The government has officially replaced Building Construction Permit (IMB) with a new permit called Building Approval (PBG). Anyone intending to build new buildings, change the structure of a building, and conduct maintenance on buildings are required to obtain this permit.

The substitution of IMB by PBG is regulated in Government Regulation (PP) number 16 of 2021. The 406-page regulation which is issued on 2 February 2021 is a derivative of the revision to Law number 28 of 2002 on Building through Law number 11 of 2020 on Job Creation.

Law and Human Rights Minister Yasonna Laoly hopes that the establishment of derivative regulations on the Job Creation Law can quickly restore the national economy which has been hit by the COVID-19 pandemic. He said the omnibus law product was a breakthrough and a way for the government to seize investment opportunities from abroad, one of which was through simplifying permits and cutting bureaucracy.

This can be seen in Article 11 which states that the PBG shall contain at least building functions and building classification. According to Article 4 Paragraph 2, there are five functions of a building, namely residential, religious, business, social and cultural, and special functions.

Meanwhile, Article 9 Paragraph 1 records that there are a series of classifications that will be applied to buildings owned by a person. The classification consists of the level of complexity (simple, not simple, and special), the level of permanence (permanent and non-permanent).

There are also related to the level of fire hazard risk (high, medium, low), location (dense, medium, and uncrowded) and the height of the building (skyscraper, high, medium, and low). Classification is also carried out on building ownership (state buildings and non-state buildings), and building class (there are 10 building classes).

Such information must be included in the PBG. Building owners can be subjected to sanctions as written in Article 12 if the information provided are not in accordance with the facts. Public Works and Housing Ministry’s publication entitled "Substance of the Government Regulation Draft on Buildings" states that the PBG can be issued within two days given the applicant has a statement of compliance with technical standards.

The presence of this PBG will apply the concept of norms, standards, procedures, and criteria (NSPK) from the central government. This concept is different from the IMB that was previously implemented. Unlike the IMB, which must be handled before the construction started, PBG allows construction to be carried out immediately given it meets the standards set by the government.

Apart from PBG, building owners will also need to have at least two other types of permits, one of which is Proof of Building Ownership (SBKBG). SBKBG will later have to include information on building functions and building classification such as Article 4 and Article 9.

Article 275 regulates the SBKBG which includes information regarding building ownership, building address, status of land rights, PBG number, and number of Certificate of Acceptability (SLF). An annex to SBKBG which includes a land use agreement letter, a deed of separation, a picture of the situation, and a fiduciary deed.

Another document is a SLF issued by the regional government to state the feasibility of a building's function before it can be used or occupied. According to Article 297, the SLF needs to be extended within 20 years for residential houses and five years for other buildings.

The applicant submits PBG, SLF and SBKBG through the Building Management Information System (SIMBG) website on the page www.simbg.pu.go.id. The permit will later be issued by the local government.

Meanwhile, Article 347 Paragraph 1 stipulates that building permits that have been obtained through the regional governments prior to the issuance of PP 16 of 2021 are still valid.

Furthermore, Paragraph 2 states that IMBs obtained from the regional government  before PP 16/2021 issuance remain valid until the expiry date of the permit. "Buildings that have been erected without PBG must apply for SLF based on the provisions of this government regulation," as quoted from Article 347 Paragraph 3.

Writer: Anton Setiawan
Editors: Ratna Nuraini/Elvira Inda Sari/Penny P. Rusman
Translator: Irvina Falah