Industrial Building Permit in Indonesia – Complete 2025 Legal Compliance Guide by The Bali Lawyer
Building an industrial facility in Indonesia involves more than construction—it requires careful legal preparation and regulatory compliance. Whether you’re developing a manufacturing plant, logistics center, warehouse, or factory, obtaining a valid Industrial Building Permit, known as PBG (Persetujuan Bangunan Gedung), is a mandatory step in the legal process.
At The Bali Lawyer, we specialize in helping both local and foreign investors navigate the complex legal framework related to industrial development across Indonesia. This comprehensive guide explains the steps, requirements, and legal considerations involved in obtaining an industrial building permit in 2025.
What Is an Industrial Building Permit (PBG)?
A PBG is the official authorization from the local government allowing you to construct, modify, expand, or legally use a building. The PBG replaces the former IMB (Izin Mendirikan Bangunan) system, aligning with Government Regulation No. 16 of 2021 on Buildings.
For industrial purposes, a PBG is legally required before:
Starting construction of a factory or warehouse
Renovating or expanding an existing facility
Changing the building function (e.g., from storage to manufacturing)
Applying for operational licenses or utilities
Without a PBG, the construction is considered illegal, and your investment could be at risk of government penalties, business shutdown, or demolition orders.
Who Needs an Industrial Building Permit?
You are required to obtain a PBG for industrial use if you are:
A local or foreign investor developing a manufacturing facility
A business building a warehouse, logistics center, or production plant
A PT PMA (foreign-owned company) establishing industrial operations in Indonesia
A company expanding industrial infrastructure in Java, Bali, Sumatra, Kalimantan, or other regions
We assist clients operating under various structures—from domestic companies to international enterprises.
Key Benefits of Having a Valid Industrial PBG
Legal protection for your industrial investment
Access to utilities such as electricity and water
Ability to apply for SLF (Function Worthiness Certificate)
Compliance with regional zoning and industrial regulations
Eligibility to obtain environmental permits and operational licenses
Avoidance of fines, suspensions, or government enforcement action
Legal Land Status for Industrial Development
Before applying for a PBG, you must ensure the land you’re building on is zoned for industrial use and has legal ownership or usage status.
You will need:
HGB (Hak Guna Bangunan): The right to use land for building, valid for 30 years and extendable
A legal lease or purchase agreement
Zoning suitability: Land must be located in an industrial zone (Kawasan Industri)
Our legal team can verify land certificates, assess zoning compliance, and assist in converting land use if required.
Industrial Building Permit Requirements in 2025
To secure a PBG for industrial purposes, you must fulfill a range of administrative, legal, and technical requirements:
1. Land Ownership or Usage Documentation
HGB certificate or long-term lease
AJB (Sale and Purchase Deed)
Land map and coordinates
Proof of zoning compatibility (KKPR)
2. Company Legal Documents
NIB (Business Identification Number)
NPWP (Tax Identification Number)
Company establishment deed (for PT, CV, or PT PMA)
Domicile letter and business license
These confirm your legal standing as a company operating in Indonesia.
3. KKPR (Zoning and Spatial Planning Approval)
KKPR (Kesesuaian Kegiatan Pemanfaatan Ruang) is required to confirm that the land can legally be used for industrial construction.
It ensures that your building plans match government spatial plans, environmental standards, and industrial zones.
4. Technical Construction Drawings
Detailed construction plans must be submitted, including:
Site layout plans
Floor plans and building sections
Structural details (columns, slabs, foundations)
Mechanical, electrical, plumbing (MEP) systems
Drainage and sewage systems
Fire safety and emergency exits
Utility and logistics zones
Accessibility and safety features
All plans must be created and signed by licensed architects and engineers with valid SIPB licenses.
5. Construction Supervision Plan
Your project must be supervised by certified professionals throughout the construction phase. This includes:
Architect supervision
Civil engineer reports
Contractor compliance
Safety and quality assurance
You’ll need to submit documentation of these responsibilities when applying for your PBG.
6. OSS RBA Submission
All PBG applications must be submitted through the OSS RBA (Online Single Submission – Risk-Based Approach)platform, which categorizes projects based on risk level.
Steps include:
Registering or updating your NIB
Inputting land, company, and building data
Uploading technical and legal documents
Self-assessment checklist for risk category
Tracking application and approval status
We handle this digital process on your behalf, ensuring accuracy and regulatory compliance.
7. Environmental Approvals (AMDAL or UKL-UPL)
For industrial buildings, you must also comply with environmental regulations, which may include:
AMDAL (Environmental Impact Analysis) for high-risk projects
UKL-UPL (Environmental Management and Monitoring Efforts) for mid-scale projects
These must be completed before your PBG is approved and submitted through the same OSS platform.
8. Inspection and Approval
Once submitted, your application may trigger:
Document verification by local government agencies
On-site inspection by civil engineers or building officials
Cross-check of land use and zoning from the regional planning department
We coordinate inspections and liaise with government officials to ensure no delays or rejections.
SLF (Function Worthiness Certificate) After Construction
After your industrial facility is built, you must apply for an SLF (Sertifikat Laik Fungsi). This certificate confirms that your building:
Matches the approved PBG plans
Is structurally safe and legally functional
Complies with health, safety, and environmental regulations
The SLF is required before starting any operations. We also assist with the complete SLF application and renewal process.
PBG Validity and Renewal
The PBG remains valid as long as the building follows the approved plans. If you:
Modify the function of the building
Expand or renovate the facility
Change the ownership or business use
you must update your PBG accordingly. Our team can manage renewals and modifications for existing industrial buildings.
Timeline and Processing Duration
On average, the timeline for obtaining a PBG is:
Simple facilities: 3–6 weeks
Complex industrial sites: 2–3 months
Timelines vary based on project scope, document readiness, and inspection schedules.
Cost Considerations
The cost of obtaining a PBG depends on several factors:
Size and classification of the industrial building
Number of required technical drawings and consultants
Location and government service fees
OSS and environmental approval fees
Legal and professional services
We provide transparent, customized quotes based on your project scope.
Common Pitfalls to Avoid
Building in non-industrial zones without conversion
Submitting incomplete or incorrect documents to OSS
Using unlicensed professionals for technical drawings
Failing to obtain environmental approvals
Ignoring the need for an SLF after construction
Avoid costly mistakes by partnering with a professional legal team that understands every aspect of the process.
Why Choose The Bali Lawyer?
We are a trusted law firm based in Bali with extensive experience helping local and international clients handle industrial permits and property legalities across Indonesia.
We offer:
End-to-end legal assistance from land analysis to SLF certification
Land acquisition and zoning support
Architectural and engineering coordination
Full OSS RBA platform management
Inspection coordination and post-construction compliance
Services across Jakarta, Bali, Surabaya, Java, Kalimantan, and beyond
Our goal is to make your industrial development smooth, legal, and successful.