PBG and SLF Process for Commercial Property in Indonesia – A Complete 2025 Legal Guide by The Bali Lawyer
Owning or developing commercial property in Indonesia requires careful adherence to legal procedures, especially regarding the PBG (Persetujuan Bangunan Gedung) and SLF (Sertifikat Laik Fungsi) processes. In 2025, Indonesian authorities continue to enforce regulations under the updated building law framework, and failure to comply can lead to penalties, operational restrictions, or even the loss of your investment.
At The Bali Lawyer, we provide professional legal assistance to ensure your commercial project—whether in Bali, Jakarta, Surabaya, Lombok, or any other region—meets all current regulations and is fully certified for lawful construction and operation.
Understanding the Legal Importance of PBG and SLF for Commercial Property
Whether you are opening a hotel, restaurant, office building, retail center, warehouse, or co-working space, you must follow two critical legal procedures:
PBG – Approval to build, required before construction starts
SLF – Certificate of building function, required before the building is occupied or used
These two documents replace the old IMB (Izin Mendirikan Bangunan) and form the legal backbone for construction and operation of commercial spaces in 2025.
What Is PBG (Persetujuan Bangunan Gedung)?
PBG is the mandatory legal permission to begin any construction. It confirms that your planned commercial building:
Complies with zoning and spatial planning
Meets safety, architectural, and environmental standards
Aligns with regional development policy
Includes accessibility, sanitation, and disaster preparedness
You must obtain the PBG before laying a single brick. Any commercial construction without PBG is considered illegal and may be forcibly halted or demolished.
What Is SLF (Sertifikat Laik Fungsi)?
SLF is the final certification that confirms your completed building is:
Structurally safe and compliant
Matches the plans approved under your PBG
Legally fit to be used or operated
Ready for occupancy, rental, or commercial activity
No commercial activity can be legally launched without an SLF. This includes applying for a business license, getting electricity or water connected, or receiving insurance coverage.
Step-by-Step PBG and SLF Process for Commercial Property
The process for obtaining PBG and SLF in 2025 involves several stages, each with its own legal requirements and technical demands. At The Bali Lawyer, we assist you through every step to avoid delays, mistakes, or legal issues.
Phase 1: Obtaining the PBG – Building Approval
Step 1: Confirm Legal Land Status
Before applying for PBG, ensure the land is legally yours or lawfully leased. Accepted documents include:
SHM (Sertifikat Hak Milik)
HGB (Hak Guna Bangunan)
Lease agreement (long-term rental for foreign investors)
PT PMA ownership agreements
We will verify these documents to confirm eligibility.
Step 2: Spatial Planning & Zoning Compliance
Each local government sets land-use and zoning regulations (RTRW and RDTR). Your commercial project must comply with:
Designated use (commercial, retail, hospitality, etc.)
Building height and floor area ratio (FAR)
Access to public roads
Environmental zoning restrictions
We check your project plan against these rules and assist with zoning approval if needed.
Step 3: Prepare Technical Drawings and Documents
You must submit full technical documents, including:
Architectural plans
Structural calculations
Utility layouts (electrical, plumbing, drainage)
Fire protection and sanitation systems
Accessibility design
Energy and ventilation systems
These must be signed by certified engineers or architects.
Step 4: OSS RBA Submission
In 2025, the only way to apply for a PBG is via the OSS RBA (Online Single Submission – Risk-Based Approach)platform. Our team will:
Register your NIB (Business ID Number)
Upload documents
Complete required declarations
Coordinate with Dinas PUPR or local planning office
After evaluation, the PBG will be issued digitally.
Phase 2: Obtaining the SLF – Certificate of Building Function
Once construction is complete, the building must pass final legal verification through the SLF process.
Step 1: As-Built Documentation
You will need to prepare updated documentation reflecting the completed building, including:
As-built architectural and structural drawings
Fire safety certification
Plumbing, electrical, and HVAC documentation
Accessibility and sanitation compliance
Photographs showing internal and external finishes
Consultant and contractor completion statements
We ensure that all documents match the originally approved PBG or submit amendments if minor changes occurred.
Step 2: Supervision Reports and Compliance Statements
During construction, qualified consultants must conduct regular inspections. These reports must be submitted during the SLF process to confirm:
The building followed approved plans
Structural and safety systems are functioning
Utility installations meet national standards
We assist in collecting, reviewing, and formatting these reports for legal submission.
Step 3: SLF Submission via OSS
Our legal team will once again submit your documentation via the OSS system, managing:
Uploads of supporting evidence
Submission of SLF request
Communication with local government officers
Monitoring progress and addressing feedback
Step 4: Government Inspection
After submission, the government will conduct an on-site inspection to verify:
Physical conformity with submitted plans
Emergency exits, fire systems, extinguishers, alarms
Utility function (power, water, drainage)
Sanitation and waste control
Environmental and public safety impact
We coordinate and prepare your site for this inspection and accompany your team during the process.
Step 5: Issuance of SLF Certificate
If your project passes inspection, you will receive the SLF—digitally and/or physically. This certificate:
Confirms your building is safe and operational
Allows you to begin commercial activities
Is required for licensing, insurance, leasing, and business registration
SLF Validity for Commercial Property
Valid for 5 years
Renewable upon inspection and documentation update
Must be renewed before expiration to avoid penalties or operational suspension
We offer SLF renewal services and help you track your certificate’s expiration.
Consequences of Skipping PBG and SLF in 2025
Operating or building a commercial property without proper permits leads to serious consequences:
Legal fines and project suspension
Denial of business license applications
Utilities disconnection
Loss of investor or partner trust
Public closures or legal prosecution
Inability to lease, sell, or insure the property
Avoiding these outcomes requires early legal compliance—The Bali Lawyer ensures your project is protected from the start.
Foreign Owners and Commercial Property Compliance
Foreign investors or companies must also obtain PBG and SLF before developing or using commercial property. We assist with:
PT PMA registration
Lease or usage agreements
NIB (Business Identification Number)
OSS portal application
All steps of PBG and SLF handling in Indonesian and English
Our bilingual team ensures full legal compliance for foreign-owned commercial developments.
Why Choose The Bali Lawyer for Your Commercial Project?
In-depth legal experience with commercial property regulations
Nationwide coverage including Bali, Jakarta, Java, Surabaya, Lombok
Technical partnerships with certified architects and engineers
OSS system management for submission and monitoring
Zoning, land use, and compliance advisory
Dedicated legal guidance from project start to certificate approval
Assistance with renewals, amendments, and inspections
We ensure every step of your PBG and SLF process is legally secure and professionally managed.
Types of Commercial Projects We Assist
We support the PBG and SLF process for all types of commercial properties, including:
Hotels and resorts
Shopping malls and retail outlets
Office buildings and co-working spaces
Restaurants and cafes
Warehouses and factories
Schools, gyms, clinics, and wellness centers
Mixed-use commercial-residential buildings
Stay Legally Compliant in 2025 and Beyond
The building legal framework in Indonesia continues to evolve. In 2025, all commercial property developments must follow the structured PBG and SLF process to avoid risks and protect your business.
At The Bali Lawyer, we offer a full-service legal solution to support your commercial ambitions while maintaining complete regulatory compliance.