Complete Guide to Obtaining a Villa Construction Permit in Bali – 2025 Update by The Bali Lawyer
Building a villa in Bali is a dream for many investors, developers, and private individuals. With the island’s continued growth in tourism and property investment, villas are among the most popular types of residential and commercial developments. However, before starting construction, it is essential to comply with Indonesian legal requirements and obtain the appropriate permits.
At The Bali Lawyer, we specialize in legal services related to property and construction in Bali, including all processes related to villa construction permits. This comprehensive 2025 guide will walk you through the process of legally building a villa in Bali, from zoning approvals to final occupancy certifications.
Why You Need a Construction Permit for Villas in Bali
In Indonesia, and especially in Bali, construction without a legal permit is strictly prohibited. The government enforces regulations that ensure safety, compliance with zoning, environmental protection, and sustainable development. Any villa constructed without proper permits may face demolition orders, fines, or difficulties in obtaining operational licenses, especially for rental use.
A proper construction permit not only ensures your project is lawful but also protects your investment and facilitates future resale or business licensing.
The Legal Framework for Villa Construction in Bali
As of 2025, the process of obtaining a construction permit in Indonesia follows a new structure. The previously used IMB (Izin Mendirikan Bangunan) has been officially replaced with the PBG (Persetujuan Bangunan Gedung). Every villa project must now comply with the PBG regulations and the national Online Single Submission (OSS) system.
Other permits and documentation often required include:
KKPR (Kesesuaian Kegiatan Pemanfaatan Ruang) – Spatial Use Approval
SLF (Sertifikat Laik Fungsi) – Certificate of Function Worthiness
UKL-UPL / AMDAL – Environmental Management and Impact Assessments
These legal requirements ensure that your construction adheres to zoning, safety, and environmental laws.
Step-by-Step Process to Obtain a Villa Construction Permit in Bali
1. Land Ownership and Legal Due Diligence
The first step in building a villa in Bali is ensuring that the land is legally owned or controlled. If you are a foreign investor, you must follow Indonesian laws regarding foreign ownership—typically through a PT PMA (foreign-owned company), a long-term lease agreement, or nominee structures (used with caution and legal support).
Key documents required:
Land Certificate (SHM or SHGB)
Sale and Purchase Agreement or Lease
Zoning Information
Land Tax Proofs (PBB)
The Bali Lawyer will conduct due diligence to confirm that the land is free of disputes, has proper ownership, and can legally be used for villa construction.
2. Obtain KKPR (Zoning Approval)
The KKPR is the document that verifies whether the land is designated for residential or tourism accommodation. You cannot begin the villa construction permit process without this zoning clearance.
KKPR approval is applied through the OSS RBA (Risk-Based Approach) platform and reviewed by the local government. Requirements include:
Land location map
Ownership documents
Business profile (for PT or PT PMA)
Once zoning approval is obtained, you can move forward with the construction design phase.
3. Architectural and Structural Planning
You will need to appoint a certified architect or engineering consultant to prepare the design documents. These plans must adhere to national and local building codes and include:
Architectural drawings (floor plans, sections, elevations)
Structural analysis reports
Mechanical, electrical, and plumbing plans
Site and topography plans
Accessibility and safety features
The plans must reflect intended villa use—whether private residence, guest rental, or commercial operation.
4. Submit PBG (Construction Approval) Application
With the designs completed, the next step is submitting a PBG request through the OSS system. The application will be reviewed by the Ministry of Public Works and local building authorities.
Documents required include:
KKPR approval
Technical design documents
Identity documents (passport or company registration)
Proof of land ownership or lease
Environmental impact documents (if applicable)
The approval timeline typically ranges from 30 to 60 working days depending on the completeness and compliance of your submission.
5. Environmental Clearances (UKL-UPL / AMDAL)
If your villa is located in a protected zone or is part of a larger development (e.g., a villa resort), you may need to obtain additional environmental licenses. These include:
UKL-UPL – Required for medium-scale villas (based on land size and impact)
AMDAL – Required for large-scale villa complexes or developments impacting ecosystems
Environmental permits must be obtained before or concurrently with PBG applications.
6. Begin Construction Legally
Once your PBG is issued, you are legally allowed to start construction. It’s important to follow the approved design exactly, as any changes may require new approvals or risk noncompliance.
During construction, inspections may be conducted by local authorities to ensure compliance with structural and safety codes. Proper signage and on-site documentation are required throughout the construction process.
7. Apply for SLF (Certificate of Worthiness to Use)
Upon completion of the villa, the SLF is required to confirm that the building is safe, functional, and in line with its intended use. This document is essential if you plan to rent out the villa for short or long-term stays.
SLF inspections include:
Fire and safety systems
Structural verification
Compliance with original design
Environmental management
Utility inspections
An SLF is mandatory for licensing the villa as a guesthouse, hotel, or holiday rental.
Key Considerations for Foreign Owners
Indonesia has specific regulations for foreign investors interested in owning property or constructing villas. Foreigners cannot directly own land under freehold titles but can:
Establish a PT PMA to legally build and operate a villa
Lease land for up to 80 years under Hak Sewa (Leasehold)
Work with trusted legal advisors to navigate nominee structures (with caution)
At The Bali Lawyer, we guide you through the safest and most compliant ownership options and structure your villa project to comply with Indonesian investment laws.
Timeline to Get a Villa Construction Permit in Bali
While timelines may vary, the average process duration includes:
KKPR Approval: 10–20 working days
Architectural & Technical Planning: 30–45 days
PBG Approval: 30–60 working days
Environmental Permits (if applicable): 30–90 days
SLF Processing: 20–30 working days after completion
Engaging a legal expert from the beginning will reduce delays, avoid errors, and speed up the permitting process.
Common Mistakes to Avoid
Building on land not zoned for villa use
Not registering through OSS or missing PBG documentation
Skipping environmental permits in protected zones
Deviating from approved designs during construction
Failing to obtain SLF before renting out the villa
With The Bali Lawyer, these risks are minimized through professional oversight and proactive compliance.
Our Services at The Bali Lawyer
We provide full legal support and permit handling for villa construction projects in:
Bali (Canggu, Ubud, Seminyak, Uluwatu, Sanur, etc.)
Lombok
Gili Islands
Java
Other Indonesian regions with tourism and residential growth
Our villa construction permit services include:
Legal land due diligence
Zoning and spatial approvals (KKPR)
PBG permit application and follow-up
Coordination with architects and engineers
Environmental licensing
SLF final certification
Structuring for foreign investors (PT PMA, lease agreements)
Whether you are building a private villa or launching a commercial villa rental business, we handle the legal foundation to ensure your project is 100% compliant.
Building a villa in Bali is an exciting and valuable investment, but it must be approached with legal precision and care. The introduction of PBG and digital systems like OSS RBA in Indonesia reflects the government’s focus on transparency and compliance. Any mistake or delay in obtaining the right permits can jeopardize your investment and halt your development.
At The Bali Lawyer, we specialize in navigating the villa construction permit process from start to finish. With years of experience in real estate legal services, we ensure your project is fully approved, legal, and ready for occupancy.