Can foreigners build in Bali? Yes, of course. But, you’ll need to secure the right Bali building permits such as PBG (Persetujuan Bangunan Gedung), SLF (Sertifikat Laik Fungsi), SBKBG (Surat Bukti Kepemilikan Bangunan Gedung), and RTB (Rencana Teknis Pembongkaran).
Without these permits, your villa project will be considered illegal and cannot be used for investment or rental purposes. Even worse, you may face fines or have your building demolished by authorities.
But don’t worry, obtaining these permits is a straightforward process when you have the right guidance. Keep reading to learn about the application steps, required documents, costs, and legal tips for building in Bali.
Key Takeaways
- The main Bali building permits include:
- PBG (Building Approval) — required before construction to ensure your villa meets safety, zoning, and design standards.
- SLF (Certificate of Building Function) — issued after completion to prove the building is safe and ready for use or rental.
- SBKBG (Proof of Building Ownership) — confirms who legally owns the building.
- RTB (Demolition Technical Plan) — required when demolishing or rebuilding a structure.
- Without these permits, your villa is considered illegal and may face fines, restrictions, or demolition by local authorities.
- The PBG application is now fully digital through the SIMBG system, making the process simpler when handled by licensed professionals.
- Costs depend on location, building type, and complexity — plus professional fees for architects, contractors, and engineers.
1. PBG (Persetujuan Bangunan Gedung)
What is PBG?
The building permit PBG stands for Persetujuan Bangunan Gedung or “Building Approval”. It’s the new version of the old IMB (Izin Mendirikan Bangunan) permit, officially introduced under Government Regulation No. 16 of 2021.
The main purpose of a PBG is to ensure your villa’s design and construction follow Bali’s safety, zoning, and environmental standards. Unlike the IMB, which was more administrative, the PBG looks deeper into:
- Building structure and materials
- Design and architectural layout
- Compliance with local zoning (residential, tourism, commercial)
- Safety and environmental impact
This permit belongs to the landowner or developer, but if you’re buying the villa, it’s your right to ask for a copy. It’s a sign the property was built properly and can be legally used or modified.
If you’re building a new villa, your architect or project manager must apply for a PBG before construction starts. Without it, the project may be stopped or declared illegal.
How to Apply for a PBG Permit in Bali?
The PBG application process is now fully digital through the government’s Building Management Information System (SIMBG) at https://simbg.pu.go.id. Here’s the step-by-step process:
- Hire a licensed architect to create a complete design and layout.
- Prepare documents, including your land certificate and ID.
- Submit your application via SIMBG.
- The local authorities will review and inspect your design.
- Once approved, your PBG is issued, and you can begin construction.
Read More: Find Your Dream Architect for Your Bali Villa: A Simple Guide
How Long Is a PBG Permit Valid?
The PBG remains valid for the lifetime of the building, as long as its design and structure remain the same. If you modify the building (extend, renovate, or change its function), you must update the permit.
2. SLF (Sertifikat Laik Fungsi) Certificate
What is an SLF?
Once construction is complete, the next important document is the SLF or Sertifikat Laik Fungsi (“Certificate of Building Function”). This permit proves your villa is safe, habitable, and built according to the approved PBG.
Without an SLF, you cannot legally rent out your villa — including on Airbnb, Booking.com, or any short-term rental platform.
In addition, Indonesia’s SLF certificate divides buildings into categories such as:
- Residential homes and villas
- Business or tourism (villas, guesthouses, apartments)
- Religious or cultural buildings
- Social and public buildings
How to Apply for an SLF?
You can apply for the SLF after construction is completed through the same SIMBG platform. Steps include:
- Submit the approved PBG and completion report.
- Provide inspection results proving the villa meets safety standards (electricity, water, waste, air quality).
- The government reviews your documents and may inspect the property.
- Once approved, your SLF certificate is issued. Now you can rent out your villa legally.
How Long Is an SLF Permit Valid?
This document has different validity periods:
- 20 years for residential properties
- 5 years for commercial or business properties (e.g., villas, apartments, hotels)
When it expires, it must be renewed before the property can continue operating.
With over 20 years of experience helping expats create their homes in Bali, here’s what we do best:
- Design a villa that matches your style, personality, and vision
- Guide you through the entire building process, from start to finish
- Manage your villa long-term to maximize quality and returns
3. SBKBG (Surat Bukti Kepemilikan Bangunan Gedung)
The SBKBG (Surat Bukti Kepemilikan Bangunan Gedung) is a certificate issued by the government as official proof of building ownership. It confirms that the person listed on the document is the legal owner and holds full responsibility for the property.
The SBKBG is different from the land certificate, which shows who owns the land, not the building. In addition, this document is usually issued together with the SLF.
