What are the Sanctions for Buildings Without PBG and SLF in Indonesia?

In the property sector, having a well-constructed building alone is not enough. Building owners must also ensure that all required permits and legal documents are complete, especially the Building Approval (PBG) and Function Worthiness Certificate (SLF). These two documents became essential requirements following the implementation of the Job Creation Law and Government Regulation No. 16 of 2021.

So, what happens if a building does not have a PBG or SLF? The risks extend beyond administrative penalties. In certain situations, building owners may also face financial losses and potential criminal liability if the building causes harm to other parties.

Legal Basis of PBG and SLF

The regulations regarding PBG and SLF refer to Law No. 28 of 2002 concerning Buildings, as amended by Law No. 11 of 2020 on Job Creation, as well as Government Regulation No. 16 of 2021 concerning the Implementation of Building Regulations.

Under these regulations, PBG replaces the former Building Permit (IMB). A PBG (Persetujuan Bangunan Gedung) must be obtained before construction begins. Meanwhile, the SLF serves as proof that a building has met technical standards and is safe and suitable for its designated function.

Administrative Sanctions for Buildings Without PBG and SLF

If a building lacks a PBG and/or an SLF, local governments have the authority to impose administrative sanctions. Based on Government Regulation No. 16 of 2021, these sanctions may include:

• Written warnings
• Temporary suspension of construction or building operations
• Permanent suspension of building utilization
• Suspension or revocation of the PBG
• Orders for building demolition
• Administrative fines in accordance with local government regulations

The amount of administrative fines may vary depending on regional policies and the severity of the violation.

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Risk of Criminal Sanctions

In addition to administrative penalties, violations of building regulations may also result in criminal sanctions. This generally applies when a building fails to meet safety standards and causes losses, accidents, injuries, or harm to other parties.

Under the Building Law, criminal sanctions may be imposed if negligence or violations related to building requirements result in property damage, permanent disability, or even death.

The penalties may include:

• Imprisonment of up to 3 years or a fine of up to 10% of the building’s value if the violation causes property damage to others.
• Imprisonment of up to 4 years or a fine of up to 15% of the building’s value if the violation causes permanent disability.
• Imprisonment of up to 5 years or a fine of up to 20% of the building’s value if the violation results in death.

Therefore, PBG and SLF are not merely administrative requirements, but also important aspects of building safety and the legal responsibility of building owners.

Risks for Building Owners

Beyond legal sanctions, buildings without PBG and SLF may also face several practical and financial challenges, such as:

• Temporary suspension of building operations
• Difficulties in property transactions or business partnerships
• Obstacles in applying for bank financing
• Potential sealing or closure by local authorities
• Buildings are being considered non-compliant or illegal

Tips to Avoid PBG and SLF Sanctions

To minimize legal risks and financial losses, building owners should consider the following steps:

1. Obtain a PBG before starting construction through the SIMBG system.
2. Ensure that construction follows the approved plans and technical documents.
3. Apply for the SLF before the building is occupied or operated.
4. Conduct regular inspections and maintenance to ensure the building remains compliant and functional.
5. Work with professional consultants to assist with licensing and technical inspections.

Conclusion

PBG and SLF are not merely administrative documents, but essential components of legal compliance and building safety standards. Buildings without PBG and SLF may face administrative sanctions, operational suspension, fines, and even criminal liability if they cause losses or endanger others.

For this reason, building owners and property business operators should ensure that all permits and certifications are properly completed before a building is used. Proper documentation helps ensure safer operations, legal certainty, and protection from potential future losses.

Need assistance with PBG and SLF processing? Consult your needs with Pandara Prima today!