing a building.


The differences between PBG and IMB also lie in what must be reported, the prerequisites, and sanctions.


IMB requires the building owners to report the function of the buildings, whereas PBG reporting both the function and aligning the construction with the existing spatial layout.


IMB requires you to prepare prerequisites – land rights status, utilization permits, and building ownership status. On the other hand, building approval only mandates compliance with building planning and designing based on the building layout, reliability, and prototype design.


Regarding sanctions, there are no sanctions in IMB if the building owners don’t report changes to the function of the building. In contrast, PBG applies sanctions.


What is Sertifikat Laik Fungsi (SLF)?

As we mentioned earlier, there’s a certificate that is needed to apply for building approval – it’s Sertifikat Laik Fungsi (SLF).


According to Peraturan Pemerintah No. 16 Tahun 2021, Sertifikat Laik Fungsi is a document verifying the designated and reliability function of a building, whether for residential or commercial use. This permit is called a Certificate of Permitted Use in English.


The SLF is released by the Regional Government and remains effective for 20 years for residential purposes and 5 years for commercial purposes. In pasal 274 of this PP, the building owners must have SLF before they utilize their buildings.


The SLF isn’t only significant for building owners, this certificate is also important for property developers for releasing Akta Jual Beli (AJB) and selling and constructing a building as a commercial property.


Building Approval Required Documents

The documents you need to prepare for applying for building approval may vary depending on the construction project. However, there are several common documents, such as:


- Structural design.

- Land ownership documents.

- Land certificates.

- Architectural drawings of the building.

- Land use permits.

- Any other documents that are requested by local authorities.


How to Obtain Building Approval (PBG)?

If you're the property owner, you can register for PBG easily online. According to Sistem Informasi Manajemen Bangunan Gedung (SIMBG), you need to make an account before registering for building approval. Here are the steps:


1. Click “Daftar” on the SIMBG page or the top menu of the page.

2. Select “Daftar Sebagai Pemohon”, and register the email address, password, and security code on the registration form. Then, click “Kirim”.

3. You’ll receive successful registration information.

4. Open your email for the verification process. Then, click “Verifikasi” in the body of the email.

5. You’ll be redirected to the SIMBG page to complete the applicant’s data.

6. After completing your data, click “Simpan” and your applicant registration process successful.


Now, you already have an account on SIMBG. The following are the steps to register for PBG on the SIMBG website. The steps are quite long and technical. You can read the steps completely by visiting the SIMBG website on “Panduan Permohonan”. On that official guideline, you'll be directed with pictures.

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