What is PBG (Persetujuan Bangunan Gedung) aka Building Permit? – How do I get it?

As promised in the previous post about LAND ZONING

In today’s post we would like to talk about Building Permits in Indonesia and how to get them.

In Indonesia, a building permit is a document that an individual, company or organization must obtain from the local government before commencing construction. It serves as a legal authorization to ensure that construction complies with zoning regulations, safety standards and environmental considerations.

The primary purpose of a building permit is to regulate the construction process, ensure compliance with building codes, and minimize potential hazards to the safety of occupants and the environment. In addition, building permits play an important role in urban planning, maintaining order and preventing unauthorized construction, thereby contributing to the aesthetics and functionality of urban areas.

For those of you who have been living in Indonesia long enough, you must be familiar with the term IMB.

According to the Indonesian government, the IMB (Building Construction Permit) has been replaced by a new term called PBG (Building Approval).

Government Article No. 16/2021

In addition to changing names, IMB and PBG will differ in the following ways,

Building Function – PBG contains more details about the function of each building.
PBG is more detailed to prevent illegal buildings that do not comply with the urban planning regulations in each region. The Function of the building will be divided to: residential, religious, commercial, socio-cultural, special and multi-function.
The division of these functions certainly has a good impact on all Indonesian citizens, especially for high density developments, and also the condition of Indonesia, which is prone to natural disasters.
Therefore, the Indonesian government will also implement the SLF (Sertifikat Laik Fungsi) fit-for-purpose certificate.

SIMBG - Online Platform
One of the benefits of the new systems that all the processes and steps you need to take are easily accessible through an online platform.
The process will take approximately 28 days and you will be able to monitor the process online.

MDT Property Group has summarized the process of applying for PBG. Here are the simple steps you may want to know:

1. Submission of Technical Plan Documentation – Prior to submitting a PBG application, a Technical Plan Documentation must be submitted to the relevant government agency. This document includes 1) architectural plan; 2) structural plan; 3) utility plans; and 4) technical specifications of the buildings.
   _{^{Articles 187(2) and 253(1)).}}
2. Planning Consultation Registration – The applicant must first carry out the planning consultation process, which is initiated by submitting a planning consultation registration via the Building Management Information System (“SIMBG”) with the following information 1) applicant’s data; 2) building data: and 3) technical plan document, _{^{(Article 253 [6].[9][10]).}}
3. Technical Standard Compliance Check – Within a maximum of three working days of the submission of the list of design consultations, the Technical Assessment Team (“TPT”) or Technical Professional Assessment Team (“TPA”) will conduct an inspection of the technical standard documents, which will be completed in the following stages: 1) examination of architectural plans, and 2) examination of structural, mechanical, electrical and piping design documents. (Articles 245 and 255 [1]) If the technical standard documents pass the inspection, the TPA or TPT makes a makes a recommendation for the issue of a statement of compliance with the technical standards. _{^{(Chapters 255 [4] and [10])}}
4. Payment of the regional levy and issuance of the PBG – In order to obtain the PBG, the applicant must first pay a regional levy, the amount of which is determined on the basis of the integrated index and the unit price of the levy – The PBG will then be issued to the applicant by the One-Stop Investment and Services Agency (DPMTSP) upon receipt of proof of payment of the levy.
   _{^{(Article 261)}}

Overall, this is the basic understanding of how to process building permits in Indonesia.
With all the mixed information you may have heard from A developer, B estate agent or a friend of a friend.
MDT Property Group strongly advise you to seek legal advice on these procedures.

_{Disclaimer: All the above information is a summarized and transalation from an event held by ARERI (Asosiasi Broker Properti Indonesia) about PBG and SLF in Bali on 19^th June 2023.}