Hak Guna Usaha (HGU), or the Right to Cultivate

Hak Guna Usaha (HGU) is the right to work on land which is directly controlled by the Indonesian state. HGU is granted for a period up to a maximum of 35 years and may be extended for a maximum period of 25 years.

HGU is granted on lands that are larger than five hectares and can be granted to Indonesian citizens and corporate bodies in Indonesia (the latter includes foreign investment companies).

Hak Guna Bangunan (HGB), or the Right to Build

Hak Guna Bangunan (HGB) is the right to construct buildings on land that is not owned by the person or entity constructing such buildings. HGB is granted for an initial period of 30 years and may be extended for another 20 years and may be renewed for another 30 years based on the decision of the related government agency.

HGB, just like Hak Guna Usaha (HGU), is granted to Indonesian citizens and corporate bodies (including foreign investment companies) in Indonesia.

Hak Pakai, or Right to Use

Hak Pakai is the right to use and/or to collect products from lands controlled by a third party (this can be either the Indonesian state or an individual). It is a weaker right than e.g. Hak Guna Bangunan. Also, Hak Pakai can be granted to Indonesian citizens and corporate bodies in Indonesia. Moreover, Hak Pakai can be granted to foreign individuals, based on article 39 Government Regulation 40 of 1996 on Hak Guna Usaha, Hak Guna Bangunan and Hak Pakai Atas Tanah (Government Regulation).

* Please note that the above-mentioned land rights have been re-regulated under article 22 of the Indonesian Law 20 of 2007 on Investment (Investment Law), which alters the grant, extension and renewal periods of the land rights. However Constitutional Court decision number 21-22/PUU-V-2007 has voided this article and refers to Government Regulation for matters regulated in article 22 Investment Law.

Discuss