Villa 2BR in Bingin
Pecatu · 2 bedrooms
Rp 4.535.061.916
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Developing Villas in Bali: the Permit Sequence from Land and KKPR to PBG, SLF and the Licence
The order of approvals for a Bali villa project, from the company and the land to the zoning confirmation (KKPR), the building permit (PBG), the certificate of fitness (SLF) and the business licence to let, and what each depends on.
Published 25 October 2026 · Updated 25 October 2026 · Rules checked 25 October 2026 · 5 min read
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The sequence at a glance
The steps can overlap in time, but not in dependency. A PBG applied for on land whose zoning has not been confirmed, or a villa let before its SLF, carries a risk that falls on whoever holds it next.
| Step | What it is | Rests on | Rule |
|---|---|---|---|
| 1. The company | A PT PMA for a foreign developer, with the right KBLI codes | Capital and investment plan | BKPM Regulation 5/2025; PP 28/2025 on licensing |
| 2. The land | HGB in the company’s name, or a lease deed that allows building | Title checked by a PPAT | Law 5/1960; PP 18/2021 |
| 3. KKPR | Confirmation that the planned use fits the spatial plan | The RDTR, or the RTRW where there is none | PP 21/2021 |
| 4. PBG | Approval of the building design, through SIMBG | The KKPR and the design | PP 16/2021 |
| 5. Construction | Built to the approved drawings | The PBG | PP 16/2021 |
| 6. SLF | Certificate that the finished building is fit for use | An inspection against the PBG | PP 16/2021 |
| 7. Business licence | NIB with KBLI 55193 for a villa let nightly, and local tax registration | PBG, SLF and the company | PP 28/2025 |
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The company and the land
A foreigner cannot hold Hak Milik, so a foreign developer holds land as HGB through a PT PMA, or builds on land leased from an Indonesian owner. HGB runs 30 + 20 + 30 years under PP 18/2021. A lease is a notarial contract, and for a development it has to allow building, sub-leasing or assigning to buyers, and say who owns the buildings at the end.
BKPM Regulation 5/2025, in force since 2 October 2025, cut a PT PMA’s paid-up capital to IDR 2.5 billion per business line, but the investment plan behind each line must still exceed IDR 10 billion, excluding land and buildings. A company that will build and let villas needs the KBLI codes for both activities.
KKPR: zoning in writing
PP 21/2021, on spatial planning, made the KKPR (Kesesuaian Kegiatan Pemanfaatan Ruang) the basis for using land for a business. It is issued as a confirmation where the regency’s RDTR is digitised in OSS, or as an approval from the spatial planning office where it is not; a third form, a recommendation, covers specific national cases. For a villa project in Bali it is usually one of the first two.
Green belt and protected farmland (LP2B) cannot carry a villa, coastal and river setbacks apply on top of the zone, and since Bali’s Perda 4/2026 converting productive farmland for tourism accommodation is under provincial control. A development budget built before the KKPR is a budget for a project that may not be permitted.
PBG and SLF
The PBG (Persetujuan Bangunan Gedung) replaced the IMB under PP 16/2021. It is applied for through SIMBG with the design drawings, checked against the KKPR and technical standards, and it approves the design, not the finished building.
When construction is done, an inspection compares what stands with the approved drawings, and an SLF (Sertifikat Laik Fungsi) is issued if they match. PP 16/2021 requires the SLF before the building is used, and a villa needs it for its business licence. Build to the drawings, or amend the PBG before building something else.
The licence to let
Nightly letting is an accommodation business. It needs an NIB issued through OSS with the villa classification, KBLI 55193, held by a PT PMA for a foreign owner, the PBG and SLF, and registration for the regency’s PBJT hotel tax, capped at 10%. The Ministry of Tourism began delisting unlicensed accommodation from online platforms from 1 August 2026, and an OSS link to the platforms is targeted for 1 June 2027.
A project marketed with a rental return should say which licence each villa is designed to obtain, and through which company.
Selling while you build
PP 12/2021 lets a developer market and take payments before the PPJB, but a binding PPJB needs clear title, an issued PBG, infrastructure in place and 20% construction, and no more than 80% of the price may be collected before then. Buyers who have read the rules ask for the KKPR, the PBG number and the land title before they pay.
Developers who list on Baliestate can show permit status, tenure, lease years and payment milestones on each unit, read daily from their own website, which answers those questions before a buyer has to ask.
Common questions
What permits do you need to build villas in Bali?
A KKPR confirming the use fits the spatial plan (PP 21/2021), a PBG approving the design and, once built, an SLF certifying the building fit for use (PP 16/2021). To let the villas nightly, an NIB with KBLI 55193 through OSS, held by a PT PMA for a foreign owner.
What is the difference between KKPR and PBG?
The KKPR confirms that the planned activity is allowed on the plot under the spatial plan. The PBG approves the building design. The PBG is checked against the KKPR, so the KKPR comes first.
Can a foreigner develop villas in Bali?
Through a PT PMA, holding HGB or leasing the land, with the KBLI codes for construction and letting. Since BKPM Regulation 5/2025 the paid-up capital is IDR 2.5 billion per business line, with an investment plan above IDR 10 billion excluding land and buildings.
Looking for a home in Bali?
Tell the Baliestate assistant your budget and dates. It replies in minutes with homes that fit and books the viewings.
Rules checked 25 October 2026 against the regulations linked; PP 28/2025 replaced PP 5/2021 on risk-based licensing. Licensing dates are as the licence-deadline guide reports them. Perda 4/2026 is described from press and law-firm reporting, as the moratorium guide explains. General information, not legal advice: confirm a project’s permits with a licensed consultant or notary.
Sources and further reading
- PP 21/2021 on spatial planning, the KKPR (JDIH BPK)
- PP 16/2021 on buildings, PBG and SLF (JDIH BPK)
- PP 28/2025 on risk-based business licensing (JDIH BPK)
- PP 18/2021 on land rights, HGB terms (JDIH BPK)
- PP 12/2021 on housing, the PPJB conditions (JDIH BPK)
- OSS, the national business licensing system
- SIMBG, the national building-permit system
- GISTARU, ATR/BPN’s spatial-plan map
- For developers: list your projects
Related guides
- Building permits in Bali: PBG, SLF and what replaced the IMB
- Zoning in Bali: green belt, residential and why it decides everything
- Is Villa Building Banned in Bali in 2026? Farmland Only
- PT PMA Minimum Capital Drops to IDR 2.5 Billion
- After 31 March 2026: Bali’s Short-Term Rental Licence Deadlines (NIB, PBG, SLF) for Property Managers
- Land Deals for Bali Villa Developers: Ground Leases, Landowner Partnerships and What to Check