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Do you know why you need IMB in Bali property? If you ask some agency or property management to market your villa, they will ask you if you have IMB.
An IMB is essentially the building permit or “permit to establish a building”. It also serves as a registration document for the building, also specifies the building usage purpose. Basically, IMB permit defines specification of building that it is or finished property for and usage purpose of the building.
An IMB can take more than 3 months to obtain and costs approximately Rp 5 million.
IMBs are very important, as it is an approval from the government to build a building. The IMB is the responsibility of the owner of the building. If you are the owner then it will be your responsibility. If you rent or lease a building, it is your landlord’s responsibility.
However, do not buy or lease a building that does not have an IMB in Bali property or you may have future issues. If you lease a building that has an IMB and wish to use it for a different purpose than the current IMB statement, then you must change the IMB. If a villa will be renting out as holiday accommodation than private residence, you also probably need to be careful.
Obtaining an IMB is really a part of the town planning process. Permits are issued by the Dinas Cipta Karya or Dinas Tata Ruang Kota dan Pemukiman, which means the Department of Town Planning and Settlements. With the IMB certificate comes a metal plate rather like a car number plate at the front of the building.
To get an IMB it is necessary to submit a pile of documents that will include the following:
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Type of property ownership dedicated for local investors or foreigners under legal cooperation in Indonesia. The freeholder of a property owns it outright, including the land it is built on. If you buy freehold, you’re responsible for maintaining your property and land, so you’ll need to budget for these costs and taxes.
Surat Hak Milik (SHM) / Surat Hak Guna Bangunan (SHGB)
Lifetime, or until it’s sold to a new owner
Indonesian individual only or foreigner who has a company in Indonesia (PMA) to buy the property under that company’s name
Type of property ownership for foreign investors who are willing to purchase the property as an individual. With leasehold, you own the property (subject to the terms of the leasehold) for the length of your lease agreement with the freeholder. When the lease ends, ownership returns to the freeholder, unless the contract states guaranteed lease extension at future market price.
Akta Sewa / Right to use – Right to rent
Average 20-30 years, with possible extension. Maximum 99 years
All people including Indonesian and foreigner with KITAS-Visa status
