Building Permit in Bali – Your Complete Guide from The Bali Lawyer
If you’re planning to construct, renovate, or expand a property in Bali, obtaining a building permit—known locally as IMB (Izin Mendirikan Bangunan)—is not just a legal requirement but an essential step to safeguard your investment. At The Bali Lawyer, we specialize in helping property owners, investors, and developers navigate Bali’s often-complex regulatory environment to secure the permits they need, quickly and correctly.
This comprehensive guide will walk you through the process of getting a building permit in Bali, what documents are required, common challenges, and how working with legal professionals ensures your project is compliant and protected.
Understanding the Building Permit (IMB) in Bali
The IMB is a mandatory government-issued license that authorizes the construction or modification of any building structure. It ensures that the planned construction complies with local zoning regulations, building codes, and environmental guidelines. Whether you’re building a villa, commercial property, resort, or private residence, an IMB is required before you begin any construction work.
In 2021, the Indonesian government began phasing out the traditional IMB and replacing it with PBG (Persetujuan Bangunan Gedung) or Building Approval. However, in Bali, both terms are still used interchangeably by local authorities and professionals, and many procedures remain similar.
Why You Need a Building Permit in Bali
Obtaining a building permit in Bali is legally required and protects you from penalties, including:
Fines or sanctions for unauthorized construction
Potential demolition orders
Problems with property resale or leasing
Legal barriers during property transactions
Issues with insuring the property
More importantly, having a valid IMB or PBG is essential for setting up utilities like water and electricity, and for acquiring licenses for commercial use.
Who Can Apply for a Building Permit in Bali?
A building permit can only be issued to the legal owner of the land or the registered leaseholder with the appropriate rights. In Bali, land ownership by foreigners is not permitted, so foreign investors typically acquire land through long-term lease agreements, or by setting up a foreign investment company (PT PMA).
If you’re a foreigner, you’ll need to structure your ownership through one of the following:
A local nominee (with legal safeguards)
Leasehold title under a long-term contract
A PT PMA company registered in Indonesia
At The Bali Lawyer, we guide clients through the best and safest legal structures based on your goals and help ensure full compliance with Indonesian land laws.
Step-by-Step Process of Obtaining a Building Permit in Bali
1. Land Status Verification
Before you start the permit application, it’s critical to verify the legal status of the land. The land must be designated for the intended purpose—residential, tourism, commercial, or agricultural—based on the local zoning regulations (RTRWor Rencana Tata Ruang Wilayah).
Without this step, your application could be delayed or rejected.
2. Prepare the Required Documents
Some of the essential documents include:
Land certificate (SHM or HGB)
Land ownership statement or lease agreement
Zoning clearance or spatial use permit (SLF)
Detailed architectural drawings
Environmental impact report (if applicable)
Application form signed by the owner or authorized party
Company documents (if applying through a PT PMA)
Each regency in Bali (Denpasar, Badung, Gianyar, etc.) may have additional document requirements.
3. Submission and Review
Once documents are complete, the application is submitted to the Department of Public Works or local government’s One-Stop Service Office (DPMPTSP). Officials will review the documents and architectural plans to ensure they align with zoning and technical regulations.
4. Field Survey and Inspection
A field inspection is typically conducted by government officers to validate the land location, measurements, and surrounding areas. They will check if the proposed building complies with building setback rules, height limits, and access regulations.
5. Issuance of the Permit
If all conditions are met, the building permit (IMB or PBG) is issued. This document includes a building plan, function of the structure, and permitted building parameters.
The permit must be displayed at the construction site and is valid for the approved building size, height, and usage. If you plan future changes, a permit amendment will be required.
Timeline for Getting a Building Permit
The average time required to obtain a building permit in Bali varies depending on:
The complexity of your project
The completeness of your documents
The zoning classification
The responsiveness of local government offices
On average, the process can take 4 to 12 weeks. At The Bali Lawyer, we streamline this process and help reduce delays by managing all interactions with local authorities and ensuring every step is correctly handled.
Cost of Getting a Building Permit in Bali
The cost of obtaining a building permit in Bali depends on several factors:
Type of property (residential, villa, commercial)
Size of the structure (measured per square meter)
Land zoning classification
Professional fees (for architects, engineers, consultants)
Government fees and taxes
Generally, fees are calculated based on the total floor area and the function of the building. Our legal team provides a clear breakdown of all costs upfront, with no hidden charges.
Common Challenges and How to Avoid Them
Zoning Conflicts
One of the most common issues is land being used for a purpose that doesn’t match its zoning. For example, building a villa on land designated for agriculture is not permitted. Our team conducts thorough zoning checks to avoid such pitfalls.
Incomplete Documentation
Missing or incorrect documents are a leading cause of permit delays. We assist clients in compiling all necessary paperwork accurately.
Language and Bureaucracy Barriers
Most of the application process is handled in Bahasa Indonesia, and dealing with multiple agencies can be frustrating for non-locals. We bridge the communication gap and manage all government liaisons on your behalf.
Legal Risks with Nominee Agreements
Using a local nominee without legal safeguards can expose you to significant risk. Our lawyers create secure, legally binding agreements to protect your investment and interests.
What Happens if You Build Without a Permit?
Construction without a valid permit in Bali is considered illegal. Penalties can include:
Government-issued stop-work orders
Heavy fines
Forced demolition of the structure
Difficulty in selling or transferring ownership
Problems registering utilities or business licenses
If you have already started construction without a permit, The Bali Lawyer can assist you in applying for a retrospective building approval and help resolve the situation legally.
Why Choose The Bali Lawyer?
At The Bali Lawyer, we are committed to helping you build with confidence in Bali. Our legal team combines deep local knowledge with international standards of professionalism. Whether you’re an individual, investor, or developer, we provide end-to-end assistance in securing your building permit, ensuring full compliance and peace of mind.
We offer:
Free initial consultations
Transparent pricing
Fast-track permit processing
Assistance with land due diligence
Legal structuring for foreign investors
Multilingual support team
Ready to Start Your Project in Bali?
Don’t let paperwork or red tape stand in the way of your dream property or investment in Bali. With the right legal partner, the process of obtaining a building permit becomes straightforward and secure.