4 Reasons Why Bingin is the Next Property Hotspot in Bali

The PBG and SLF permit define the design and specification of the authorized building. They also grant permission for the building's intended usage. If a building does not comply with the registered permit, or even worse doesn’t have one, it is most likely that the building will be demolished by force, just like what happened in Uluwatu despite its near-finished construction.

The purpose of building permits is to carefully evaluate building designs to ensure they are properly planned and constructed in accordance with government regulations. This process will result in safer, hazard-resistant structures with proper electrical and wastewater systems, all while minimizing environmental impact.

So, what are the building permits in Bali? Let’s find out.

IMB (Izin Mendirikan Bangunan)/Building Permit

IMB is the name of building permits in Indonesia, until its update and replacement by PBG/SLF in 2021. As a result, IMB permits are no longer issued. However, if you already possess an IMB for a villa, this building permit remains valid and recognized by the government as long as your building stands.

PBG (Persetujuan Bangunan Gedung)/Building Approval

PBG or Persetujuan Bangunan Gedung, or Building Approval, in accordance with the latest policy of Peraturan Pemerintah No. 16 Tahun 2021 Tentang Bangunan Gedung. With this permit in place, you have the legal rights to construct an entirely new building, undertake renovations, or maintain your registered building according to the permitted technical requirements.

This permit only needs to be created once and will be valid as long as the building ages. If you happen to make any changes or modifications to the building, you only need to notify the Public Works Department for an amendment to the permit and get their approval.

An important note to keep in mind is that you should apply for the PBG certificate before commencing your construction.

SLF (Sertifikat Laik Fungsi Bangunan Gedung)/Certificate of Occupancy

This is another certificate that is a must-have besides PBG, and it serves as proof that your building is built by the applicable standards including safety, environment, culture, etc. You get this certificate after the PBG.

If your building is a residential one, the SLF certificate must be renewed every 20 years, and other than residential it must be 5 years.

SBKBG (Surat Bukti Kepemilikan Bangunan Gedung)/Certificate of Building Ownership

SBKBG is a proof certificate of rights to the ownership status of the building. You process and get this document along with the SLF. It is important to note that this certificate is different from land certificates (Hak Milik, HGB, etc.), as those only state the ownership of the land.

RTB (Rencana Teknis Pembongkaran Bangunan Gedung)/Technical Plan for Building Demolition

RTB is a document containing the results of identification of the built condition of the Building and its environment, demolition methodology, demolition risk mitigation, demolition technical plan drawings, and demolition implementation schedule.

You only need this permit if you plan to demolish your villa or any kind of building on top of the land.

This is quite a challenge for Bali, which naturally is a small island with an even smaller part of the desirable area, with Badung regency taking the lion’s share of it. Concerns were raised. Susi Johnston for example has made a very popular fan page entitled How Much is Too Much just to raise awareness of this seemingly uncontrollable development of hotels and the practices of the developers (so similar to each other as if on cue) of giving a little or no regards toward the environmental issue.

To make matters worse in a point, by prohibiting tall buildings, the local wisdom or kearifan lokal seems to promote the acquisition of massive size of the land plot. This is a setback no one expected, not even the late great Ida Bagus Mantra himself, the wisest governor Bali ever saw, who first codified it in order to respect the sacredness of Pura. This is a loop often utilized and exploited by irresponsible parties to reap profits.

Yes, we all want to make a profit, but surely not at the expense of the island and its future well-being. The solution for all of this is to go back to common sense. The massive sprawl of luxury hotels in every kilometer is not common sense.

However, despite the massive land takeovers conducted by hotel shareholders and developers, the sale and rent of private property e.g. villa and house–or land upon which they will be built–still dominate the property market in Bali.

“How much land do I need for my Bali home?” This question is an important matter in the long run because it’s based on modesty, common sense and it definitely shows responsibility on your part. Like anything else, buying something just because you can, only serves nothing else but inflates your ego. And this is not something Bali could survive from. Paraphrasing Gandhi: “Bali has enough for everyone’s need, but not for everyone’s greed.

Meanwhile, real estate prices keep increasing. As varied as it may– depends on the location–the price is still going one way: up. This could serve as a buffer, to slow down the rates of land conversion from agricultural to residential. However, it creates another problem. Everyone wants their fair share of that cake: a promise of quick money, instant wealth and God knows what else.

Just to follow my curiosity, I compared the price of property in Bali with those in major cities in the world.
In this case I picked New York, Upper East Side; France, Paris, Île-de-France; Italy, Milan and Australia, Sydney.
I know, I know. Others will argue that this comparison is cheeky (place randomly picked, unbalanced etc), but since it serves no other purpose than to fulfill my curiosity and not by any means a thorough comparative study, hold your horses, everyone!

Addressing The Problem
Opinions torn in two sides. Those who’ve spent decades in Bali missed the old days (go back in time or maintain status quo), while those who came later, are trying their best to keep up (to develop it further). At this point, everywhere it turns, Bali stares at immediate danger. It is as if impending doom awaits in every corner: economic imbalance, environmental issues, safety and traffic-related ‘disasters’ etc. However,  it's a consequence one should expect from a place that relies heavily on tourism. It's the honey, money, and poison all at once.

The challenge would be to harness all those demands into something constructive and beneficial to the island and to its people. This is the chance to give back to the island, to its culture, to its gods in equal manners, especially considering how this place benefits us, body and soul. There’s no other way. This counts for the locals too, Balinese in particular and Indonesians in general, as they’re part of the interconnected links that both sustain and live off Bali.

Principles-based on local wisdom, common sense and mutual respect should be reinforced. The local government, who many believe is the biggest part of the problem, should keep transparency above all else in every deal concerning these matters.

Only then we will see the Bali we all love is assured of its future. Only then the question I use as the title of this piece will have a decent answer, the same answer people I mentioned earlier would’ve said: “Why not?”