Main functions of the SBKBG:
- Confirms the legal ownership of the building.
- Verifies that the structure was built according to regulations and complies with technical safety standards.
- Acts as an official record of who owns the building.
Read More: Buying vs Building Villa in Bali: 9 Key Factors to Consider
4. RTB (Rencana Teknis Pembongkaran)
Before tearing down any structure, owners must submit a Demolition Technical Plan, or RTB (Rencana Teknis Pembongkaran), to the local government. This plan outlines which building will be demolished and how the process will be done safely.
To ensure the demolition meets technical and safety standards, the process must involve qualified experts, such as professional engineers or certified construction specialists.
Important notes:
- The government must approve the RTB within 28 working days after submission (depending on the type and classification of the building).
- The RTB is only valid for the duration of the demolition work.
Documents Needed to Apply for a Building Permit in Bali
When applying for a building permit in Bali, make sure you have the following documents ready:
- A completed application form
- A copy of your ID (KTP for locals or passport for foreigners)
- Proof of land ownership, such as a land certificate
- A power of attorney, if someone else is submitting the application on your behalf
- Approved architectural or engineering plans prepared by a licensed professional
- Detailed drawings of the structure, layout, and design
- Receipt of payment for the permit or retribution fee
- Additional studies like environmental or traffic impact reports (for larger or more complex projects)
How Much Does a Building Permit Cost in Bali?
The cost of getting a building permit in Bali can vary based on the project’s location, purpose, and complexity. Each region sets its own retribution or local fees, but the total price is usually affected by factors such as:
- The size and height of the building
- The type of property (residential, commercial, or industrial)
- Whether an environmental impact study is required
In addition, you’ll need to budget for professional services (such as architects and contractors) who prepare and submit all the necessary plans and documents. You can check the current Bali architect fees here.
Read More: How Much Does It Cost to Build a Villa in Bali?
Understanding Bali Building Regulations and Construction Standards
Bali follows strict building regulations to make sure every project is safe, sustainable, and respectful of local culture. Here are some of the main rules you should know before building:
- Height limits: In most tourist areas, buildings can’t exceed 15 meters, while other zones allow up to 18 meters.
- Architectural harmony: Designs should reflect Balinese culture and aesthetics, blending with traditional surroundings.
- Earthquake safety: Builders must use strong materials and proper structures to ensure seismic resilience.
- Eco-friendly approach: Projects are encouraged to use sustainable, locally sourced materials that protect the environment.
- Safety systems: Every building must include fire exits, sprinkler systems, and good drainage for water management.
Read More: How Steel Construction Works: Strengths, Costs & Considerations
What Happens If You Don’t Have PBG and SLF Permits?
Ignoring building permits like PBG and SLF might seem harmless at first, but it can turn your dream investment into a legal and financial nightmare:
- Fines, warnings, or stop-work orders — Local authorities can shut down your project or demand you redo parts that don’t meet regulations.
- No legal proof of ownership — Without proper documentation, proving you legally own or built the villa becomes difficult.
- Rental restrictions — You can’t legally rent out the villa, especially on short-term platforms like Airbnb, Booking.com, and more.
- Delays and extra costs — Missing permits often mean re-applying, paying penalties, or tearing down unapproved structures.
- Harder to sell later — Future buyers and investors avoid properties without complete papers, lowering your property’s value and marketability.
- Regulation changes — When laws shift, unregistered buildings are the first to face compliance problems or sudden enforcement.
So while paperwork might not be the most exciting part of investing in Bali, these permits are what protect your investment, secure your income, and build buyer trust.
FAQ
Yes, you definitely need a building permit to construct in Bali — it’s now officially known as a Persetujuan Bangunan Gedung (PBG), or Building Approval.
Permits relate to property or construction legality (like PBG or SLF), while visas are for personal stay or residency status in Indonesia.
Technically yes, but it’s much harder and may involve penalties or adjustments. It’s always best to get a PBG before construction begins.
Yes. Every type of building in Bali — including private homes — must have a PBG to be legally recognized.
Check their company license (NIB), previous projects, client testimonials, and whether they comply with legal permits like PBG and SLF.
Conclusion
That’s everything you need to know about the permits required to build a villa or any property in Bali—the right way and legally.
You’ll also need to follow a few Bali building regulations, such as rules on building height, design standards, and estimate the costs.
Don’t want the hassle of handling all the paperwork yourself? Ilot Property Bali is here to take care of everything — from architecture and interior design to construction, permits, and villa management.
You can simply sit back, monitor your project from Bali or abroad, and enjoy your villa once it’s done.
We’ve helped hundreds of expats over the past 15 years, turning their Bali dreams into reality. Click here to book a free consultation if you want to know how we can help — it’s completely free and with no obligation.
