To check whether a finished villa in Bali is legal to own and rent, ask for four documents and verify each one at its source: the land certificate or notarised lease, the PBG building approval (or an IMB issued before 2021), the SLF certificate of function, and an NIB business licence under an accommodation KBLI code. Then check one detail most buyers miss: the building function written on the PBG and SLF must match how the villa is actually used. A villa rented to guests on a permit for a private house is not legal to rent.
We prepare PBG and SLF files for the villas we build and for villas that were built without them, so we see the same gaps again and again. This guide shows where each document is checked, the red flags, and what legalising a villa costs.
The four documents a legal rental villa needs
| Document | What it proves | Where to verify | Red flag |
|---|---|---|---|
| Land certificate (SHM or HGB) or notarised lease | The right to hold and build on this plot | Land office (BPN) through a notary check; lease deed at the notary | Names do not match; lease has fewer years left than you need; plot sits in a green zone |
| PBG — or an IMB issued before 2021 | The design was approved for this plot and this use | SIMBG, the national building permit portal | Still “in process”; villa larger than the approved drawings; function says private house while the villa is rented |
| SLF (Sertifikat Laik Fungsi) | The finished building matches the PBG and is safe to occupy | SIMBG, issued after a technical inspection | Missing, expired, or issued before an extension was built |
| NIB with an accommodation KBLI code | The rental business is registered | OSS, the online business licensing system | Wrong KBLI, villa address not listed as a business location, NIB held by someone unconnected to the villa |
Tax receipts complete the picture: the annual land and building tax (PBB) should be paid up, and a villa rented to guests should be registered with the regency for the accommodation tax. Missing receipts are not a deal-breaker, but they tell you how the villa has been run.
How to check the PBG in SIMBG
The PBG (Persetujuan Bangunan Gedung) replaced the IMB in 2021 and is issued by the regency through SIMBG, the national building permit portal. A genuine PBG has a registration number and a QR code. Check four things:
- Owner and address. The applicant and the plot must match the land certificate or lease. A PBG in a previous owner's name is common and fixable; a PBG for a different plot is not a PBG for this villa.
- Building function. The PBG states the function: residential dwelling, business, or mixed. A villa run as a holiday rental needs a function that covers accommodation use; if the permit says private house, a change-of-function PBG is required before the SLF and licence.
- Approved drawings. The attachments show the approved footprint, floors and pool. Walk the villa with them. Added bedrooms, a rooftop or a pool that is not in the drawings means the villa is larger than its permit.
- Dates. A villa completed after 2021 should have a PBG. An IMB is valid for buildings approved before the switch, but not for later extensions.
If the villa has no PBG at all, see how the PBG permit for a villa is prepared — for an existing building the file is based on as-built drawings.
How to check the SLF
The SLF (Sertifikat Laik Fungsi) is issued through SIMBG after a licensed assessor inspects the finished building: structure, electrical safety and grounding, water supply, wastewater and fire safety. It proves the villa matches its PBG and is fit to occupy. When you check it, look at:
- Validity. For villas run as a business the SLF is valid for five years and must be renewed after a fresh inspection; owner-occupied homes get longer validity.
- What it covers. An SLF issued before an extension was built does not cover the extension. The building on the plot has to match the building on the certificate.
- Function. Same rule as the PBG — the function must match the use.
A missing SLF is the most common gap we find in villas for sale. It is usually fixable, and it is a legitimate reason to negotiate the price: legalising after purchase is the buyer's cost. Our SLF certificate service covers the audit, fixes and lodgement.
How to check the NIB and the rental licence in OSS
The NIB (Nomor Induk Berusaha) is the business registration issued through OSS, Indonesia's risk-based licensing system. The NIB printout lists the licensed activities as KBLI codes and the business locations. For a villa rented to guests:
- The KBLI must be an accommodation code — usually villa (55193) for a company, or pondok wisata (55130) for a small homestay run by an Indonesian owner. A foreign-owned PT normally operates under the villa code.
- The villa's address must be a listed business location, not just the company's office.
- The holder must be connected to the villa — the owner, the leaseholder's PT, or a management company with a written agreement.
- Accommodation is a higher-risk activity in OSS, so beyond the NIB the operator usually needs a verified standard certificate; ask for it together with the NIB.
Red flags when buying or renting a finished villa
- The seller says the PBG is “in process” and cannot show a SIMBG registration number.
- The villa was finished after 2021 but the only permit is an IMB dated after the switch to PBG.
- The approved drawings show two bedrooms and no pool; the villa has four bedrooms, a pool and a rooftop.
- The PBG and SLF list the building as a private dwelling (rumah tinggal) while it is listed on booking platforms.
- There is no SLF, or it expired — for villas run as a business it has to be renewed every five years.
- The NIB belongs to a management company or a person who does not hold the lease or certificate.
- The lease does not explicitly allow building, renting to guests and subletting.
- The plot is in a green agricultural zone or inside a river, coastal or cliff setback — these cannot be fixed with paperwork.
Can an unpermitted villa be legalised? Cost and time
If the plot is in a zone that allows a villa and the building sits outside the setbacks, yes. The order is fixed:
- As-built drawings and a structural assessment of the villa as it stands.
- Fixes where the building breaks technical rules — grounding, guardrails, septic, fire safety, sometimes structural strengthening.
- A PBG for the existing building, including a change of function if it will be rented.
- SLF inspection and certificate.
- NIB and the accommodation licence in OSS.
What it costs with us: the zoning check is USD 200–450 per plot; PBG preparation and lodgement USD 900–2,500 plus the government retribution calculated in SIMBG; a standalone SLF USD 700–1,800 plus any remedial works, quoted as a fixed figure after the walk-through. Administrative fines for building without a permit are set by the regency and are on top. A clean legalisation takes roughly two to four months; one that needs structural work takes as long as the works.
What cannot be fixed with paperwork: a villa in a green agricultural zone, inside a river, coastal or cliff setback, or built over the boundary. In those cases the report tells you to walk away — or to price the villa as a structure that may never be legal to rent.
How we check a villa for you
Documents review — 2 to 3 working days
You forward what the seller or landlord has: certificate or lease, PBG or IMB, SLF, NIB printout, tax receipts. We list what is missing and what does not match.
Source checks
PBG and SLF against SIMBG, the business licence against OSS, the land through a notary check, the zone and building ratios against the official spatial data.
Site visit or video walk-through
An engineer compares the villa with the approved drawings — floors, footprint, pool, extra pavilions — and notes structural and safety issues an SLF inspector would raise.
Written report with a legalisation estimate
Go, no-go or fixable: what needs a PBG amendment, what the SLF inspection will ask for, and a fixed quote for the work.
For villas we build ourselves the chain runs the other way: zoning check, PBG, construction, SLF — all inside one turnkey contract, handed over with the documents in your name.