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Building a Villa in Indonesia: PBG, SLF and the Approvals That Come First

Overhead view of an outlined land plot beside a road and nearby buildings near Mandalika, Lombok

Planning & permits Indonesia buying guide

Before a villa can be built and used, the land has to suit the spatial plan, the design needs a PBG, and the finished building needs an SLF.

5 min readChecked November 2026

Buyers still ask whether a plot "comes with an IMB". The old building permit (Izin Mendirikan Bangunan) was replaced by the building approval, PBG (Persetujuan Bangunan Gedung), under Government Regulation No. 16 of 2021. A finished building also needs a certificate of fitness for use, SLF (Sertifikat Laik Fungsi), before anyone moves in. This guide walks through the approvals a villa or small hospitality project in Lombok, Sumbawa or Sumba usually meets, in the order they tend to come up.

Start with what the land is zoned for

Every regency has a spatial plan (RTRW), and some areas also have a detailed spatial plan (RDTR). These decide what can be built where: housing, tourism accommodation, agriculture, conservation and so on. A PBG application is checked against them, so a design that does not suit the zone will stall at review.

For business activities, which include renting a villa to guests, suitability with the spatial plan is confirmed through a spatial-use approval known as KKPR, processed in the OSS licensing system. Government Regulation No. 28 of 2025 on risk-based licensing, which replaced Government Regulation No. 5 of 2021, lists KKPR, environmental approval, PBG and SLF as basic requirements, with KKPR coming before the PBG.

Ask for the spatial planning information for the parcel before you agree a price. The regency's public works or spatial planning office can usually tell you the zone, the maximum building coverage, height limits and required setbacks from roads and rivers.

Coastal setbacks on beachfront land

Presidential Regulation No. 51 of 2016 sets the coastal setback (sempadan pantai) at a minimum of 100 metres inland from the highest tide mark. The actual width should reflect the shape and condition of the coast, and each regency fixes its line in its spatial plan. Inside the setback, buildings are limited to facilities that support beach recreation, and activities that reduce the area or its ecological value are restricted.

This matters for pricing. A beachfront parcel whose usable building area begins 100 metres back is a different proposition from one where you assumed you could build close to the sand. Measure the setback on a survey drawing before you plan villas, a pool or a restaurant. Our guide to evaluating beachfront land covers the other coastal checks.

Environmental approval

Depending on the size and type of project, environmental approval ranges from a simple statement letter for small activities to an environmental management plan (UKL-UPL) or a full impact assessment (AMDAL) for larger developments. The category is decided by the activity and its scale, so ask your consultant early. A single private house and a resort with a restaurant and staff housing will not be treated the same way.

Applying for the PBG

The PBG is the approval to build, alter, extend, reduce or maintain a building in line with technical standards. Applications go through SIMBG, the national building information system. For businesses, SIMBG is now integrated with OSS, so a company building facilities for its operations applies through OSS.

A typical application includes:

  • Land data: the land certificate, or proof of your right to build on land held by someone else, such as a registered lease.
  • General data: the owner, building function, floor area, number of storeys and location.
  • Technical plans: architecture, structure, and mechanical, electrical and plumbing drawings prepared by certified professionals. Under the current rules, buildings of up to two storeys do not need a soil investigation, although your engineer may still recommend one on slopes or fill.

A panel of experts appointed by the regency reviews the plans and may ask for revisions. Once the design is accepted, the regency calculates the PBG levy (retribusi), which is set by regional regulation and based on floor area, building function and complexity, and a local unit price. The PBG is issued after the levy is paid.

The regulations set service times in working days, but in practice the pace depends on how complete the drawings are and how many revision rounds the review needs. Allow time for this in your project schedule, and do not start construction before the approval is in hand.

During construction

Build to the approved drawings. Changes to the footprint, height or function generally need an updated approval, and inspections can take place during construction. Keep a record of the contractor's work, material certificates and photos of structural stages. You will need them for the next step.

The SLF: fit for use

The SLF is issued by the regency government and confirms that a building is fit for its intended function. It has to be obtained before the building is occupied. For a new building, the SLF is issued after a statement of fitness and as-built drawings are uploaded, and there is no charge for the certificate itself.

SLFs are renewed: every 20 years for single and terraced houses, and every 5 years for other buildings. If you plan to rent the villa commercially, ask your consultant which building class applies, because it affects both the review and the renewal cycle.

Buying land with an existing building

If the plot already has a house or warung on it, ask for its PBG or old IMB and any SLF. A building without approval is not automatically unusable: the current rules allow a PBG and SLF to be issued together for an existing building after a technical assessment and payment of the levy. That process costs time and money, and the assessment may require changes, so price it in before you buy.

Renting to guests is a business

Using a villa for paid stays is a business activity. It needs a business identification number (NIB) and the licences for that activity through OSS, alongside the building approvals above. Foreign owners usually operate through a foreign-owned company. Our guide to ownership and company structures explains the options.

A practical sequence

  1. Check the zone, coverage limits and setbacks for the parcel.
  2. Confirm land rights and boundaries, and commission a survey.
  3. Decide the use (private home or rental) and the ownership structure.
  4. Obtain KKPR and environmental approval where required.
  5. Prepare certified drawings and apply for the PBG.
  6. Pay the levy, receive the PBG and build to plan.
  7. Upload the fitness statement and as-built drawings, and obtain the SLF before use.

Buyer note: Zoning and setback lines are parcel-specific. A listing description cannot confirm them. Get written spatial planning information for the exact certificate before you commit.

Sources

Property examples to compare

Setbacks and zoning shape what can be built on 5.8 Ha Beachfront Land at Torok Beach, South Lombok, 6 Ha Beachfront Land in Nambung, South Lombok and Glampar Beachfront Land, Kertasari, Sumbawa. Ask our team for the survey and certificate details so your planner can check them.

Planning a build on a listed plot?

Tell us what you want to build. We can share the parcel documents your architect and planning consultant need for an early zoning check.

Editorial note: This guide is general education, not legal, planning or engineering advice. Building rules and local regulations change. Confirm requirements with the regency office and licensed professionals.