A Building Construction Permit, commonly known as IMB (Izin Mendirikan Bangunan), is a crucial legal document that must be obtained before constructing a building. It serves as an essential complement to property ownership legality, alongside documents such as the Freehold Title (SHM – Sertifikat Hak Milik).
Although the term IMB has officially been replaced by PBG (Building Approval / Persetujuan Bangunan Gedung), its role and legal importance remain the same. This permit confirms that a building is legally recognized by law. Without it, a property may face administrative sanctions, fines, or even demolition by the authorities.
For this reason, it is vital to understand the definition, functions, and application requirements of a Building Permit. To avoid costly mistakes, explore the complete explanation in this article.
What Is a Building Construction Permit (IMB)?
A Building Construction Permit (IMB) is an official authorization issued by the central or local government that allows a property owner to construct a new building or make modifications—such as renovations, expansions, reductions, or maintenance—according to approved technical standards.
The IMB serves as legal proof that a building has been developed based on approved functions and technical plans. Its primary purpose is to ensure building safety and proper land use.
Prospective homebuyers—whether purchasing new properties from developers or second-hand houses—should always verify that a building has an IMB. Properties without an IMB may incur fines of up to 10% of the building’s value and, in severe cases, face demolition.
From a legal standpoint, IMB regulations are governed by national laws on buildings and further detailed in regional regulations. Under Law No. 11 of 2020, the IMB system has been officially replaced by Building Approval (PBG) as part of regulatory improvements.
Functions and Benefits of a Building Construction Permit
Below are the key functions and benefits of owning a Building Construction Permit (IMB):
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Legal protection: Provides legal certainty and protects land and buildings from disputes, offering peace of mind to owners and surrounding communities.
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Ensures building safety: Buildings with an IMB meet technical standards and are safer for occupancy and use.
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Increases property value: Properties with clear legal status typically have higher market value.
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Required for buying, selling, and leasing: IMB is a mandatory document for official property transactions.
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Supports business licensing: Required to obtain further permits such as business location or operational licenses.
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Can be used as collateral: Properties with an IMB are eligible as collateral for bank loans or financing.
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Facilitates ownership status changes: Required for converting property rights, such as from Building Use Rights (HGB) to Freehold Title (SHM).
Requirements and How to Apply for a Building Permit (IMB)
To ensure that construction or renovation is legally compliant, the IMB application process must be carefully prepared from the start. Below are the requirements and procedures you need to know.
IMB Application Requirements
IMB requirements consist of administrative documents and technical documents that complement each other.
Administrative Requirements
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Completed and stamped IMB application form for residential buildings (Form 1A).
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Copy of land ownership proof, along with a statement confirming the land is not under dispute.
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Copy of applicant’s e-KTP; for companies, include the deed of establishment.
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Proof of payment for Land and Building Tax (PBB).
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Land-use agreement letter if the land is not owned by the applicant.
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Application form legalized by the local village and district offices.
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Soil investigation data, if required.
Technical Requirements
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Architectural drawings, including floor plans and building details.
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Structural drawings, such as foundations, roofing, sanitation, and site plans.
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Technical recommendation for Land Use Permit (IPPL).
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Structural calculations prepared by certified professionals, especially for multi-story buildings, structures exceeding two floors, or spans over 10 meters.
IMB Processing Fees
In addition to understanding the application process, knowing the estimated cost of obtaining an IMB or PBG is equally important. Since permits are issued by local governments, fees may vary by region.
Under Law No. 34 of 2001, local governments are not always required to impose retribution fees, but charges may still apply depending on regional policies.
The IMB application process typically takes 2–3 weeks, depending on document completeness and local regulations. The permit can also be updated if there are building changes, such as room additions or changes in building function.
IMB Fee Calculation Formula
In general, IMB fees can be calculated using the following formula:
Fee = Building Area × Rate per m² × Coefficient × 1%
Example:
A 60 m² house in Jakarta:
60 × IDR 100,000 × 1 × 1% = IDR 60,000
Please note that this calculation is only an estimate. Official fees are determined through the Building Management Information System (SIMBG), which adjusts rates and coefficients based on location, building type, and complexity. The SIMBG calculation remains the official legal reference.
Examples of Building Construction Permits (IMB)
Building Construction Permits can be presented in various formats, depending on the building data and documentation required. Each format serves a different purpose. Below are common IMB examples for reference:
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Simple Building Permit Format
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Building Permit with Detailed Property Information
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Neighbor Consent Letter for Building Construction
That concludes the complete explanation of the Building Construction Permit (IMB)—from its functions to application requirements—that you should understand before starting construction or renovation. With the proper permit in place, development projects can proceed in a more orderly, safe, and legally compliant manner.
Careful planning from the outset will help streamline the permit application process. To support construction needs and unexpected financial requirements along the way, you may also consider financing solutions from BFI Finance, using motorcycle ownership documents, car ownership documents, or house/shop certificates as collateral.
All financing services from BFI Finance are licensed and supervised by the Financial Services Authority (OJK), ensuring a secure and reliable process. With thorough permit planning and the right financial support, your construction journey can run more smoothly—because there is always a way with BFI Finance.
