Home Blog Your Quick Guide to Building Permit (IMB) in Bali Bali | Business Licenses | Business Setup | Indonesia Your Quick Guide to Building Permit (IMB) in Bali InCorp Editorial Team 27 August 2019 4 minutes reading time Table of Contents What is an IMB? All Buildings in Bali are Required to Secure an IMB Town Planning and Land Zoning in Bali How to Secure an IMB in Bali How Cekindo Can Help If you are ready to start a business in Bali, you surely need to prepare yourself to get familiar with the property market, licenses, and permits required on the island. This includes knowing what IMB permit or building permit is in Bali, and why you need that. The use of a building permit in Bali is not complicated. The permit is used to construct buildings with designs and structures that are comfortable and safe by law. It also makes sure that the building is consistent with the allocations of land. This article will serve as your guide to building permits (IMB) in Bali. What is an IMB? IMB stands for Izin Mendirikan Bangunan. Also, as mentioned, IMB is a permit to establish a building. To be more exact, IMB is a building registration document and it tells you the purpose of a building. In other words, how a building can be used in accordance with the applicable law. IMB is most often used for residential and commercial purposes. In addition to the Land Certificate, IMB is the most important permit when it comes to properties in Bali. It is not only used for constructing the building at the beginning but is also utilized throughout the entire period of the building. All Buildings in Bali are Required to Secure an IMB In accordance with Indonesian law, all buildings in Bali must secure IMB building permit. It is the responsibility of the building’s owner to do that. As such, if you rent a building, it is your landlord’s responsibility to obtain an IMB. But, if you are the owner, then the responsibility will fall on you. You will face problems if you buy or rent a building without an IMB. In addition, a building that is used for a purpose that is different from what is stated on the IMB is illegal as well. Hence, you need to be extra careful to make sure the exact use matches the written purpose on IMB. Town Planning and Land Zoning in Bali Town planning and land zoning (also called spatial planning) are required in Bali throughout the entire island. A guideline is known as the Province Regional Spatial Plan, or Rencana Tata Ruang Wilayah Provinsi (RTRWP) shows how lands are required to be used in Bali. The goal of spatial planning is to create towns and cities that are livable. Under the master document RTRWP as mentioned earlier, lands are allocated for specific purposes only and the types of property built on the land are controlled. So, IMB comes into play, for sure, in spatial planning. The first stage of acquiring an IMB requires you to check the land zoning of the land. This is to ensure that under the town planning regulation, the purpose of land use is permitted in the particular zone. Don’t try to forgo the IMB process. What is more, you are encouraged to go through the IMB process with a professional. Failure to obtain an IMB will not only bring you serious legal complications, but will also threaten the safety and quality of living of the people in Bali. How to Secure an IMB in Bali If you are leasing or buying land or property in Bali, it is plain to see that IMB is extremely important as it is part of the spatial planning process. You should apply for your IMB at the Department of Town Planning and Settlements. Successful IMB comes with a metal plate that you need to put in the front part of your building. Documents that you need to secure an IMB in Bali are stated below: A land certificate Izin kavling Building drawings Correct land zoning Signed permission of neighboring properties’ owners Services and structural drawings How Cekindo Can Help Cekindo is a professional team with a mission to provide the best licensing and permit services for you in Bali. We have years of experience in assisting clients with licenses and permits applications. If you require further information on IMB in Bali, do not hesitate to contact us. Fill in the form below or visit us in our office in Badung. Read Full Bio Verified by David Susandi Branch Manager – Bali Office at InCorp Indonesia Holding 11 years of experience in various roles, including project manager, operational manager, and corporate strategist, David Susandi is a prominent figure for many entrepreneurial organizations expanding in Indonesia. Frequently Asked Questions How do investors choose a holding jurisdiction for a PMA firm in Indonesia? Investors considering investments in Indonesia should assess existing International Investment Agreements between Indonesia and other countries. Having a business presence in countries with such agreements may offer incentives like stronger investment protection and higher foreign shareholding in Indonesia. Can a foreigner become a director or commissioner of a company in Indonesia? Yes, in a foreign-owned (PT PMA) company, a foreigner can be a director or a commissioner Does a PMA company in Indonesia have to meet certain criteria before it can distribute dividends? Dividends can be distributed from company net profits after allocating reserves, depending on a positive profit balance. Approval from the general meeting of shareholders is necessary. Interim dividends may be distributed if specific requirements are met. Is having audited accounts mandatory? 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