General Overview
In all our day-to-day activities, buildings, in some shape or form, are where we spend a majority of our time, whether for living, commercial activities, or others. For whatever purpose we may set out to build an entirely new building or carry out various forms of changes or renovations to further suit the relevant needs or mandated requirements depending on the type of building and location.
Within Indonesia, Law No. 28 of 2002 on Buildings, as amended by Regulation of the Government in the Omnibus Law No. 2 of 2022, confirms that buildings can encompass both aboveground and/or underground with various types of activity, whether personal or commercial. In constructing and/or utilizing buildings, this legal framework mandates that the relevant owners or users should acquire certain building-related permits, which include:
PBG (Perizinan Bangunan Gedung):
In terms of PBG, said permits were earlier known as Building Construction Permits or IMB (Izin Mendirikan Bangunan), however, this permit is no longer valid following the implementation and enforcement of Regulation of Government No. 16 of 2021. As a result of this Regulation, Law 28/2002. One of the main areas that they address, and out of interest, is that current PBG allows for buildings to be classified for mixed-purpose, while its predecessor, the IMB, only allowed for buildings to be used for one function.
Law 28/2002 sets out that the above-described PBG and SLF should be applied for with the submission of applications to the central government and the relevant regional governments (provincial/regency) in line with their respective jurisdictions via the Building Management Information System (Sistem Informasi Manajemen Bangunan Gedung– “SIMBG”) This system is established by the Ministry of Public Works and Public Housing (PUPR). Regulation 16/2021 also states that the SIMBG should be utilized to secure other forms of documentation that relate to a building, such as mentioned PBG, SLF, building and land ownership, and demolition plans/permits if this is an option for your property.
Given that utilization of the SIMBG is mandatory for any and all existing building owners in order to secure a PBG, SLF, and SBKBG, this applies to any and all types of buildings, residential or commercial. Below outlines may help to create a better understanding of the process and the government’s aim with this, as well as making sure any type of existing building or new planned one gets it right to prevent later inspections and possible challenges with possible penalties. Below guidelines refer to relevant updated building regulations, as well as chats and discussions with government experts. Note that these are guidelines only, and each project should consider professional consultants, as each project may be slightly different. The guidelines have the following sections:
As briefly mentioned above, Indonesia’s regulatory framework makes it compulsory for all building owners to secure all relevant Building Permits. It is important to notice that said permits must be secured before carrying out any activities on the buildings and also comply and understand the aspects needed:
PBG: Ensuring the legal status of buildings, ensuring that the organization of buildings is up to the applicable standards, and maintaining records of building plans. PBG is needed for the following purposes: Construction of new buildings, Renovations of buildings, Expansions or reductions of sizes of buildings, Maintenance of buildings
SLF: Ensuring that buildings are safe for utilization, ensuring that buildings are up to the applicable standards, and maintaining records of the physical existence of buildings. SLF is needed for the following purposes: Renovation of existing buildings, Right of use and stipulation of use prior to usage
SBKBG: Ensuring the ownership statuses of buildings, ensuring that buildings are legal and comply with the relevant technical standards, and maintaining records of building ownership. SBKBG is needed for proof of property/building ownership.
However, in terms of PBG specifically, Law 28/2002 mandates that said permits should be secured by building owners prior to the commencement of the construction of the relevant buildings. PBG may though be secured after certain technical requirements have been fulfilled. Moreover, the Ministry has also stipulated various functions that are ascribed to the Building Permits outlined above, as detailed below:
In terms of the validity periods of Building Permits, Regulation 16/2021 has determined the following:
PBG: Lifetime validity once issued
SLF: 20-year period for single and terraced residential houses. Five-year period for other buildings.
SBKBG: Will remain valid until data stipulated under the SBKBG partially or entirely no longer conforms with the actual status of the relevant building (due to transfers of rights, amendments, deletions, and so forth)
Failure or refusal to comply and secure the above-described Building Permits will result in the imposition of administrative sanctions, which may take any of the following forms:
- Written warning/reprimands.
- Restriction of construction activities.
- Temporary or permanent suspension of construction work.
