Anteya Research
What Is a PBG in Bali? Building Permit Basics for Foreign Owners (2026)
April 5, 2026
A PBG (Persetujuan Bangunan Gedung, or Building Approval) is the Indonesian government's approval of a building's technical design, and since 2021 it has replaced the old IMB construction permit. For a foreign buyer in Bali, the PBG shows a villa or apartment is legally approved to be built as designed, on that specific plot, for its intended function. If a project has no valid PBG, the building sits outside the permit system, which creates resale, financing, and enforcement risk down the line.
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What a PBG actually is
The PBG came in through the 2020 Job Creation (Cipta Kerja) law and its building regulation, PP 16/2021. It approves the concrete facts of a building: floors, footprint, structural design, and declared function, checked against the national building code and the plot's local spatial plan. Developers apply for it before construction through the government's online building system, SIMBG.
One thing to note: buildings that already held a valid IMB before 2021 keep it. So an older project can legitimately reference an IMB while a new one references a PBG.
Why the PBG matters if you are buying off-plan
Most foreign purchases in Bali are off-plan, so you are paying for a building that does not exist yet. The PBG is one of the few documents proving the development has permission to build what the render shows.
It also ties to zoning: a PBG is granted in line with what the plot's zone allows. This is where buyers ask about pink (tourism) zones:
So for Airbnb ... We should choose a pink zone ? For more flexibility of way of rentals 🤔
Buyer inquiry, Anteya CRM, 2025
The short version: short-stay rental potential is a zoning and function question, and the PBG has to be consistent with the zone. A villa marketed inside a protected or agricultural (green) area can struggle to obtain a genuine PBG for tourist accommodation. Our Bali zoning basics piece walks through the colour system in detail.
PBG vs the old IMB, and where SLF fits
Three acronyms get mixed up, so here is the clean split:
- IMB (Izin Mendirikan Bangunan): the pre-2021 building permit, obtained before construction. Abolished and replaced by the PBG.
- PBG (Persetujuan Bangunan Gedung): the current approval of a building's design, obtained before construction.
- SLF (Sertifikat Laik Fungsi, Certificate of Worthiness of Function): issued after completion, confirming the finished building was built to the approved plan and is fit to occupy.
Put simply, the PBG approves the plan and the SLF signs off the finished result. A project can hold a PBG and still owe an SLF at handover. For the full comparison, see our guide to PBG and IMB building permits for foreign buyers.
Anteya observation: PBG and the old IMB are the most frequently confused pair in our permit conversations. Buyers routinely ask whether a project "has its IMB" when the document to ask for now is the PBG, and treat the two as quality tiers rather than one system renamed in 2021.
What to check before you buy
Ask to see the PBG, or clear proof it is in process, and ask which zone the plot sits in. Buyers often try to read the zone off a public map and get stuck:
Because i saw a map and when i zoom in... It gets kinda blurry bit still it looks like they are on the outside of the pink zone.
Buyer inquiry, Anteya CRM, 2025
A blurry public map is not a reliable answer; the plot's zoning classification and the PBG's declared function are. Confirm the PBG's function matches how you plan to use the property, especially if rental income is part of the plan. For a completed building, ask whether the SLF has been issued.
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Run this alongside the title question, which buyers usually raise in the same breath:
What land title is each villa sold under (Hak Pakai, HGB, or leasehold)?
Buyer inquiry, Anteya CRM, 2025
Title and permit are separate checks: the title governs your rights to the land, the PBG governs the building's legality, and both should line up before money moves. Permit and completion delays tend to travel together; our note on off-plan timelines and handover delays covers that.
Common mistakes buyers make
- Reading an old IMB reference in a brochure as proof a new build is permitted. New projects run on the PBG.
- Assuming a PBG grants short-stay rental rights. That depends on the zone and declared function, not the PBG alone.
- Confusing the PBG with the SLF, and assuming a finished villa is occupancy-ready because a permit exists.
- Seeing "PBG certificate obtained" in a listing and stopping there:
PBG certificate obtained
Buyer inquiry, Anteya CRM, 2025
That line is a good sign, but it covers the approved plan, not the finished, sign-off-ready building. Ask which document you are looking at, and its date, before treating the permit question as closed.
FAQ
Should we choose a pink zone?
For accommodation and short-stay rental, a pink (tourism) zone gives the most flexibility, since commercial and tourist use is intended there. A green or agricultural zone restricts what you can build, and a villa there may not obtain a valid PBG for tourist rental.
For Airbnb, should we choose a pink zone for more flexibility on rentals?
Generally yes. Short-stay rental sits best in tourism-zoned areas where the building's approved function supports it. A property approved only for residential use in a non-tourism zone is a weaker base for daily rentals.
How do I know if a project is inside or outside the pink zone?
Do not rely on a zoomed-in public map; the edges blur. Ask the developer for the plot's zoning classification and cross-check it against the PBG's declared function. A notaris can confirm the plot's status against the regency spatial plan (RDTR), set by Badung, Gianyar, or Tabanan.
Has the project's PBG certificate been obtained?
Ask directly, and ask for the document and its date. "PBG obtained" is a positive signal, but it refers to the approved design, not a finished building. For a completed unit, also ask whether the SLF (worthiness-of-function certificate) has been issued.
What land title is each villa sold under: Hak Pakai, HGB, or leasehold?
Title and permit are separate questions. The title governs your rights to the land; the PBG governs the building's legality. Foreign buyers usually hold through leasehold or a Hak Pakai or HGB structure. Confirm both the title and the PBG before funds move.
I'm looking to rent out. Does the zone matter?
Yes, a great deal. Rental use, especially short-stay, depends on the plot's zone and the building's approved function, not on the PBG in isolation. A tourism-zoned property whose PBG function supports accommodation is the cleaner base.
Anteya Research is the editorial function of Anteya Real Estate, a Bali-based investment property advisory. This article reflects patterns across 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.
