For any foreigner considering buying property in Bali, navigating Indonesia’s legal framework can be one of the most intimidating steps. Between shifting regulations, new acronyms, and evolving permits, it's essential to understand the basics before you invest.

This guide breaks down the core legal property terms you’ll encounter: IMB, PBG, and Hak Pakai—and what each means for your rights as a buyer.

IMB (Izin Mendirikan Bangunan) – Building Permit (Phased Out)

The IMB was the traditional building permit in Indonesia, issued to approve the purpose, design, and layout of a structure on a parcel of land.

• Function: It confirmed a building’s legal use (residential, commercial, etc.)
• Requirement: Necessary for utility connections, taxation, and property transactions
• Status: As of 2021, it has been replaced by the PBG in most regions

If you’re buying an older property, it may still have an IMB. It remains valid but should be accompanied by a building certificate.

PBG (Persetujuan Bangunan Gedung) – Building Approval (Current Standard)

The PBG is the modern version of the IMB. It aligns with national building regulations and applies to new builds or major renovations.

• Function: Authorizes building structure, function, design, and safety standards
• Application: Submitted through the OSS (Online Single Submission) system
• Importance: A legal must-have for buyers of new developments or those planning to build

Without a PBG, you may face issues with bank financing, resale, or registering utilities.

Hak Pakai – Right to Use (For Foreigners)

Hak Pakai is the only individual property right legally available to foreign nationals in Indonesia, provided certain conditions are met.

• Eligibility: Foreigners with a valid KITAS or KITAP (temporary or permanent stay permit)
• Scope: Allows use of land for residential purposes for up to 80 years (30+20+30)
• Registration: Must be registered with the land office and under the buyer’s name—not a nominee

Hak Pakai can be applied to both state land and converted Hak Milik (freehold) land, as long as the land is zoned for residential use.

Why These Titles Matter

These documents are not just red tape—they protect your investment.

• IMB/PBG: Validate the legality of the structure
• Hak Pakai: Legalizes your right to occupy and use the land
• Together: They enable taxation compliance, secure resale, legal renting, and peace of mind

Final Reflection

Understanding Bali’s property documentation is essential to buying well—and buying safely. These aren’t just technicalities; they’re legal cornerstones of your future home or investment.

At IndoVillas, we guide every client through the legal process with clarity and precision—ensuring your purchase is both elegant and fully compliant.

For property listings with clean legal status, visit IndoVillas.