How to Secure a Construction Permit Before Applying for IUI in Indonesia

A PBG (Persetujuan Bangunan Gedung) or Building Approval is a mandatory construction permit in Indonesia. Introduced under Government Regulation No. 16 of 2021, the PBG ensures that your building plans meet all legal, technical, and safety standards before construction begins. 

Securing a PBG is the first legal step if you plan to operate an industrial business in Indonesia. It confirms that your facility is structurally and legally compliant. After obtaining a PBG, you can apply for an Industrial Business License (IUI). Without this license, your IUI application cannot proceed. 

How PBG Supports Your IUI Approval 

Before getting an Industrial Business License (IUI) in Indonesia, you must secure a PBG (Building Approval). Here’s why it matters: 

• Legal Requirement: Without a PBG, the Ministry of Industry won’t accept your IUI application. 
• Proof of Building Readiness: A PBG shows your building is safe, properly designed, and ready for industrial use. 
• Faster IUI Processing: A PBG avoids delays and speeds up the licensing process. 
• Meets Industrial Standards: Your building must meet specific zoning and construction rules before being used for industrial purposes. 

In short, getting your PBG is the first step toward operating a legal industrial business in Indonesia.

Who Needs to Apply for a PBG? 

If you plan to build or renovate a property for business or industrial use in Indonesia, you likely need a PBG. Here’s who it applies to: 

• New Industrial Buildings: Any new construction for manufacturing, logistics, or other industrial activities must have a valid PBG. 
• Renovated or Expanded Facilities: If you modify or expand an existing building for business purposes, you need a new PBG. 
• Commercial Property Owners: Developers or business owners setting up commercial or mixed-use buildings. 
• Factory and Warehouse Operators: All industrial buildings, including factories and warehouses, need a construction permit that matches their intended function. 
• Buildings with High-Risk Activities: If your operations involve machinery, chemicals, or large-scale processes, a PBG is mandatory to ensure safety compliance. 

Step-by-Step Guide to Getting a PBG for IUI 

Applying for a PBG (Building Approval) involves several critical stages. Here’s how the process generally works: 

• Collect the required documents, such as land certificates, architectural drawings, and proof of business registration. 
• Apply online through the OSS platform or the regional permit authority. 
• Undergo technical evaluation by local authorities, who will review zoning, building safety, and usage compliance. 
• Await PBG issuance, which is granted once all requirements are met and approved. 

Once you have your PBG, you can legally continue to apply for your Industrial Business License (IUI).

Why SLF Is Required After PBG for IUI Approval 

You’re not done yet after obtaining your PBG (Building Approval). To fully validate that your building is ready for use, you’ll also need an SLF (Sertifikat Laik Fungsi)—a Certificate of Building Worthiness. Here’s why the SLF is crucial before your Industrial Business License (IUI) is approved: 

• Confirms the Building is Safe to Use: The SLF verifies that the construction has been completed according to the approved plans in the PBG and meets functional safety standards. 
• Required for Operational Approval: You can’t legally operate your business or get full IUI approval without an SLF. 
• Needed for Utility Connections: In many regions, electricity, water, and fire safety services require an SLF before connection or activation. 
• Prevents Future Legal Issues: Operating without an SLF can result in penalties, forced shutdowns, or delays in renewing business permits.

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Secure Your PBG and IUI the Smart Way with InCorp 

Obtaining a PBG (Building Construction Permit) is the first step to securing your Industrial Business License (IUI) in Indonesia. Without this permit, your business operations cannot proceed. 

InCorp Indonesia (an Ascentium Company) is here to assist you with obtaining these licenses. Here’s why partnering with us is a wise decision: 

• Save Time: Avoid delays from missing documents or rejected applications. 
• Stay Compliant: Ensure your PBG and SLF meet all regulatory requirements. 
• Expert Support: Get professional guidance through each stage of the process. 
• End-to-End Assistance: We handle everything from document preparation to IUI approval. 

Fill out the form below and let experts handle your PBG and IUI approval—fast, accurate, and hassle-free. 

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