- Suspension and/or revocation of PBG.
- Building demolition order.
Building Permits and SBKBG applications must be submitted in a complete form through the SIMBG system, the system can be accessed through the simbg.pu.go.id website. Currently, it is only available in Bahasa Indonesia. We do recommend that you seek advice on the process, but below is an outline of the main steps.
A. SIMBG Account Registrations
Prior to gaining access to the Building Permits and SBKBG application, applicants are first required to complete account registrations. The account registration process breaks down as follows:
- Registration of the account through the simbg.pu.go.id website.
- Fill out the account registration form.
- Applicants should then select “Applicants for PBG/SLF/SBKBG/RTB/Building Records” from the applicant status tab and should then input an active email address along with a password for the SIMBG account.
- Upon completion of successful account registrations, Applicants should receive an email confirming the account.
- Applicants need to confirm the activation through the received email. And can then log in to apply for the various permits.
- Applicants will subsequently be directed to fill out their Login Information.
B. Submission of PBG Applications
Once the above SIMBG account registration process has been completed, applicants may continue to submit a Building Permit. In terms of securing PBG, the application process comprises several phases, as detailed below:
After login, applicants will then be directed to select which types of applications they wish to submit. If for PBG then these are the following steps.
Select the type of PBG application.
Applicants will then be directed to select the type of PBG application that they wish to submit. They are divided into the following types of buildings. Note that renovations and supportive buildings/facilities are subject to a PBG application.
PBG Application Type:
- New building: For buildings about to be constructed.
- Renovation of buildings: For buildings about to do renovations.
- Collective buildings: For several buildings like a villa or housing complex.
- Supporting buildings: For buildings being of a supportive nature.
- Cultural heritage buildings.
- Micro gas stations: Gas stations with fuel storage capacity of 3kl.
- Gradual buildings: For buildings that are to be constructed gradually.
Once you have chosen the type of building for the PBG, you need to then Select the function of buildings. These are the options for usage.
- Residential: Building used for residential purposes.
- Religious affairs: Worship activities.
- Business: For commercial and business activities.
- Special purpose: Buildings for various special purposes.
- Mixed purpose: For buildings having multiple functions.
You are then required to fill out technical data related to the building, including:
- Name of the building.
- Area of the building location.
- Number of stories in the building.
- Height of building.
- Area and/or number of stories in the building’s basement, if any.
- Design of the relevant technical documents.
It's important to note that in terms of the data outlined in point (6) above specifically, the SIMBG provides several options for the technical document designer, which should be selected by applicants, including:
- Services provided by construction service providers.
- Utilization of prototype design.
- Prototype design under development.
- Based on the design of earthquake-proof requirements.
You will then be directed to fill out the following personal data:
- Status of building ownership (government, business entities, or individuals).
- Identification of the building owner.
- Address and origin (i.e. province, city/regency, districts, and sub-districts of the building owner).
- Phone number.
- Email address.
It should be noted that in terms of the data outlined in point (2) above specifically, the SIMBG provides several options for data for the identification of building owners. Options include:
- For individual owners: full name and identity card (Kartu Tanda Penduduk – “KTP”) number.
- For business entity owners: Name of the company and business identification number (Nomor Induk Berusaha/NIB).
You will then be directed to fill out data relating to the location of building, including:
- Province.
- City/regency.
- District.
- Sub-district.
- Full address of the building.
Following this, you need to fill out data of the same nature as those that were previously submitted during the technical building data submission process. But, instead of providing data on designers, etc., this phase involves the filling of information on parties that provide the above-described technical documents for the building.
Continued further, you will then be directed to upload scans of the relevant land documents together with the following related data:
- Type of land ownership document.
- Number and date of issuance of the land ownership document.
- Area of land.
- Status of land ownership.
- Name of the land owner.
- Address of the land.
- Permits for the utilization of the land in the case of a lease agreement (Relevant if the land owner and building owner are not the same person).
You will then be directed to upload other supporting documents for verification purposes. These documents include:
- KTP or Temporary Stay Permit Cards (Kartu Izin Tinggal Sementara - “KITAS”).
