Last reviewed: August 2026 | Covers the retribution formula, verified Denpasar index figures, and what is government fee versus consultant fee.
How Much Does a PBG Cost in Bali?
There is no price list. The PBG retribution is calculated from a formula set by national regulation, using index values that each regency sets for itself. Anyone quoting you a flat figure for "a PBG" is quoting their own service fee, not the government charge.
Three things are free that people routinely get charged for, so start with those.
Free by regulation: the planning consultation stage (Article 253(8) of PP 16/2021), and the issue of the SLF and the SBKBG, including renewals (Article 276(3) and Article 302(3)). The only mandatory government charge in the whole PBG and SLF chain is the PBG retribution itself.
The formula
From Annex VIII B of PP 16/2021:
| For | Formula |
|---|---|
| Buildings | Nr = LLt × (Ilo × SHST) × It × Ibg |
| Building prasarana (walls, pools, roads) | Nr = V × I × Ibg × HSpbg |
| Term | What it is |
|---|---|
| Nr | The retribution you pay |
| LLt | Total floor area, all floors plus basements |
| SHST | Highest unit price for a simple state building, set each year by the mayor or regent |
| Ilo | Locality index, a percentage capped at 0.5% |
| It | Integrated index, built from function, complexity, permanence and height |
| Ibg | Built-building index: new, renovation or restoration |
Why the numbers do not explode
The Ilo term is doing the heavy lifting, and it is worth understanding why it exists.
The Ministry's own worked example: a 100 m² single-storey house, integrated index 0.1, SHST of Rp 2,000,000, gives Rp 20,000,000 before Ilo is applied. Apply Ilo at 0.5% and it lands at Rp 100,000.
That was deliberate. Regions were told to set Ilo so the new PBG retribution came out close to the old IMB retribution rather than multiplying it two hundredfold. When you see the formula and panic, this is the term you have missed.
Denpasar: the actual index values
These are from Annex III of Perda Kota Denpasar No. 5 of 2023, which is the operative regulation.
Function index (If)
| Building function | If |
|---|---|
| Residential, under 100 m² and under 2 floors | 0.15 |
| Residential, over 100 m² and over 2 floors | 0.17 |
| Business (usaha) | 0.7 |
| Business, micro enterprise or prototype design | 0.5 |
| Mixed use, under 500 m² and under 2 floors | 0.6 |
| Mixed use, over 500 m² and over 2 floors | 0.8 |
| Social and cultural | 0.3 |
| Religious | 0 |
| Special function | 1 |
Look at the jump from 0.15 for a house to 0.7 for a business building. That is roughly a fourfold multiplier on the whole calculation, and it is the single most expensive decision in your application. If your villa is going to be let out, it is a business building. See the section on villas below.
Locality index (Ilo), Denpasar
| Function | National / provincial / kabupaten road | Local road |
|---|---|---|
| Residential (simple and non-simple) | 0.5 | 0.4 |
| Business, micro | 0.4 | 0.5 |
| Business, non-micro | 0.5 | 0.5 |
| Social and cultural, PAUD to SLTA | 0.1 | 0.1 |
| Social and cultural, higher education | 0.2 | 0.2 |
| Special function | 0.5 | 0.5 |
Parameter weights and ownership
- Complexity weight 0.3. Simple = 1, not simple = 2.
- Permanence weight 0.2. Non-permanent = 1, permanent = 2.
- Height weight 0.5, using the floor coefficient table.
- Ownership factor: state = 0, private individual or company = 1. State buildings pay nothing, because the whole integrated index collapses to zero.
Floor coefficients, Denpasar
1 floor = 1.000 · 2 = 1.090 · 3 = 1.120 · 4 = 1.135 · 5 = 1.162 · 6 = 1.197 · 7 = 1.236 · 8 = 1.265 · 9 = 1.299 · 10 = 1.333 · 12 = 1.393 · 15 = 1.468 · 20 = 1.556. One basement level = 1.197, two = 1.299, three = 1.393.
Renovation costs less than new build
The built-building index: new construction = 1. Moderate renovation = 0.225. Heavy renovation = 0.325. Restoration ranges 0.150 to 0.325 depending on grade. Renovating is charged at roughly a quarter to a third of building new.
Prasarana unit prices, Denpasar
Charged separately from the building itself:
| Item | Rate |
|---|---|
| Fence | Rp 4,500 per m |
| Retaining wall | Rp 42,000 per m |
| Swimming pool | Rp 10,000 per m² |
| Paving or road | Rp 1,600 per m² |
| Concrete surface | Rp 24,000 per m² |
| Septic tank or infiltration well | Rp 22,000 per m² |
| Underground water reservoir | Rp 63,000 per m² |
| Gapura | Rp 371,000 per m² |
| Electrical installation | Rp 280,000 per unit up to 10 m², then Rp 28,000 per m² |
| Towers, chimneys, telecom masts | 1.75% of construction cost |
A 40 m² pool therefore adds about Rp 400,000 to the retribution. Not the number most people expect.
