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The Essential Guide to PBG and SLF Compliance

The landscape for property ownership and villa rentals in Bali has officially entered a new era of strict digital governance. Moving into 2026, the Indonesian government has shifted from a period of transition to one of rigorous enforcement. Under the newly implemented Government Regulation (PP) No. 28 of 2025, the previous manual and often fragmented licensing processes have been consolidated into a mandatory, centralized digital pipeline. For villa owners and developers, "business as usual" is no longer an option.

If you own an existing property or are planning a new project, understanding the following five pillars of the new regulation is critical to protecting your investment.

1. The March 2026 "Verified" Deadline

The most immediate threat to rental income is the March 31, 2026, Verification Deadline. The government has mandated that all properties listed on Online Travel Agencies (OTAs) like Airbnb, Booking com, and Expedia must achieve "Verified" status.

To be verified, your NIB (Business Identification Number) must be digitally linked to a valid PBG and SLF. Failure to meet this requirement carries a high risk of your property being de-listed from these platforms, effectively cutting off your primary source of guests.

2. Understanding the Duo: PBG & SLF

The old IMB (Building Permit) is a thing of the past. The current legal framework splits the building lifecycle into two distinct stages:

  • PBG (Persetujuan Bangunan Gedung): This is the permit required before any construction begins. It ensures your blueprints meet structural safety standards and align with specific zoning laws.

  • SLF (Sertifikat Laik Fungsi): This is the "Certificate of Occupancy" issued after construction is complete. It certifies that the building was built according to the PBG and is safe for human use. Legally, you cannot rent out a villa without an active SLF.

3. Precision Zoning via KKPR and RDTR

Gone are the days of "flexible" zoning. The OSS (Online Single Submission) system now uses high-precision digital mapping to match land coordinates with the RDTR (Detailed Spatial Planning).

  • Pink Zone (Tourism): The only zone where commercial villa businesses are fully supported.

  • Yellow Zone (Residential): Typically limited to private homes or "Pondok Wisata" (homestays with a maximum of 5 rooms).

  • Green Zone (Agricultural): Strictly protected. The digital system will automatically reject any permit applications in these areas.

4. The 5-Year Compliance Cycle

A major change that catches many owners off guard is the expiration of the SLF. While a PBG stays with the building, the SLF for commercial properties (villas, hotels, and businesses) is only valid for 5 years. Owners must apply for a renewal every five years, which involves a fresh inspection to ensure the building is still structurally sound and safe for tourists. Residential homes, by contrast, have a 20-year validity.

5. Increased Enforcement and "Quality Tourism"

Bali’s shift toward "Quality Tourism" means that the Provincial Government has empowered field inspectors to be more proactive. Non-compliance is no longer met with a simple warning. Potential consequences include:

  • Operational Seals: Immediate closure of your villa to guests.

  • Administrative Fines: Substantial financial penalties that can wipe out a year's profit.

  • Demolition Orders: In extreme cases, particularly for structures built in Green Zones or violating coastal/cliff setbacks, the government can order the demolition of the property.


Navigating these complex changes in Bali's regulatory landscape can be overwhelming, but staying compliant is the only way to safeguard your investment and ensure long-term profitability. With the March 31, 2026 deadline approaching, there is no room for delay in securing your PBG and SLF. Don’t risk de-listing, heavy fines, or operational shutdowns—ensure your property is fully protected and legally verified today.

For expert guidance, technical assistance, or a comprehensive audit of your property’s legal status, please contact us now to speak with our specialized consulting team.

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