- City Planning or Confirmation of Spatial Utilization Activities (KKPR).
- Relevant environmental documents or permits (e.g. Environmental Impact Analyses such as AMDAL and Environmental Management Efforts and Environmental Monitoring Efforts known as UKL-UP).
- Other data such as construction service providers and architects.
Uploading of Relevant Technical Data:
You will then be directed to upload structural relevant drawings and technical calculations and technical architectural relevant drawings and technical specifications data for the planned building. The available selections above are detailed in the description below as to what you need to submit.
- Plan drawings and calculations of the building’s technical electrical grid.
- Sources of electricity, the relevant power grid, and lighting.
- Plan drawings and calculations of the building’s sanitation system.
- Water and waste management plan.
Filling out the Application Confirmation Statement:
As the final phase of the PBG application process, applicants will then be directed to read and understand the confirmation disclaimer and statement that applies whenever submitting an application for a PBG via the SIMBG. Details of the above disclaimers and confirmation statement break down as follows:
Disclaimer:
- All submitted data is correct, and applicants may be held accountable.
- Applicants should fulfill all data requirements by uploading them via the SIMBG.
- All documents must be fully uploaded within 20 days of a given PBG application process commencing.
- Any errors that are discovered in submitted data after this confirmation phase may be amended after being returned by the relevant regional technical department.
Statement:
- All submitted data and uploaded documents are correct.
- All submitted data comply with relevant laws and regulations.
- In the event that any discrepancies are discovered in submitted data, then the applicant is willing to accept any legal consequences in accordance with the relevant laws and regulations.
You will then subsequently be required to tick a number of checklist boxes that confirm the following statements of the PBG applications:
- The KRK/KKPR have been completed.
- Construction contractors have been used.
- Certified construction supervisor/managers have been used.
- Relevant land is not currently the subject of any legal or other dispute.
- Relevant buildings have fulfilled earthquake-proofing requirements.
C. Submission of SLF Applications:
Generally, the submission process of SLF applications through the SIMBG system is similar in process to the PBG application process, as listed in points above. However, during phase 3 of the above-described PBG application process, applicants should select the “Application for SLF” option and follow through with required data and documents.
- Religious-Harmony Letter (Surat Kerukunan Umat Beragama/SKUB) for any building that will be used for a religious affairs function specifically: Valid SLF if secured in the past.
- PBG along with proof of retribution payment: Data on construction, architect, and other certified experts.
- Drawings of the current state of the building: Site plan.
- Blueprint of the building: Drawings and primary details of the building.
- Technical specifications that have already been built.
- Structural Building Data Required to Be Uploaded During SLF Applications: Technical calculations and drawings of the building’s foundations and other components.
- Drawings of any detailed structures.
- Relevant technical specifications (e.g. general and special specifications).
- Existing Building Data Required to Be Uploaded During SLF Applications: Report on the building’s functional feasibility examination.
- As-built drawings of the building.
- Detailed drawings of built structures.
- Periodic building examination report.
- Technical calculation and technical plan documents during the building’s construction.
- Data on the relevant certified technical examiner.
D. Submission of SBKBG Applications:
As with the above-described SLF application process, the submission of SBKBG applications through the SIMBG involves a similar process to the previously elaborated PBG application process. However, during phase 3 of the above-mentioned PBG application process, applicants should select the “Application for SBKBG” option.
In addition, the various documents and data that are required to be uploaded in relation to SBKBG applications differ from those that are required for PBG and SLF applications. The following subsection sets out details of the various types of data and information that are required to be uploaded during the SBKBG application process:
- Drawings of controlled land borders (including existing buildings in areas that are about to be built on).
- Drawings and information on the results of land investigations for simple buildings.
- General Data Required to Be Uploaded During SBKBG Applications:
- Information on KTP/KITAS.
- Agreements between landowners and building owners (if the owners are different parties).
- Environmental Documents.
- Information on KRK.
- SIPPT.
- Data on any utilized construction service providers and licensed architects.
In terms of any buildings that are required to be classified as Green Buildings (Bangunan Gedung Hijau/BGH) specifically, the following additional documents should also be uploaded:
- Building management plan.
