PBG and SLF are the two building permits every warehouse or factory in Indonesia needs. The PBG (Persetujuan Bangunan Gedung, or building approval) must be in place before construction starts. The SLF (Sertifikat Laik Fungsi, a certificate that the building is fit for use) must be issued before the building is used. Both come from the local government under PP 16/2021, and under PP 28/2025, in force since June 2025, business applicants start them in the OSS system, which passes the application to SIMBG. Below are the PBG SLF steps, documents, timelines and costs, plus the separate warehouse registration (TDG).
The short version:
PBG: approval to build, alter, extend, reduce or maintain a building, required before construction. It replaced the old IMB.
SLF: certificate that a finished building is fit for use, required before use. For warehouses and factories it is renewed every five years.
Process: a free technical consultation, an examination by a panel of experts, payment of a regional levy, then issuance.
Warehouse registration: most warehouse owners also need a Tanda Daftar Gudang (TDG), a trade registration that is separate from the building permits.
Leasing: a tenant relies on the landlord’s PBG and SLF.
What are PBG and SLF?
PBG and SLF are the building approval and the certificate of fitness for use that Indonesian law requires for buildings, including warehouses and factories. PP 16/2021 defines the PBG as the permit to build new, alter, extend, reduce and/or maintain a building in line with technical standards, and the SLF as the certificate stating that a building is fit for its function before it can be used.
The PBG replaced the IMB (Izin Mendirikan Bangunan) in 2021, though an earlier IMB remains valid until it expires (Article 346(2)). The PBG covers the design and the SLF the finished building, so neither substitutes for the other.
When does a warehouse need a building permit in Indonesia?
A warehouse needs a building permit in Indonesia, the PBG, before any new construction and before altering, extending or reducing an existing building. Article 253 of PP 16/2021 requires the owner to apply before construction begins.
That covers more than new sites. Changing a building’s function or classification requires a revised PBG (Article 11(2)), and alterations or extensions, such as a mezzanine or a larger loading area, fall within the PBG’s scope (Article 253(3)). Anything that changes the structure, floor area or function also needs the landlord’s consent, so check with the local office before work starts.
What are the PBG requirements?
The PBG requirements fall into three groups under Article 253(10) of PP 16/2021: applicant data, building data and the technical plans. For business applicants, the OSS guide also requires earlier approvals to be in place before verification.
Applicant and owner data: company identity, NIB and the authorised signatory.
Building data: location, function, floor area, number of floors and height.
Technical plans: architecture, structure, and mechanical, electrical and plumbing drawings and calculations, prepared by qualified professionals.
Land and location: proof of land control (for example a land certificate, or a written agreement with the landowner as PP 16/2021 allows) and a KKPR spatial approval. Our KKPR guide explains that step.
Environment: the environmental approval (persetujuan lingkungan) for the activity.
Under PP 28/2025 on risk-based licensing, KKPR, environmental approval, PBG and SLF together make up the basic requirements (persyaratan dasar) for a business.
How does the PBG process work?
The PBG process works in two stages: a technical consultation and then issuance. Applications are registered online through SIMBG, the building information system run by the Ministry of Public Works, which business applicants now reach through OSS.
Registration: upload the applicant data, building data and technical plans. The consultation is free.
Technical examination: for buildings other than small houses, a panel of experts (TPA) reviews the plans. PP 16/2021 sets at most five sessions within 28 working days, with the first within three working days of registration.
Order of review: the architecture is checked first, followed by the structure and the mechanical, electrical and plumbing design.
Statement of compliance: once the plans meet the standards, the local office issues a statement with the calculation for the levy.
Levy and issuance: the applicant pays the PBG levy (retribusi), and the licensing office issues the PBG.
The levy varies by region. Under Law 1/2022 on regional finance, it is a regional licensing levy. Under the formula in PP 16/2021 and the Finance Ministry’s guidance, it multiplies the total floor area by a locality index and a standard unit building price set by the region, an integrated index for the building’s function and classification, and an index for the type of work. SIMBG has an online estimator, but the local regulation sets the final rate.
How do you get a certificate of occupancy in Indonesia?
A certificate of occupancy in Indonesia is the SLF, issued by the local technical office once a finished building has been checked against its approved plans. The construction supervisor or construction manager, or the owner, uploads an inspection checklist, a statement of fitness and the as-built drawings to SIMBG (Article 272).
PP 16/2021 then sets a short timeline. The first SLF is issued within three working days of the statement being uploaded, at no charge (Article 276). For warehouses, factories and other buildings that are not houses, the SLF is valid for five years (Article 297).
Renewal is easy to miss. It requires a fresh inspection by an independent technical assessor (pengkaji teknis), paid for by the owner or user. If the SLF lapses, Article 302 provides that municipal utility services are withdrawn until a new SLF is issued.
What if an existing warehouse has no PBG or SLF?
An existing warehouse without a PBG can still be regularised, but the SLF comes first. Under Articles 346(3) and 286 of PP 16/2021, the owner of a building already standing without a PBG must apply for an SLF to obtain one, and the PBG and SLF are then issued together after the levy is paid.
