On 2 November 2020, President Joko Widodo promulgated the Law No. 11 of 2020 on Job Creation (“Job Creation Law“) which took effect on the same day. Several implementing regulations of Job Creation Law were issued by the Government, including Government Regulation No. 16 of 2021 on the Implementing Regulation of Law No. 28 of 2002 on Building (“GR No. 16/2021“), which has superseded the Government Regulation No. 36 of 2005 on Implementation Regulation of the Building Law. GR 16/2021 regulates various provisions, among others, the building approval. This article will focus on the building approval only.

Since the Job Creation Law, building construction permit (Izin Mendirikan Bangunan “IMB“) has been replaced with building approval (Persetujuan Bangunan Gedung “PBG“). Under the Article 1 number 17 of GR No. 16/2021, PBG is a license granted to building owner to build new, change, expand, reduce, and/or maintain building in accordance with the technical standards of building.

A PBG is a “new” term which the owner of the building must obtain before the construction or alteration of a building begins. Nevertheless, IMB issued prior to the enactment of GR 16/2021 remain valid until it expires. Based on the definition, there is no substantial difference between PBG and IMB. However, there are differences in the use of words related to the reference used in granting permission. For IMB, permission is granted if it complies with the administrative requirements and technical requirements applicable. Meanwhile, PBG is given when it is in accordance with the technical standards of building.

Building Technical Standard

Job Creation Law stipulates that PBG can only be issued if the building technical standards determined by the Central Government or the relevant Local Government have been met. Those provisions on building technical standards include:

  1. the standards of planning and design of building;
  2. the standards of construction and supervision of building;
  3. the standards of utilization of building;
  4. the standards of demolition of building;
  5. the requirements apply to cultural heritage buildings (Bangunan Gedung Cagar Budaya or BGCB);
  6. the requirements apply to buildings for special functions (Bangunan Gedung Fungsi Khusus or BGFK);
  7. the requirements apply to green building (Bangunan Gedung Hijau or BGH);
  8. the requirements apply to state building (Bangunan Gedung Negara or BGN);
  9. the documents requirements; and
  10. the requirements apply to parties involved in the construction of a building.
Sources  Jurisprudence: Buildings Without Building Permit Sold to the Buyer

PBG Submission Procedure

The process of PBG issuance includes (i) consultation on the construction plan, and (ii) the issuance of the PBG. PBG can be obtained after the inspection and the approval on the construction plan documents. Here is a description of the procedure of PBG submission refers to the provisions on GR No.16/2021.

  1. Registration of Consultation on the Construction Plan
    The Owner of the Building or its proxy (“Applicant“), registers the PBG through the Building Management Information System (Sistem Informasi Manajemen Bangunan Gedung “SIMBG”) to be able to process the consultation on the construction plan. Documents that need to be included for the registration are:

    1. Applicant data;
    2. Building data; and
    3. Technical plan document.
  2. Planning Consultation Planning Consultation involves a group of building service providers, including a construction planning services provider (penyedia jasa perencana konstruksi), a construction services provider (penyedia jasa pelaksana konstruksi), and a supervision services provider (penyedia jasa pengawasan) or construction management services provider before commencing construction. The construction planner service provider will prepare a technical plan which will then be presented to the authorities through SIMBG for PBG application.
    1. Technical Standard Compliance Checks
      Experts or technical expert who has been appointed by the local government will check whether the documents submitted by the Applicant have met the Technical Standards or not.13 The expert or technical personnel consists of 2 (two) groups depending on the area of the building, namely:

      1. Technical Assessment Team (Tim Penilai Teknis “TPT“) which conducts an examination of the technical plan documents for Building Buildings in the form of single residential houses 1 (one) floor with an area of at least 72m2 (seventy-two square meters) and single dwelling house 2 (two) floors with a floor area of at most 90m2 (ninety square meters); or
      2. Expert Assessment Team (Tim Penilai Ahli “TPA“), which conducts inspections of The Technical Plan Document for Buildings other than buildings examined by the TPT above.
        If the authorized party to examine has received the PBG application, then that party will assess:
        – Architectural plan documents; and
        – Structure, mechanical, electrical and plumbing plan documents.
    2. Statement of Compliance of Technical Standards
      If the document fulfills all technical requirements, the relevant Technical Agency (Dinas Teknis) in charge of building affairs in the area will issue a recommendation for the issuance of a written statement of compliance with the technical requirements. The recommendation will also determine the mandatory costs to be paid by PBG applicant that will be the basis for issuing PBG.
  3. PBG Issuance
    The authority to provide PBG is the Investment Office of One-Door Integrated Services (Dinas Penanaman Modal Pelayanan Terpadu Satu Pintu “DPMPTSPT”) districts / cities or provinces. The process of PBG issuance includes:

    1. Determination of the value of regional levy;
    2. Payment of regional levy; and
    3. PBG Issuance
      DPMPTSP will issue a PBG if it has received proof of retribution payment by the applicant. Issued PBG consists of PBG documents and PBG attachments.
Sources  Exemption of Land and Building Tax Located in Village and Urban Area for House, Simple Lease Condominium, Simple Ownership Condominium with Tax Object Sales Value up to One Billion Rupiah

Post-Issuance of PBG

If PBG has been issued and the Applicant has given the date of construction to the Technical Agency through SIMBG, then construction can be started. If the applicant does not provide a date, then the Technical Agency will ask for clarification of the date of commencement of construction. Then, if the applicant still has not provided a date, PBG will be revoked and declared invalid.

Then, during the building construction, Technical Agency through a designated supervisor (pemilik), will conduct development supervision to ensure that it is in line with PBG.

In connection with the construction of several buildings in one area under the same technical plan, GR No. 16/2021 requires for one service provider to build them. Subsequently, that building must be owned by one person/legal entity when the PBG application is submitted and the collective PBG will be issued.

The Change of PBG

If there is any revision to certain things related to the building, then the PBG must be revised. Things related to the building include:

  1. the function of the building;
  2. the number of floors of the building;
  3. the area of the building;
  4. the appearance of the building;
  5. the specifications and dimensions of the building’s components which affect the safety or health aspects of the building;
  6. the retrofitting of a building against moderate or heavy damage levels;
  7. the protection or development of a cultural heritage building; or
  8. the repair of a building located in a cultural heritage area with minor, moderate or severe damage.

For the maintenance or maintenance of the building, no amendment is required to the PBG.

Adhika Patria