Badung, Gianyar and the other regencies
Each sets its own SHST and its own index tables by local regulation. Badung's current instruments are Perda No. 7 of 2023 as amended by Perda No. 8 of 2025, which expressly extends the PBG service definition to cover SLF issue, technical consultation, building inspection, the SBKBG and printing of the SLF plaque.
Do not assume Badung matches Denpasar. We were unable to retrieve Badung's published Ilo table and SHST figure, and any adviser quoting you a Badung rupiah figure should be able to show you the Keputusan Bupati it comes from.
What is a government fee and what is not
| Cost | Type |
|---|---|
| PBG retribution | Government. The only mandatory one |
| Planning consultation | Government, free |
| SLF, SBKBG, SLF renewal | Government, free |
| Technical assistance inspection for a house | Government, chargeable |
| Architect, structural and MEP consultants | Private, unregulated |
| Construction supervision | Private. Required to issue the fitness statement |
| Certified technical assessor for SLF renewal | Private. Owner pays |
| Soil investigation, flood-level recommendation | Private. Soil study not required up to 2 storeys |
| Permit agent | Private, entirely commercial |
When a package price lands in your inbox, the government portion of it is usually the smallest line. Ask for the retribution to be shown separately, with the calculation.
Villas: the classification that changes the bill
The elucidation of Article 5 of PP 16/2021 puts hotels, guesthouses, hostels, motels and boarding houses in the business function. Residential function covers only single houses, row houses and apartments.
Building function follows the prioritised activity. A villa you live in is residential, function index 0.15. A villa let out nightly is being operated for profit, which points to the business function at 0.7, and Article 11(2) obliges the owner to apply for a PBG perubahan when the function changes.
The knock-on effects are real: the retribution multiplies, SLF validity drops from 20 years to 5, and business licensing under PP 28/2025 applies with PBG and SLF as basic requirements.
Being straight about the limits of this: no article says in terms "a rented villa is a business building". It follows from reading the function rules together, and local technical offices vary in how they treat it. Ask your Dinas Teknis before you assume.
Building without one
Article 253(4) requires the PBG before construction. Article 263(1) says construction begins after the PBG is obtained. The sanctions run from written warning through restriction and suspension to an order to demolish, and the criminal provisions reach five years and a fine of 20% of building value where a failure causes death.
Enforcement in Badung is not theoretical. Satpol PP recorded 194 building violations without a PBG during 2025, 110 of them in Kuta Utara alone. Thirty-five businesses were sealed. A 70-unit villa project in Kerobokan Kelod was halted because the developers held only an NIB and KKPR and could not produce a PBG, despite correct zoning. And 48 illegal buildings were demolished at Pantai Bingin in July 2025 under a Regent's order.
An NIB and a KKPR are not enough. That was the Satpol PP head's own point after the Kerobokan case. Business registration and spatial conformity are upstream requirements. Neither of them lets you build.
Common questions
How much does a PBG cost in Bali?
There is no fixed price. It is calculated as floor area times locality index times SHST times the integrated index times the built-building index. For a modest house the retribution often lands in the hundreds of thousands of rupiah. For a commercial building the function index alone multiplies it several times over.
Is the SLF free?
Yes. Article 276(3) of PP 16/2021 states the SLF and SBKBG are issued without charge, and Article 302(3) extends that to renewals. What you pay for on renewal is the certified technical assessor's inspection, which is a private cost.
Is renovation cheaper than new construction?
Yes. In Denpasar the built-building index is 1 for new construction, 0.225 for moderate renovation and 0.325 for heavy renovation, so renovation is charged at roughly a quarter to a third of the equivalent new build.
Does a swimming pool need a permit and what does it cost?
Pools are charged as building prasarana. In Denpasar the rate is Rp 10,000 per square metre, so a 40 m² pool adds around Rp 400,000 to the retribution.
Do I need a PBG if I already have an IMB?
No. Article 346 preserves existing IMBs and they remain valid. But any new construction, alteration, extension, reduction or renovation from that point needs a PBG.
Getting the calculation checked
The two numbers that decide your bill are the building function and the SHST your regency has set for the year. Both are checkable before you file. We routinely find applications classified into the wrong function, which is an expensive error in both directions.
We advise on building permits and property compliance in Bali. For the process itself see our guide to applying through SIMBG, and for what comes after construction see the SLF certificate. If you want your figures sanity-checked, get in touch.
General information on Indonesian law as at August 2026, not legal advice. Index values and SHST figures are set locally and change. Denpasar figures are taken from Perda No. 5 of 2023; other regencies differ. Confirm current values with your regency before budgeting.
Sources
- PP No. 16/2021: Articles 11, 253, 261, 263, 274, 276, 297, 302, 327, 346, and Annex VIII B
- Perda Kota Denpasar No. 5/2023, Annex III
- Perda Kabupaten Badung No. 7/2023 as amended by Perda No. 8/2025
- UU No. 28/2002 on Buildings, as amended by UU No. 6/2023
- PP No. 28/2025 on risk-based business licensing
- Ditjen Cipta Karya briefing on PBG retribution, Ministry of Finance DJPK