Are PBG and SLF Permits Required for Villas and Boarding Houses in Bali?
Opening a villa or boarding house in Bali comes with exciting opportunities—both personal and financial. However, to ensure your investment is secure and fully compliant with local regulations, it is critical to understand the legal requirements tied to property use, particularly the PBG (Persetujuan Bangunan Gedung) and SLF (Sertifikat Laik Fungsi) permits.
At The Bali Lawyer, we help property owners, investors, and foreign nationals navigate Indonesia’s evolving building regulations with clarity and efficiency. This guide explains everything you need to know about the necessity of PBG and SLF permits for villas and boarding houses in Bali, how the application process works, and what legal implications you should be aware of.
What Is a PBG (Building Approval Permit)?
The PBG, or Persetujuan Bangunan Gedung, is the legal successor of the previously known IMB (Izin Mendirikan Bangunan or Building Permit). In 2021, the Indonesian government transitioned to a more integrated and standardized framework, replacing the IMB with the PBG. This change aims to provide greater clarity and compliance with modern construction standards, building functions, and spatial planning regulations.
A PBG is mandatory for any building in Indonesia, including villas and boarding houses, to:
Ensure the building design meets technical and spatial planning criteria.
Verify land-use suitability.
Prevent legal disputes related to property development.
What Is an SLF (Certificate of Feasibility)?
The SLF, or Sertifikat Laik Fungsi, is a certificate that declares a completed building is safe and fit for use. This document is issued only after a building has passed a post-construction inspection, ensuring that the physical structure and its utilities—electrical systems, plumbing, accessibility features, and fire safety—meet the required national standards.
Without an SLF, the building is technically not allowed to be occupied or used commercially, even if the PBG was previously approved. For villas or boarding houses that aim to operate as hospitality properties, this document is crucial.
Are PBG and SLF Permits Mandatory for Villas in Bali?
Yes. Any villa, regardless of whether it is used privately or commercially (e.g., short-term rentals, Airbnb listings, or boutique accommodations), must have a valid PBG. If the villa is being offered for rent or used for income-generating purposes, an SLF is also required to certify that the building is safe for public use.
Many villa owners, especially foreigners, assume that registering a business or leasing land under a nominee structure is sufficient. However, operating without a PBG and SLF puts your investment at risk of:
Government fines and penalties
Forced closure or sealing of the property
Legal disputes during ownership transfers or lease renewals
Problems during business license applications or visa extensions
Are Boarding Houses (Rumah Kos) Required to Have PBG and SLF?
Absolutely. Rumah kos (boarding houses) are classified as commercial residential properties and are required to have both PBG and SLF permits.
In fact, boarding houses fall under stricter scrutiny because they cater to long-term residents and often involve shared facilities. Failure to obtain the appropriate permits may result in legal sanctions or closure notices from local authorities.
To meet compliance, owners must ensure:
Land zoning allows for residential-commercial use
Proper structural design and sanitation are approved
Fire safety and environmental management plans are implemented
What Happens If You Operate Without PBG and SLF?
Many foreign and local investors unknowingly operate properties without the proper permits. While this may go unnoticed for a time, it carries significant risks:
Inspections and Penalties: Local building authorities in Bali conduct periodic site inspections. Non-compliant buildings may receive a stop-use order or be sealed.
Business License Denial: Without a valid SLF, applying for a hospitality business license, such as TDUP or NIB, will be rejected.
Insurance Invalidation: Insurance claims may be denied if a building lacks certified usability (SLF).
Property Devaluation: Properties without complete permits are harder to sell or lease and may face price reductions.
Avoiding these risks is possible with the right legal strategy and due diligence.
Legal Requirements to Obtain a PBG for Villas and Boarding Houses
To apply for a PBG in Bali, property owners must prepare the following:
Proof of land ownership or leasehold
Spatial planning approval (RTRW/Zoning)
Building design and architectural drawings (must be submitted by a licensed architect)
Environmental impact analysis (AMDAL or UKL-UPL, depending on size)
Structural and technical reports
NIB (Business Identification Number), if commercial
The documents are submitted through the SIMBG portal—Indonesia’s official online building permit system.
SLF Application Process and Timeline
After construction is completed, a building must undergo inspections to obtain the SLF. Here’s a simplified overview of the process:
Post-Construction Review: Local officials verify the building’s compliance with the approved design.
Technical Assessments: Utilities, structural integrity, ventilation, sanitation, and accessibility are assessed.
Final Report Submission: A full compliance dossier is submitted to the regional Public Works Department (Dinas PUPR).
SLF Issuance: If all requirements are met, the SLF is issued within 15–30 working days.
For villas and kos-kosan (boarding houses), engaging a professional legal service to prepare documentation and schedule inspections ensures smoother approval.
Foreigners and Legal Building Ownership: What to Know
Foreign nationals cannot directly own freehold land in Indonesia, including in Bali. However, legal alternatives exist to acquire usage rights and build or lease properties. These include:
Hak Pakai (Right to Use): A common legal vehicle for foreigners, valid for up to 80 years.
Hak Guna Bangunan (Right to Build): Applicable to PT PMA companies, ideal for large commercial projects.
Nominee Agreements (not recommended): Risky and often unenforceable in court.
All of these require PBG and SLF compliance for lawful construction and use.
Common Mistakes Foreigners Make in Bali Property Ownership
Skipping Legal Consultation: Assuming what works in another country applies in Bali can result in costly oversights.
Improper Land Zoning: Building a villa in a green zone or residential-only area will result in automatic permit denial.
Relying on Verbal Agreements: Always ensure all documentation, including land rights and building approvals, are legally verifiable and registered.
Operating Commercial Properties Under Personal Names: This violates business and tax laws.
These mistakes are easily avoided with early legal advice and due diligence—services we provide at The Bali Lawyer.
How The Bali Lawyer Can Help
We offer end-to-end assistance for both PBG and SLF applications in Bali and throughout Indonesia. Our team of licensed legal consultants, architects, and compliance officers can help you with:
Zoning analysis and land-use verification
Preparing and submitting all required documentation
Liaising with local government departments
Monitoring your application process through the SIMBG portal
Advising on the safest and most compliant ownership structures for foreigners
Whether you’re building a luxury villa in Uluwatu or managing a kos-kosan in Denpasar, our team ensures you operate safely and legally.
Bali remains one of the most desirable destinations for property investment and lifestyle ventures. But with growing scrutiny on compliance and legality, it’s no longer optional to “wait and see” when it comes to permits. PBG and SLF are non-negotiable requirements—not just to meet local law, but to protect your investment and peace of mind.
If you are planning to build, buy, rent, or convert a villa or boarding house in Bali, reach out to a trusted legal partner early. Let The Bali Lawyer handle the complexity while you focus on your vision.