Nov

03

IMB (Ijin Mendirikan Bangunan) Changed to PBG (Persetujuan Bangunan Gedung)

Law No. 11 of 2020 regarding Job Creation (Law 11 2020) was enacted a year ago and it revised many existing regulations and introduced plenty of new ones. One of the revised issues was regarding building permits. Previously you had to acquire a Building Permit or Izin Mendirikan Bangunan (IMB) to build. However, it has now been changed into Building Approval or Persetujuan Bangunan Gedung (PBG). The concept is implemented through Government Regulations No. 16 of 2021 Regarding Implementation Regulation of Law Number 28 of 2002 regarding Building (GR 16 2021), which revoked Government Regulation 36 of 2005 Regarding Implementation Regulation of Law Number 28 of 2002 Regarding Building (GR 36 2005).

According to Article 1 GR 36, 2005, IMB is defined as permission provided by the Regency/City Government to building owners to build new, change, expand, reduce, and/or take care of the building by administrative requirements and technical requirements applicable. According to Article 1 GR 16 2021, PBG is defined as permission granted to building owners to build new, change, expand, reduce, and/or take care of the building according to technical building standards.

A key difference between the two is that PBG emphasizes the technical building standards regarding how a building must be built while IMB emphasizes the permission that must be obtained before building. PBG does not require the building owner to apply for a permit before constructing the building, as was the case with the previous IMB regulations.

However, the building owner must still report the function of the building and adjust it to the spatial layout of the place where they want to build the building.

To obtain IMB and PBG, the owner must also convey the function of the building, for example, for residential, religious, business, social or cultural purposes, to special functions. The difference is that the government provides mixed-function options for PBG.

The next difference is that the IMB provides several building requirements, such as an acknowledgment of the status of land rights, a utilization permit from the rights holder and the status of building ownership to a building permit. Then, there are also technical requirements in the form of building layout and building reliability. Meanwhile, PBG only requires planning and building design according to building layout, reliability and the design of prototypes.

An example of this difference is that Article 253 paragraph 5 GR 16 2021 states that PBG is composed of 2 stages, which are:
  1. planning consultation; and
  2. issuance
Where the planning consultation consists of:
  1. registration;
  2. inspection of compliance with Technical Standards; and
  3. statement of compliance with Technical Standards.
The planning consultation is free of charge and the registration is done using Building Information Management System or Sistem Informasi Manajemen Bangunan Gedung (SIMBG) where you must submit:
  1. data for the Applicant or Owner;
  2. building data; and
  3. a technical plan document.
If everything is in order, a consultation schedule will be issued through the SIMBG.

Whereas the previous provision was regulated in Article 15 GR 36 2005, which states that everyone that applies for IMB must submit:
  1. proof of land rights ownership status or proof of land use agreement as referred;
  2. building owner data;
  3. building technical plan; and
  4. the results of the analysis of the environmental impact for buildings that have an impact on the environment.

Although there were technical requirements that must be fulfilled, it was not emphasized and implemented as much as in the current one and, instead, the more administrative requirements, such as land right status, are simply placed somewhere else in the process in a different certificate, such as the Building Ownership Certificate or Surat Kepemilikan Bangunan Gedung (SKBG)

The many transitions that arise from Law 11 2020 can feel unfamiliar, even though they are there to accommodate and allow you to do business more easily, and you might be lost if you enter the marketplace without a guide to accompany you. We at Schinder Law Firm have years of experience helping foreign investors start and continue trading activities in Indonesia. If you need help or consultation, please contact us via info@schinderlawfirm.com.

Let Us Be Your Guide.
Our thorough understanding of local culture
ensures that your business will be in compliance
with all laws and regulations and receive
a warm welcome in the community.

Dear valued Visitor,

Data is a valuable currency in this new world. In the midst of digital transformation, the Indonesian government has taken the final decision to pass the Pelindungan Data Pribadi (PDP) Bill by September 2022. The PDP Law applies to all businesses established in Indonesia and puts the consumer in control. The task of complying with this regulation falls upon businesses.

The PDP Law affects a variety of business operations, including how your sales team prospect and how marketing initiatives are managed. Businesses have had to reassess their business procedures, applications, and forms. Additionally, all businesses that work with personal data should designate a Data Protection Officer (DPO) or data controller to oversee PDP compliance.

In line with this spirit, it gives us great pleasure to announce and share with all our esteemed clients and business associates that Schinder Law Firm is prepared to assist your company to understand the impacts of the Personal Data Protection Law (PDPL) and take the required measures to comply with the law. Our Privacy, Data Protection, and Cybersecurity practice group is a pioneer in providing data privacy law services in Indonesia. Personal data protection services include but are not limited to:

  • Assessing the existing systems, processes, and controls, etc.
  • Providing provide gap assessment on the existing systems, processes, and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDP Law
  • Developing policies, best practices, and procedures
  • Advising on the security of personal data and managing data breaches
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role, and responsibilities of a data protection officer
  • Advising on cross-border transfers of personal data
  • Carrying out data protection impact assessments and data protection audits
  • Recommending other necessary corrective actions in order to comply with the PDP Law
  • Training on the PDP Law tailored to clients’ businesses

We look forward to many more opportunities in the year ahead with your continued support and trust. For consultation, please send us a WhatsApp or Email.

Warmest regards,
Naz Schinder
Managing Partner

Keep Up with the New Law in Indonesia: Personal Data Protection

  • Assessing the existing systems, processes and controls, etc.
  • Providing provide gap assessment on the existing systems, processes and controls, etc.
  • Developing and ensuring contracts and agreements comply with the PDPL.
  • Developing policies, best practices and procedures.
  • Advising on security of personal data and managing data breaches.
  • Acting as the Data Protection Officer (DPO) and advising upon the appointment, role and responsibilities of a data protection officer.
  • Advising on cross-border transfers of personal data.
  • Carrying out data protection impact assessments and data protection audits.
  • Recommending other necessary corrective actions in order to comply with the PDPL.
  • Training on the PDPL tailored to clients’ businesses.
Privacy, Data Protection and Cyber Security
We help our clients to understand the impact of the Personal Data Protection Law (PDPL) on their companies and take the required measures to comply with the law.
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