- Energy efficiency documents.
- Water utilization efficiency documents.
- Indoor air-quality documents.
- Environmentally friendly material utilization documents.
- Garbage and water-waste management documents.
Architectural Building Data Required to Be Uploaded During SBKBG Applications:
- Drawings of the current building’s situation.
- Blueprint of the building (denah).
- Site plan (rencana tapak).
- Visible drawings and primary details of the building.
- Technical specifications of any structures that have already been built (e.g. general and special specifications).
Structural Building Data Required to Be Uploaded During SBKBG Applications:
- Technical calculations and drawings of the building’s foundations and other components.
- Drawings of any detailed structures.
- Relevant technical specifications (e.g. general and special specifications).
- Existing Building Data Required to Be Uploaded During SLF Applications: Technical calculations and drawings of the building’s sanitation system plan.
- Calculations of noise and vibration levels (including any detailed drawings).
- Technical calculations and drawings of a detailed plan for a lightning protection system.
- Technical calculations and drawings of detailed plans for regular or evacuation-purposed sound systems.
- Technical calculations and drawings of a detailed plan for security systems and access controls.
- Technical specifications for any utilized mechanical, electrical, and plumbing components.
- Technical calculations and drawings of any in-building, detailed transportation systems (in vertical and/or horizontal mode) plan.
- Drawings of a technical electrical network plan.
- Technical calculations and drawings of a detailed plan of any internal and external communication systems, as well as information-technology data systems.
- Technical calculation and drawings of a detailed plan of any automated building systems.
- Technical calculations and drawings of detailed plans for building maintenance unit (gondola) systems.
- Technical calculations and detailed drawings of the building’s plumbing and sanitation systems.
- Technical calculations and detailed drawings of the building’s fire protection systems (Sistem Proteksi Kebakaran/SPK) that have been adjusted to match the relevant building’s level of fire risk.
In accordance with the Regulation 16/2021, the applicable PBG retribution tariffs should be determined by the relevant city/regency-level governments via its technical departments based on the integrated index for retribution unit prices. In this regard, the Integrated Index should be determined based on the relevant building’s function and classification.
While unfortunately, Law 28/2002 and Regulation 16/2021 provide no further elaboration concerning how PBG retribution tariffs should be determined, the Directorate-General of Fiscal Balance at the Ministry of Finance previously issued a set of guidelines that specifically address the area of PBG retribution and that are currently serving as a reference for use by regional governments in relation to the establishment of their own dedicated PBG retribution frameworks.
Under said Retribution Guidelines, several calculation formulas relating to the PBG retribution have been established, as follows:
- Retribution Tariffs for Buildings
- Retribution Tariffs for Building facilities
However, one of the challenges involved in the PBG application process concerns the fact that not every region across the country has established its own regional regulations that stipulate the above-described PBG retribution tariffs. In fact, as of January 2023, it was reported that only 87 cities/regencies out of a total of 508 cities/regencies across the nation had already issued their own PBG retribution tariff frameworks. Regulation 16/2021 mandates that regional governments should have established the above-mentioned PBG retribution tariff frameworks within six months of the enforcement of Regulation 16/2021, i.e. by 2 March 2022.
However, given the overall lack of PBG retribution tariff frameworks that were ultimately established by this deadline, through the issuance of Joint Circular of the Minister of Home Affairs, Minister of Finance, Minister of Public Works and Public Housing and Minister of Investment No. 973/1030/SJ, SE-1/MK.07/2022, 06/SE/M/2022, 399/A.1/2022, regional governments are permitted to utilize the previously determined IMB tariffs for PBG retributions up until 5 January 2024, provided that said governments are offering PBG-related services in accordance with Regulation 16/2021.
A few takeaways from this are as follows:
The various processes above are very specific and technical, and it’s important to be in compliance as the government is actively seeking ways of how they may be able to monitor easier. The penalties from this are substantial and not something you want to experience nor push on to an end buyer if you’re a developer.
At Seven Stones, we have a full team providing this service, and we invite you to reach out at any time for a meeting or chat to discuss your specific needs.