A technical assessor first inspects the building as it stands, and works may be needed before the SLF is granted. PP 28/2025 (Article 123) adds a route for business buildings that stood without an IMB or PBG before it took effect: the owner can apply directly for an SLF, without a PBG, when applying for or renewing its business licence in OSS. Ask the local office which route it applies.
Is a warehouse permit different from PBG?
Yes. A warehouse permit in Indonesia usually means the Tanda Daftar Gudang (TDG), a trade registration for the warehouse itself, not a building permit. Under PP 29/2021 on trade, as amended by PP 3/2026, every warehouse owner must hold a TDG, which is issued through OSS.
Classes: closed warehouses of 100–1,000 m² (Class A), over 1,000–2,500 m² (Class B) and over 2,500 m² (Class C), silos and tanks (Class D), and open warehouses of at least 1,000 m².
Exemptions: bonded storage, storage under customs supervision, and warehouses attached to a retail business or a production site (Article 69).
Stock records: the warehouse operator (pengelola gudang) must record the type and quantity of goods stored, coming in and going out, and show the records to trade inspectors on request (Articles 64–65).
A warehousing business also needs the right KBLI code. In KBLI 2025, general warehousing moved from 52101 to 52109, according to OSS.
Do factories in industrial estates need their own PBG and SLF?
Yes. A factory or warehouse built inside an industrial estate still needs its own PBG and SLF. We found no exemption in PP 16/2021 or PP 28/2025 for industrial tenants who build.
Estates do simplify other steps. Under PP 20/2024, tenants prepare a detailed environmental management plan (RKL-RPL rinci) approved by the estate company instead of their own full environmental study, and the estate must facilitate one-stop licensing services (Article 61(3)). Our guide to industrial park permits covers the estate side.
What happens without a PBG or SLF?
Building without a PBG or using a building without an SLF leads to administrative sanctions under Article 327 of PP 16/2021. These range from written warnings and limits on construction or use to stopping construction or use and freezing or revoking the PBG or SLF. Elsewhere, PP 16/2021 (Article 12) and the Building Law also allow a demolition order, for example where a building’s use does not match its PBG.
Criminal penalties apply only in serious cases. Under the Building Law as amended by Law 6/2023, a non-compliance that causes loss of other people’s property, an accident leaving someone permanently disabled, or a death can lead to up to 3, 4 or 5 years in prison or a fine of up to 10%, 15% or 20% of the building’s value (for a death, both apply).
What should you check before buying or leasing a warehouse?
Before buying or leasing a warehouse, check that its PBG (or old IMB) and SLF exist, match the building as it stands and are still valid. Requests on the Yardzeal client requirements page show both sides of the question: as of 26 October 2026, 11 of the 77 active requests are for land of 5,000 m² to 66 hectares, where a PBG comes before any construction, while 44 are warehouse or factory leases that depend on the landlord’s permits.
Match the documents to the building: floor area, number of floors and function should match the PBG or IMB.
Check the SLF date: five years from issue for warehouses and factories.
Look for unpermitted extensions: mezzanines, canopies and added bays can be gaps.
Confirm the TDG position: who registers the warehouse, and whether an exemption applies.
Put it in the contract: our warehouse lease agreement guide explains the clauses, and our land due diligence guide covers the title checks.
FAQ
Can you apply for PBG and SLF yourself?
The application can be filed by the owner through OSS and SIMBG, but the technical plans must be prepared by qualified professionals, and an SLF renewal needs an inspection by an independent technical assessor. Many companies use a consultant for the technical work and file the application themselves.
Can you apply for a PBG without owning the land?
You need proof of land control, not necessarily ownership. PP 16/2021 allows building on another party’s land under a written agreement with the landowner, alongside the KKPR. The OSS flow may still expect the building to be registered as the applicant’s own, so check what your local office accepts before filing.
How much does a PBG cost for a warehouse?
The PBG levy depends on the region, the floor area and the building’s function and complexity, so there is no national price. SIMBG’s online estimator gives a first figure. SLFs, including renewals, are issued free, though the owner or user pays for the technical inspection needed to renew.
Is an SLF valid forever?
No. An SLF for a warehouse, factory or any building other than a house is valid for five years and must be renewed after an inspection by a technical assessor.
Does an old IMB still count?
Yes. An IMB issued before PP 16/2021 stays valid until it expires. Any later alteration or extension needs a PBG, and the building still needs a valid SLF to be used.
Who needs the TDG when a warehouse is leased?
The obligation in PP 29/2021 sits with the warehouse owner. In a lease, agree in writing who registers the warehouse (the owner’s duty) and who keeps the stock records (the operator’s duty), especially when the tenant operates it day to day.
Getting PBG and SLF right from the start
PBG and SLF are easiest when planned with the building, and an existing warehouse is only as usable as its SLF. Checking the permits alongside the building specifications and lease terms avoids delays after signing. To see what warehouse, factory and land requirements occupiers are posting, visit Yardzeal.