Land & Building Permits

Land acquisition and building development in Indonesia involves navigating complex property rights structures that differ fundamentally from Western freehold systems.

Foreign entities cannot own land under Hak Milik (freehold title)—your options are Hak Guna Bangunan (HGB, building rights for 30 years, renewable), Hak Pakai (right to use, typically 25 years), or long-term lease arrangements. Each structure affects your asset valuation, financing options, and exit strategy. HGB on state land provides stronger rights than HGB on private land, while HGB in industrial estates often comes with pre-established infrastructure and streamlined permitting.

Building permit (PBG) processing requires coordination across multiple agencies—local spatial planning authority (for zoning compliance), environmental agency (for UKL-UPL clearance), fire department (for safety compliance), and often utilities providers (for connection capacity). Your architectural plans must comply with Indonesian building codes (SNI standards) while meeting your operational requirements. International firms often need to partner with locally-licensed Indonesian engineers to certify structural calculations and MEP designs.

The SLF (Certificate of Building Worthiness) is often overlooked but critical: Without SLF, your building cannot legally operate, insurance coverage may be void, and you cannot obtain operational licenses. SLF requires third-party inspection of completed construction—if your as-built differs from approved plans, you face costly rectification or acceptance of limited operational certificates.

We've prevented millions in remediation costs by conducting pre-acquisition land due diligence that uncovered ownership disputes, zoning violations, and environmental contamination. Our integrated approach coordinates legal (land rights), technical (building engineering), and regulatory (permit processing) expertise to de-risk your property development from site selection through operational handover.