The Persetujuan Bangunan Gedung (PBG) (Building Construction Approval) and Surat Laik Fungsi (SLF) (Certificate of Functionality) are two vital documents that businesses must have before opening. Business location permits are crucial as they determine the smooth operation and security of the business. In this article, we'll explain why both are very important, whether you're building a new location or renting one. But first, let's understand PBG and SLF definitions.

What are PBG and SLF?

The Persetujuan Bangunan Gedung (PBG) was formerly known as the Ijin Mendirikan Bangunan (IMB), or Building Permit. The PBG is a permit issued to building owners for constructing new buildings, as well as for altering, expanding, reducing, and/or maintaining existing buildings in accordance with applicable technical standards. Meanwhile, the Surat Laik Fungsi (SLF) is a certificate issued by the local government to declare a building's functional viability, both administratively and technically, before it can be used. In other words, the SLF is proof that the building is safe and suitable for its intended purpose (e.g., as a store, office, restaurant, etc.).

Why are SLF and PBG mandatory?

Possessing these two documents provides a legal and security foundation for your business. Here are the reasons why:

1. Compliance with laws and regulations

Legal basis governing the administration and legality of business premises:

Undang-Undang Nomor 28 Tahun 2002 tentang Bangunan Gedung

Mandates that every building must have an IMB (now PBG) and an SLF.

Peraturan Pemerintah Nomor 16 Tahun 2021 tentang Peraturan Pelaksanaan Undang-Undang Nomor 28 Tahun 2002 tentang Bangunan Gedung

This regulation details the procedures for issuing PBGs and SLFs, as well as the penalties for violators.

Without a PBG and an SLF, your business operates illegally in the eyes of the law. Other business permits, such as the Nomor Induk Berusaha (NIB) with a Klasifikasi Baku Lapangan Usaha Indonesia (KBLI), often require a valid SLF and PBG.

2. Safety and Security

PBG ensures your building is planned and constructed according to safe technical standards, including structure, electrical installations, fire prevention systems, and more. SLF confirms that the building has met functional worthiness standards after construction is complete. This is vital for protecting the safety of employees, customers, and your business assets.

3. Increased Property Value and Investor Trust

Buildings with complete business location permits have a higher sale or rental value. This becomes a plus for investors or business partners because it reduces basic liabilities and demonstrates your professionalism and compliance with regulations.

Are PBG and SLF still required if you rent a business location?

Yes, they are still required. As explained above, PBG and SLF are vital documents that must be held even when you rent a business location.

This responsibility usually falls to the building owner. However, as a tenant, you must verify the status of these permits before signing a lease agreement.

Risks of a Business Lacking PBG and SLF

Neglecting your PBG and SLF obligations can lead to the following consequences:

1. Legal Sanctions

According to Article 12, paragraph (2) of PP No. 16 of 2021, the government has the right to impose sanctions ranging from written warnings, large administrative fines, suspension of business licenses, to sealing and demolition of the building.

2. Safety and Disaster Risks

Without an SLF, you have no guarantee that the building is safe from fire, structural damage, or other security issues. If an incident occurs, you could be held legally liable for any resulting losses or injuries.

3. Difficulty in Business Development

Applying for a bank loan, getting insurance, or forming partnerships will be difficult if the building's legality is in question.

4. Poor Reputation

News of a sealed or problematic business location will spread, damaging your business's image and public trust. As we all know, it is difficult to rebuild a damaged reputation.

Given these risks, it's best to comply with all established regulations to avoid anything that could disrupt your business operations. However, as a business owner, you might feel overwhelmed with handling all the paperwork.

The process involves various documents, coordination with relevant agencies, and a deep understanding of applicable regulations. As a business owner, your time and energy should be fully dedicated to developing strategies, product innovation, marketing, and operations.

Solusi Ijin Semarang is ready to help by not only handling your PBG and SLF but also by providing the best permit solutions for your business. Established in 2018, we have been trusted by more than 400 companies in Semarang to handle all the necessary permits.

For more information on pricing and consultations, please contact us via our WhatsApp or visit Solusi Ijin Semarang Instagram