This Is What Will Happen If Your Land Use Rights Expire

  

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By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Now, Foreign Citizens Can Buy Property in Indonesia With Just a Passport", "What is the difference between Cultivation Rights (HGU), Building Use Rights (HGB) and Property Rights (SHM)?", you may read also "Term and Conditions for Foreign Citizens to Buy an Apartments in Indonesia" and on this occasion we will discuss about 'This Is What Will Happen If Your Land Use Rights Expire'.

Based on Law number 5 of 1960 concerning Basic Agrarian Regulations (UUPA), building use rights are the right to construct and own buildings on land that is not one's own for a maximum period of 30 years. Meanwhile, this time period can be extended to a maximum of 20 years.[1]

If the HGB holder no longer meets the requirements, within a period of one year he is obliged to release or transfer the HGB to a party who meets the requirements. If this is not done, then this right is legally extinguished. There are several things that cause the loss or deletion of HGB. Based on Government Regulation Number 18 of 2021 article 46, here are the reasons:[2]

1. The expiration of the period as stipulated in the decision to grant, extend or renew the rights.
2. The right is canceled by the Minister before the period ends because: (a). Failure to fulfill the provisions of obligations and/or prohibitions for rights holders. (b). Failure to fulfill the conditions or obligations contained in the HGB grant agreement between the HGB holder and the owner of the ownership rights or the land utilization agreement with Management Rights. (c). Administrative defects, or (d). The court decision has obtained permanent legal force.
3. Changed the right to another land right.
4. Released voluntarily by the rights holder before the term expires.
5. Released for public interest.
6. Revoked by law.
7. Designated as Abandoned Land.
8. Designated as Desolate Land.
9. Expiration of the agreement granting rights or land use agreement for HGB over ownership rights or management rights.
10. The rights holder no longer meets the requirements as a rights subject.

As additional information, this HGB can be transferred and transferred to other people. Please note, those who can own HGB are Indonesian citizens (WNI) and legal entities established according to Indonesian law and located in Indonesia.[3] And if you have any legal issue in Indonesia territory, contact us for business inquiry, feel free in 24 hour, we will be glad to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

References:

1. "Apa yang Akan Terjadi Kalau HGB Tanah yang Kamu Tempati Habis? Ini Jawabannya", www.detik.com., Almadinah Putri Brilian, Senin, 27 Mei 2024, Diakses pada tanggal 24 Juni 2024, Link: https://www.detik.com/properti/tips-dan-panduan/d-7359134/apa-yang-akan-terjadi-kalau-hgb-tanah-yang-kamu-tempati-habis-ini-jawabannya

2. Ibid.

3. Ibid.