Hak Guna Bangunan (HGB) is a land right that allows its holder to establish and own buildings on land it does not own under Hak Milik for a specified period. This right is temporary and does not renew automatically. If your PT PMA owns property, the HGB term and renewal process depend on the type of land you hold.
Most property owners check their HGB only when the expiry date is near. By then, unresolved compliance, land-use, or documentation issues can delay renewal. Address these issues early to keep your property secure and avoid setbacks.
This guide explains how long an HGB can last for a PT PMA, what conditions affect an extension or renewal, and how to plan the process early.
How Long Does HGB Last for a PT PMA?
Government Regulation No. 18 of 2021 on Management Rights, Land Rights, Condominium Units, and Land Registration sets out the terms and conditions applicable to HGB. Article 37 provides the relevant term structure, which depends on the type of land underlying the HGB.
| Land underneath the HGB | Term structure | How it continues |
| State land or HPL (management rights land) | 30 years, then a 20-year extension, then a 30-year renewal, up to 80 years in total | Extension and renewal applications to the land office (BPN) |
| Hak Milik (freehold) land | 30 years | A new grant deed between the landowner and the HGB holder for each further term |
For HGB over State Land or HPL, the statutory structure is 30 years, followed by an extension of up to 20 years and a renewal of up to 30 years. This is the basis for the commonly quoted total of up to 80 years, subject to the applicable requirements.
HGB over Hak Milik land is different. It is granted for up to 30 years and may be renewed through a new HGB grant deed between the HGB holder and the Hak Milik owner. The new right must then be registered with the land office.
What Is the Difference Between HGB Extension and Renewal?
Indonesian regulations clearly distinguish between perpanjangan (extension) and pembaruan (renewal) of HGB rights.
For an HGB extension, you may submit the application after you have used the land for its intended purpose or before the HGB term expires. For an HGB renewal, you can submit the application no later than two years after the HGB term expires.
Reviewing the HGB certificate and land structure early can help determine if the company should pursue an extension, prepare for a renewal, or consider another property strategy.
ILA Global Consulting can review your HGB status, identify the applicable continuation route, and coordinate the required process with the relevant land office.
What Conditions Apply to HGB Extension and Renewal?
HGB over State Land can be extended or renewed upon application by the HGB holder if the requirements are met. The main conditions include:
- The land continues to be properly used and managed in accordance with its condition, characteristics, and the purpose for which the HGB was granted.
- The holder has properly fulfilled the conditions attached to the granting of the HGB.
- The HGB holder continues to meet the requirements to hold the right.
- The land remains consistent with the applicable spatial plan.
- The land is not being used or planned for a public-interest purpose.
These conditions are reviewed during the application, so an HGB extension or renewal is not automatically a continuation of the existing right.
For a PT PMA, the company’s eligibility and the property’s current use are relevant alongside the HGB certificate.
| Plazo | Definición |
|---|---|
| Spatial Plan Rencana Tata Ruang |
A plan that determines the allocation, designation, and use of space within a particular area and provides the framework for controlling land use and development. |
What Documents Are Generally Required for HGB Extension or Renewal?
Required documents depend on the property, underlying land, and land office. Typically, you need the HGB certificate, application form, identification, PT PMA establishment and legal entity documents, current PBB documents, and proof of BPHTB and state revenue payments.
Additional documents may be required based on the certificate and property details. Always confirm the exact requirements for your HGB with the relevant land office before you apply.
ILA Global Consulting can review your HGB certificate, underlying land structure, and PT PMA documentation to determine the requirements. We coordinate with the relevant land office to help you move forward with greater clarity.
| Plazo | Definición |
|---|---|
| PBB Pajak Bumi dan Bangunan/Land and Building Tax |
A tax imposed on land and/or buildings in accordance with the applicable Indonesian tax framework. For property owners, evidence of PBB payment may be required in land-related administrative processes. |
| BPHTB Bea Perolehan Hak atas Tanah dan Bangunan |
A tax imposed on the acquisition of rights over land and/or buildings, including certain acquisitions or transfers of land rights, in accordance with applicable tax regulations. |
How to Plan Your HGB Extension or Renewal
Start by confirming the HGB expiry date and the type of land underlying the right. These determine the framework that applies to continuing the HGB.
Ensure your PT PMA remains compliant with all corporate and regulatory requirements, including timely tax payments and accurate reporting. Pay PBB on time and maintain organized, current supporting records.
If your HGB is on Hak Milik land, contact the landowner early to secure continuation of your rights. A new grant deed will be required for the next term, so early coordination is essential.
What Happens If You Miss the Deadline?
Missing the deadline for an HGB extension does not necessarily mean that you immediately lose the opportunity to continue the right. However, the process changes once the HGB has expired.
Under Government Regulation No. 18 of 2021, you must submit an application for an HGB extension no later than the expiry of the existing term. If the extension is not submitted by that date, the holder may instead apply for renewal of the HGB within two years after its expiry.
The consequences also depend on the land underlying the HGB:
- HGB over State Land: Once the HGB expires, the land becomes State Land. The holder can apply for renewal within the permitted period, but continuation remains subject to the applicable requirements and approval process.
- HGB over Hak Pengelolaan (HPL): The HGB ends, and the land returns to the HPL holder’s control. Renewal or extension requires meeting the relevant requirements and the HPL holder’s approval.
- HGB over Hak Milik: The HGB is granted for up to 30 years and can be renewed through a new HGB grant deed between the HGB holder and the Hak Milik owner. Once the HGB ends, the land returns to the Hak Milik holder.
Treat the HGB expiry date as a critical compliance milestone. Do not wait until the last minute. Early action helps you secure your rights and avoid costly delays.
Start Your HGB Extension or Renewal Early
Extending or renewing your HGB is straightforward if you act early. Delays, unclear land structure, or unresolved compliance issues with your PT PMA can complicate the process. Reviewing your HGB and company status in advance helps you spot and resolve issues before they disrupt your land rights.
ILA Global Consulting can review your HGB certificate and land history, assess the extension or renewal route, check your PT PMA’s compliance status, prepare the required documents, and coordinate the application with the relevant land office.
Contact ILA Global Consulting now to review your HGB status and plan your next steps before your term ends.
Preguntas frecuentes
On State Land or HPL, HGB lasts 30 years, can be extended by 20 years, and can then be renewed for another 30 years, for a total of up to 80 years. On Hak Milik land, HGB lasts 30 years and cannot be extended by the land office. To continue the right, you need a new grant deed with the landowner.
No. The land office reviews each application. The PT PMA must be in good standing, the land use must match the original purpose and spatial plan, and it must make the required payments.
The HGB holder must continue to meet the requirements for holding an HGB. An inactive or deregistered company can therefore put the HGB’s continuation at risk. Review the company’s compliance status before applying for an extension or renewal.
Processing time varies by land office, application type, and whether the required documentation is complete. The applicable timeline should be confirmed with the land office handling the property.
A PT PMA should start the HGB renewal process well before the existing HGB expires to allow sufficient time to review the land status, prepare the required documents, and address any issues that may affect the application. Starting early also helps confirm the applicable requirements and timeline before the expiry date.
