How to Obtain a Construction Permit for Commercial Buildings in Indonesia – 2025 Legal Guide by The Bali Lawyer
Securing a legal construction permit is a fundamental step for any commercial building development in Indonesia. Whether you are planning to construct an office tower, hotel, retail center, restaurant, or factory, full compliance with Indonesian regulations is essential to avoid costly penalties, construction halts, or future legal complications.
At The Bali Lawyer, we specialize in helping businesses and developers obtain the necessary permits and approvals for their commercial projects. This guide outlines the updated 2025 process, requirements, and legal framework for obtaining construction permits for commercial buildings across Indonesia.
Why Construction Permits Are Critical in Indonesia
Construction permits are not optional—they are legally required for all new building developments, renovations, or major structural changes. Without a valid permit, your construction can be deemed illegal, leading to sanctions, forced demolition, and permanent complications with government authorities.
For commercial buildings, the legal requirements are even more stringent due to public safety, zoning, environmental, and operational considerations. A construction permit is a legal assurance that the building complies with structural, environmental, and spatial regulations.
Types of Construction Permits in Indonesia
In 2021, the Indonesian government replaced the former IMB (Izin Mendirikan Bangunan) system with the PBG (Persetujuan Bangunan Gedung). As of 2025, all commercial buildings must obtain a PBG before construction.
Additional permits may also include:
SLF (Sertifikat Laik Fungsi) – Function Worthiness Certificate
KKPR (Kesesuaian Kegiatan Pemanfaatan Ruang) – Spatial Use Approval
AMDAL/UKL-UPL – Environmental Impact Assessment or Environmental Management Plan
The exact permits required depend on the building size, location, usage, and ownership status.
What Is PBG and Why Is It Important?
The PBG (Building Approval) is a legal document that authorizes construction activities and ensures that the design and structure meet technical and legal standards.
The PBG covers:
Architectural plans
Structural safety
Building functions
Sanitation and fire safety
Environmental impact
Accessibility and public facilities
Without a PBG, construction is not legally permitted. Additionally, you cannot apply for an SLF or begin operations in the completed building without it.
Steps to Get a Construction Permit for Commercial Buildings in Indonesia
1. Verify Land Ownership and Legal Status
Before applying for any construction permits, you must confirm that the land:
Is legally owned or leased under a valid agreement
Has clear title (SHM, SHGB, SHP, etc.)
Is not involved in a dispute or mortgage
Is suitable for commercial development
The Bali Lawyer conducts thorough due diligence on land certificates and legal records before proceeding.
2. Obtain KKPR (Spatial Planning Approval)
The KKPR confirms that the land use aligns with regional spatial planning (RTRW) and is suitable for commercial building construction.
To obtain a KKPR:
Submit a location map and land certificate
Confirm zoning compatibility (commercial, tourism, industrial, etc.)
Apply through the OSS (Online Single Submission) system
Without a valid KKPR, you cannot legally apply for a PBG.
3. Prepare Architectural and Structural Designs
Commercial buildings require detailed technical documentation, including:
Architectural blueprints and floor plans
Structural calculations and safety analysis
Fire safety systems
Electrical, plumbing, and HVAC schematics
Green building and accessibility features
These must be prepared by licensed consultants and meet the standards of the Ministry of Public Works.
4. Submit PBG Application via OSS RBA
Once your designs are ready, you must submit your application for a PBG through the OSS RBA (Risk-Based Approach) system. Required documents include:
KKPR approval
Land ownership proof
Design plans and technical documents
Identity and legal status of applicant (individual, PT, or PT PMA)
Environmental clearance (if required)
The application is then reviewed by the local public works department.
5. Undergo Technical Verification
Authorities will evaluate:
Structural integrity
Building function
Compliance with spatial planning
Environmental and social impact
Alignment with building codes and safety standards
Corrections or resubmissions may be requested during this phase.
6. Receive PBG (Building Approval)
Once approved, the PBG is issued electronically and legally authorizes construction to begin. This document must be available on-site and presented if requested by inspection authorities.
7. Begin Construction and Comply with Supervision Requirements
You must ensure that construction follows the approved plans exactly. Any deviation could invalidate the PBG or delay SLF certification. Ongoing supervision by licensed project managers and engineers is mandatory.
8. Apply for SLF (Function Worthiness Certificate)
After construction is complete, the SLF certifies that the building is safe and fit for use. This is essential before opening the building to the public or operating a business inside.
SLF approval includes:
Site inspections
Final as-built drawings
Safety system checks (fire, electrical, structural)
Final environmental compliance review
Special Cases and Compliance for Foreign Investors
If the commercial building is being developed by a foreign entity, you must establish a PT PMA (Foreign-Owned Company). The PT PMA is legally allowed to hold Hak Guna Bangunan (HGB) and apply for construction permits.
We assist foreign clients with:
Setting up PT PMA companies
Obtaining business licenses (NIB)
Handling legal compliance with BKPM and local authorities
Navigating land ownership and construction permit processes
Environmental Permits for Commercial Construction
Larger commercial buildings, such as hotels, resorts, malls, and factories, may require additional environmental clearances:
AMDAL – For high-impact projects (required for buildings over 10,000 sqm)
UKL-UPL – For medium-impact developments
SPPL – For small-scale low-risk projects
We help prepare all necessary documents and coordinate with the Environmental Agency for timely approvals.
Common Challenges in Getting Construction Permits
Zoning mismatches with planned use
Incomplete land ownership or lease documents
Errors in technical drawings or failure to meet building codes
Delays in approval due to incorrect submissions
Misunderstanding regional regulations
The Bali Lawyer ensures you avoid these delays through expert handling and complete legal oversight.
Timeline and Validity
The average timeline to obtain a PBG for a commercial building is 30–90 days, depending on complexity and location.
PBG is valid for the construction period until completion
SLF must be renewed every 5–10 years depending on the building type
We manage your project timeline to ensure compliance and avoid regulatory interruptions.
Our Coverage Areas
We provide legal support for construction permits in all major cities and provinces across Indonesia, including:
Bali
Jakarta
Surabaya
Bandung
Lombok
Yogyakarta
Batam
Kalimantan
Sumatra
Papua
Whether you’re building a hotel in Bali, a factory in Java, or an office in Jakarta, we offer nationwide services tailored to your commercial goals.
Why Choose The Bali Lawyer?
As a trusted law service based in Bali, we are experienced in managing commercial real estate compliance, permits, and construction legalities across Indonesia. Our team includes legal consultants, architects, engineers, and environmental experts working together to deliver complete solutions.
We provide:
End-to-end permit acquisition services
Legal due diligence on land and title
Preparation and submission of PBG and SLF
Support for PT PMA and foreign ownership structures
Zoning and spatial planning assistance
Timely, responsive communication with clients and authorities
A construction permit is not just a legal requirement—it’s the foundation of a secure and successful commercial development. With increasing government oversight and digitized systems like OSS RBA, businesses must now be more precise and compliant than ever before.
The Bali Lawyer is here to help you navigate this process with confidence. From land purchase to final SLF certification, we handle every step to ensure your commercial project is legally protected and fully approved.