Anteya Research
What Is IMB in Bali? The Old Building Permit and What Replaced It (2026)
July 15, 2026
IMB stands for Izin Mendirikan Bangunan, the building-construction permit Indonesia issued for decades before a villa could legally be built. Since the 2021 Cipta Kerja (Omnibus) reforms, the IMB has been replaced by the PBG (Persetujuan Bangunan Gedung, or Building Approval). Many older Bali villas were permitted under the old system and still reference an IMB, so buyers meet the term constantly on the secondary market. If you see an IMB on a listing today, it is usually a pre-2021 permit that now sits alongside its PBG-era equivalent.
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What an IMB actually was
An IMB was the government's permission to construct: it tied a building to an approved design, a specific plot, and a permitted use. For a foreign buyer, it was the document that said the villa was built with permission rather than informally.
Two points matter. It was a construction permit, not a title deed, so it says nothing about who owns the land or under which structure you hold it. And it is only as good as the building actually put up: if a developer added a floor or a room the permit never covered, paper and villa no longer match, and that gap surfaces at resale.
What land title is each villa sold under (Hak Pakai, HGB, or leasehold)?
Buyer inquiry, Anteya CRM, 2025
Buyers ask this because permit and title are two separate checks. The IMB (now PBG) answers "was this legal to build?"; the title answers "what do I actually hold?"
Why the term still matters in 2026
The IMB was superseded, but it did not disappear from the market. Many resale villas were permitted years ago, so their files open with an IMB rather than a PBG. You meet the acronym in listing copy, due-diligence folders, and older notary paperwork.
Anteya observation: In roughly two-thirds of the resale-villa conversations our team handled, the seller's documents referenced an IMB rather than the newer PBG. On the secondary market the old term is still the default, not the exception.
Newer projects hand over with the current paperwork, and buyers report it in those terms:
PBG certificate obtained
Buyer inquiry, Anteya CRM, 2025
An existing, valid IMB is generally treated as carrying over under the transition arrangements introduced with the 2021 building rules, rather than being cancelled. But the new framework speaks PBG, so any renovation, extension, or fresh construction is assessed under the current process. For how that handover reads for foreign buyers, see our guide to Bali building permits for foreign buyers.
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IMB vs PBG vs SLF, briefly
It is a permission-then-sign-off chain:
- IMB / PBG is the permission to build. IMB was the old label; PBG is the current one. It says the design and use are allowed on that plot.
- SLF (Sertifikat Laik Fungsi, Certificate of Worthiness of Function) is the sign-off after construction, confirming the finished building is fit to use. It matters most for larger or commercially operated buildings.
So the PBG (or legacy IMB) approves the plan, and the SLF confirms the result. Standalone glossary entries on each are on our list . Whether a villa needs an SLF depends on size and use, so treat it as a question for your notaris.
What to check on a villa that only has an IMB
An IMB with no PBG is not automatically a problem. It is a prompt to check three things:
- Validity and plot match. Confirm the IMB is genuine, current, and issued for this plot. Cross-check the permit number against the land documents.
- Structure matches permit. Walk the villa against the approved drawings. Count floors, rooms, and footprint. If it was extended beyond what the IMB covered, that has to be regularised, and the buyer often inherits the cost.
- Zoning fit. The permit should sit in a zone that allows what you intend. Daily rental is generally treated as legal only in tourism or commercial zones, so read permit and zone together. Our Bali zoning colour-code guide walks through the pink, yellow, and green designations.
Buyers planning short stays sense that the zone, not the permit, does the heavy lifting:
So for Airbnb ... We should choose a pink zone ? For more flexibility of way of rentals 🤔
Buyer inquiry, Anteya CRM, 2025
The instinct is broadly right. Read the zone off the official plan, not a blurry screenshot: plots near a boundary are where a casual reading goes wrong.
Common mistakes buyers make
- Treating the IMB as proof of ownership. It is a construction permit, not a title. Verify the land title separately.
- Assuming an old IMB is worthless. An existing valid IMB generally carries over; it is not re-issued as a PBG unless you build or change something.
- Skipping the walk-through. The most common resale surprise is a villa physically larger than its permit.
- Confusing permit with zoning. A valid permit in the wrong zone still limits how you can use the villa.
- Buying blind on the secondary market. Older villas concentrate the paperwork gaps; our guide to buying a resale villa in Bali covers the wider list.
For the source rules, see the Omnibus Law (UU No. 11/2020 Cipta Kerja) and its building-regulation implementer (PP No. 16/2021), where the PBG framework sits.
FAQ
We should choose a pink zone?
For short-stay letting, usually yes. Daily rental is generally treated as legal only in tourism or commercial zones, commonly labelled pink on Bali's spatial plan. A residential (yellow) zone suits living or longer leases but is weaker for daily rental.
What land title is each villa sold under, Hak Pakai, HGB, or leasehold?
Ask in writing per unit. Leasehold (Hak Sewa) is a contractual right to use for a term; Hak Pakai and HGB are certificated rights held through eligible structures. The title is separate from the permit, so check both.
Is an IMB still valid in 2026?
An existing, genuine IMB is generally recognised under the transition arrangements introduced with the 2021 reforms, so it does not simply expire. New building work is assessed under the current PBG process. Treat an old IMB as valid-but-legacy.
What is the difference between IMB and PBG?
They serve the same purpose at different times. IMB (Izin Mendirikan Bangunan) was the old construction permit; PBG (Persetujuan Bangunan Gedung) is the current approval that replaced it in 2021. Older villas show an IMB; new projects, a PBG.
Do I need an SLF as well?
Sometimes. The SLF (Sertifikat Laik Fungsi) certifies a finished building is fit for use, and it matters more for larger or commercially run buildings than a small private villa. Whether it applies depends on size and use, so confirm with your notaris.
Anteya Research is the editorial function of Anteya Real Estate, a Bali-based investment property advisory. This article reflects patterns across 5,308 buyer conversations logged in the Anteya CRM between 2023 and 2026, supplemented by first-hand observations from our Bali-based team.
This article is general information, not legal advice. Indonesian real-estate rules change and individual situations vary. Consult a licensed Indonesian notaris (notary) for your specific purchase.
