Freehold Right to Build, known as "Hak Guna Bangunan" (HGB), is a type of land ownership that allows the holder to build on the land.
This right is valid for up to 80 years, including extension and renewal periods. Both Indonesian individuals and companies (domestic and foreign) can own HGB.
Key Functions of HGB:
Building Rights: HGB allows the owner to construct buildings on the land.
Renewal and Extension: The right can be extended and renewed, up to a maximum of 80 years.
Commercial and Residential Use: Owners can use the land for various purposes, such as residential, commercial, or industrial buildings, following local regulations.
Transferability: HGB can be transferred or sold to other eligible individuals or companies.
Legal Protection: Owners enjoy legal protections under Indonesian law, safeguarding their building rights.
In simple terms, HGB offers a secure way to build on land in Indonesia, with eligibility extended to both Indonesian citizens and companies, including those with foreign investment, for up to 80 years.