Building Permits in Bali: Your Complete Guide to PBG/SLF Building Permit Regulation

  • Bali Villa Realty by Bali Villa Realty
  • 6 months ago
  • 0

If you’re an expat wanting to own a house or rent a property in Bali…

You should know about Persetujuan Bangunan Gedung (PBG) and Sertifikat Laik Fungsi (SLF).

These two documents are essential as they show the building permits in Indonesia. 

The PBG and SLF have taken over from an older permit called the Ijin Mendirikan Bangunan (IMB).

The PBG checks your property is meeting the right standards before building it…

Meanwhile, SLF ensures that your buildings are safe and used correctly.

In this article, you’ll learn how these two documents work and why they’re great for you as a homeowner or an investor in Bali.

Understanding PBG 

If you’re familiar with real estate in Bali, you may have heard about IMB.

IMB was a building permit based on the property function, like as a rental or a house …

Until it’s updated and replaced by PBG/SLF based on regulation No.16 of 2021.

Unlike IMB, PBG is more about meeting the right standards of how you should build the property.

It means that in PBG, you must submit your building plan according to layout, reliability, and design. 

Though the property owner dealt with acquiring these papers…

It’s super important for a property buyer to understand the local regulations to ensure your property is safe and meets all the local rules for design and use.

The Importance of PBG for Your Investment

Knowing that a property has a PBG certificate is crucial for you as an investor. It means:

  1. Legal Safety

The PBG certificate acts as a shield for your investment. Here’s how:

  • Verification of Compliance: When a property receives a PBG certificate, it means that local authorities have verified that the property meets all legal requirements for rental.
  • Avoidance of Legal Issues: With this certificate, you won’t have to worry about legal complications from renting a property.
  • Future-proofing Your Investment: Laws and regulations can change. A property with a PBG certificate is more likely to remain compliant even as regulations evolve.
  1. Ensuring property standards

A PBG certificate is not just a legal document; it’s a stamp of approval that the property meets all local building and safety standards. 

This means:

  • The building is structurally sound and safe.
  • It adheres to environmental and zoning laws.
  • It’s suitable for rental purposes according to local standards.
  1. Investment security

Properties with PBG are more attractive to renters, meaning you have better rental income.

How the PBG ensures the security of your investment:

  • Legal Protection: 

By ensuring that your property is legally compliant for rentals, the PBG protects you from legal troubles that could otherwise lead to financial losses or damage to your reputation.

  • Market Attractiveness: 

Properties with PBG certificates are more appealing to potential renters and buyers. They know these properties are legally safe, increasing their market value.

  • Future-Proofing: 

The real estate market and its regulations are constantly evolving. A property with a PBG certificate will likely adapt to future law changes, keeping your investment viable and compliant.

Acquiring PBG: The Process

Getting a PBG certificate might seem tricky, but it’s pretty straightforward. 

Here’s how property owners in Bali can get one:

  1. Initial Assessment: A property owner first checks if their property meets the standards for a PBG. The standards include ensuring the building is safe, follows environmental rules, and is suitable for its use, like renting out.
  1. Gathering Documentation: Next up, gather all the needed paperwork. This usually means having the building plans, proof that you own the land, and any old permits, like the IMB, if you have them.
  1. Application Submission: You send all these documents to the local government. Your application should have everything about your property and what you plan to use it for.
  1. Inspection by Authorities: After you submit your application, the local government will check out your property. They’ll make sure everything matches the rules for building and safety.
  1. Approval and Issuance of PBG: If your property passes the inspection and ticks all the boxes, you’ll get your PBG certificate. This is your green light to rent out your property legally.
  1. Regular Updates and Compliance Checks: Property owners need to keep their PBG up-to-date and follow any new rules.

A note for property owners: Getting a PBG can take some time, from weeks to months. It depends on how quickly you get your documents together and how busy the local authorities are. Sometimes, you might need to change your property to meet the standards.

The SLF Certificate and its Relation to PBG

Understanding the SLF certificate is key if you’re investing in property in Bali. 

It works with the PBG certificate to ensure your investment is solid and safe.

What is the SLF Certificate?

SLF stands for ‘Surat Laik Fungsi,’ which means ‘Certificate of Feasibility of Function’ in English. 

It’s a document that says a building is safe to use and fits its purpose. 

The Relationship Between PBG and SLF

Having PBG and SLF is a big win for property owners and investors. 

It means your place is legal for daily rentals and safe and suitable. 

This makes your property more trusted and valuable and protects your investment from legal or safety issues.

Why Both Certificates Matter for Investors

For property investors and owners, having both the PBG and SLF certificates means:

  • Comprehensive Compliance: The property is legally compliant for rental purposes (PBG) and certified as safe and suitable for use (SLF).
  • Enhanced Trust and Appeal: Properties with both certificates are more trusted by renters and valued in the real estate market.
  • Risk Mitigation: Possessing both certificates minimizes the risk of legal and safety issues, protecting your investment.

How can we help you?

Navigating the world of property investment in Bali, especially with legal stuff like PBG and SLF, can be overwhelming.

That’s where Ilot Property Bali comes in to make things easier for you.

Here’s How We Help:

  • Finding the Right Property: We can show you properties with PBG and SLF certificates.
  • Guiding You Through the Process: We’ll help you understand and check these certificates so you know everything is in order.
  • Legal and Compliance Advice: Our team gives you the best advice on how to stay within the law and make the most of your investment in Bali.

Click here now to get a free consultation on your first property investment in Bali.

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