From IMB to PBG: A Comprehensive Guide to Building Permit Applications in Indonesia

Apr 14, 2025 | News

Building Permit

In recent years, Indonesia’s construction and building permit sector has undergone major reforms. These significant changes were triggered by the enactment of Law Number 6 of 2023 on the Stipulation of Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation as Law (“Job Creation Law”), which introduced a range of regulatory simplifications, including the replacement of the Building Construction Permit (Izin Mendirikan Bangunan or IMB) with the Building Approval (Persetujuan Bangunan Gedung or PBG).

This transformation reflects the government’s effort to streamline the ease of doing business and enhance compliance with spatial and technical planning standards. Unlike the IMB, which was based on a licensing model, the PBG is an approval granted based on the conformity of a building’s technical design with the norms, standards, procedures, and criteria, known as NSPK, established by the government.

The Transition from IMB to PBG under the Job Creation Law

Prior to the Job Creation Law, project developers were required to obtain an IMB as the primary prerequisite to commence physical construction. However, the Job Creation Law repealed the IMB provisions previously stipulated in Law No. 28/2002 on Buildings, otherwise Law 28/2002. 

Article 24 paragraph (1) of the Job Creation Law stipulates:

“Building Approval is a form of permit granted to a Building Owner to construct, modify, expand, reduce, and/or maintain a Building in accordance with technical building standards.”

This is not merely a change in terminology—it represents a shift to a standards-based and classification-based regulatory approach. The PBG focuses on functional, classification, and technical compliance in accordance with statutory requirements. In essence, the PBG is an approval issued by local or central government authorities to allow building activities, subject to the fulfillment of established technical standards.

Based on Article 24 paragraph (34) of the Job Creation Lawi:

  1. Building construction activities may only commence after obtaining a Building Approval;
  2. A Building Approval is issued once the central or regional government, according to its authority, confirms the fulfillment of technical building standards based on the norms, standards, procedures, and criteria established by the central government;
  3. Applications for Building Approval must be submitted to the central or regional government via an electronic system maintained by the central government.

Requirements and Procedures for PBG

Government Regulation No. 16/ 2021 on the Implementation of Law No. 28/ 2002 on Buildings, otherwise PP No 16/2021, regulates the procedures for obtaining a BPBG. Article 253 of PP No 16/2021 provides detailed provisions on the process:

  1. Article 253 paragraph (1) stipulates that the technical design documents must be submitted to the local city/regency or provincial government (such as DKI Jakarta), or the central government, to obtain a PBG prior to the commencement of construction;
  2. Paragraph (2) specifies that for Special Function Buildings (or Bangunan Gedung Fungsi Khusus or BGFK), the technical design documents must be submitted to the Minister. BGFK refers to buildings designated as cultural heritage in accordance with relevant cultural heritage legislation; 
  3. Paragraph (4) explains that the PBG as referred to in paragraph (1) applies to the construction of new buildings or supporting infrastructure, as well as the modification, expansion, reduction, or maintenance of existing buildings;
  4. Paragraph (5) states that the PBG process includes planning consultation and issuance of the approval. As per paragraph (5)(a), the technical design documents will be reviewed and approved during the consultation phase. Paragraph (7) mandates that the consultation process shall include registration, evaluation of technical standard compliance, and confirmation of compliance with technical standards;

Planning consultation under article d paragraph 5  is conducted free of charge. Meanwhile, registration as per article a paragraph must be initiated by the applicant or building owner through the Building Information Management System (Sistem Informasi Manajemen Bangunan Gedung or SIMBG) via the official website www.simbg.pu.go.id. 

The SIMBG is a web-based electronic platform used to administer PBG, Building Function Feasibility Certificates (SLF), Building Ownership Certificates (SBKBG), Building Utilization Certificates (RTB), and building data, including information related to the administration of building development.

The Importance of Building Classification in the PBG Process

Building classification plays a critical role in the regulatory and permitting system in Indonesia, particularly in the context of PBG. Article 9 paragraph 1 of PP No. 16/2021 provides that buildings shall be classified based on the following criteria:

  1. Level of complexity;
  2. Degree of permanence;
  3. Fire hazard risk;
  4. Location;
  5. Building height;
  6. Ownership status; and
  7. Building class.

This classification system simplifies the permitting process by aligning requirements with the characteristics of each building. Buildings with lower complexity are subject to less stringent requirements compared to high-risk structures. This prevents unnecessary bureaucracy while ensuring safety standards are maintained.

Building permit must also align with environmental and spatial planning conditions. For example, industrial or commercial buildings have a greater impact on infrastructure and the environment, requiring more comprehensive regulatory oversight than standard residential homes.

Thus, building classification is not merely an administrative category—it is a regulatory tool to ensure safety, feasibility, and construction efficiency. Understanding these classifications allows building owners to better comply with regulatory requirements and benefit from a more structured and efficient permitting process.

The transition from IMB to PBG under the Job Creation Law and PP No. 16/2021 demonstrates the Indonesian government’s commitment to streamlining the building permitting process while maintaining safety and regulatory order. Through the PBG system, the permitting process is now more transparent, accountable, and digitally integrated via the SIMBG platform.

Building owners, planners, and construction professionals are strongly encouraged to understand and comply with these new requirements. Awareness and compliance are essential to fostering orderly, safe, and sustainable development across Indonesia.

Baca juga: Akibat Pemasangan Plang di Properti Milik Debitur

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