Building a house, villa, hotel, restaurant, warehouse, or commercial building in Bali requires more than just owning the land. You must also obtain the necessary building permits in Bali in accordance with applicable regulations. Since the government replaced the Building Construction Permit (IMB) with the Building Approval (PBG), the permit application process is now integrated through digital systems such as SIMBG and OSS.

Many property owners, investors, and developers still believe that the IMB is still in effect. In fact, the latest regulations require that all new construction and changes in building use follow the PBG mechanism and meet applicable technical and zoning requirements.

In this guide, you’ll learn about the entire building permitting process in Bali from required documents, fees, and application steps to estimated timelines and tips for streamlining the process and minimizing obstacles.

What Is Building Permitting in Bali?

Building permitting is a series of government approvals that ensure a building meets zoning regulations, safety standards, health and comfort requirements, and functional suitability before it is put into use.

In Bali, this process is particularly important because many areas have strict zoning regulations, especially in tourist areas, coastal zones, cultural areas, and regions with high conservation value.

Every construction project must take into account various aspects, such as:

• Compliance with regional spatial planning.
• Building Footprint Ratio (KDB).
• Building Floor Area Ratio (KLB).
• Building height.
• Drainage system.
• Structural safety.
• Fire protection.
• Accessibility.

If any of these requirements are not met, the permit application may be rejected or the applicant may be required to revise the design first.

Why Is the IMB No Longer Valid?

Many people still use the term IMB because it has been in use for decades. However, since the enactment of the Job Creation Law and its implementing regulations, the government has officially replaced the IMB with the Building Approval (PBG).

This change aims to simplify the permitting process while enhancing oversight of building quality. Under the new system, the government not only reviews permits before construction begins but also ensures that buildings meet technical standards until construction is complete.

For buildings that already held a Building Permit (IMB) prior to regulatory changes, that document generally remains valid as long as there are no changes in use or renovations requiring a new permit under applicable regulations.

Types of Building Permits in Bali

In practice, constructing a property in Bali often requires more than one type of permit. Each serves a different purpose, so it is important to understand them from the outset.

1. Building Approval (PBG)

The PBG is the primary approval required before construction begins. This document ensures that the building’s design meets technical, safety, and zoning standards, as well as the regulations applicable in the construction area.

All types of buildings—including residential homes, villas, hotels, restaurants, warehouses, offices, and industrial buildings—generally require a PBG before the construction process begins.

2. Certificate of Occupancy (SLF)

The SLF is issued after the building is completed and declared fit for use. This certificate confirms that the building’s condition aligns with the previously approved PBG documents.

Without an SLF, certain types of commercial buildings may face operational challenges or difficulties in obtaining subsequent business permits.

3. OSS and NIB

For buildings used for business activities, business owners must also obtain a Business Identification Number (NIB) through the OSS system. OSS serves as the primary gateway for various business permits in Indonesia and is linked to a number of government services, including processes related to building construction.

4. KKPR / PKKPR

Before applying for a PBG, the construction site must comply with zoning regulations. Therefore, under certain conditions, a Spatial Utilization Activity Compliance Document (KKPR) or KKPR Approval (PKKPR) is required as proof that the selected location is indeed designated for such activities.

This step is particularly important for the construction of villas, hotels, restaurants, or commercial projects located in areas with strict zoning regulations.

Complete Process for Obtaining a PBG in Bali

Understanding the process for obtaining a Bali building permit from the outset will help minimize the risk of document rejection or project delays. Although each regency or city may have slightly different administrative procedures, the main steps generally remain the same.

1. Determine the ownership status or land rights.
2. Ensure the location complies with spatial planning regulations through a KKPR or PKKPR, if required.
3. Prepare architectural, structural, mechanical, electrical, and plumbing (MEP) drawings.
4. Upload documents via the Building Management Information System (SIMBG).
5. Administrative verification and technical inspection by the relevant agencies.
6. Making revisions if there are notes from the inspection team.
7. Paying local fees in accordance with applicable regulations.
8. The Building Permit (PBG) is issued.
9. Construction is carried out in accordance with the approved drawings.
10. Once the building is completed, an inspection is conducted for the issuance of a Certificate of Occupancy (SLF) if required.

    Tip: Do not begin construction before the PBG is issued. Building without approval may result in administrative sanctions, suspension of work, or the requirement to make adjustments to the existing structure. Documents Required to Apply for a PBG in Bali

One of the main causes of delays in the permit application process is incomplete documentation. Therefore, all requirements should be prepared as early as the project planning stage.