Here are the Differences in Basic Agrarian Rights According to Indonesian Law

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By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Discourse on Imposing Tax on Envelope Recipients at Wedding and Celebration Events", "Many Teachers in Blitar, East Java, Are Filing For Divorce", you may read also "A Woman Allegedly Extort Monks in Thailand" and on this occasion we will discuss about 'Here are the Differences in Basic Agrarian Rights According to Indonesian Law'.

In Indonesia, several types of land rights are recognized, including Ownership Rights (Hak Milik), Cultivation Use Rights (HGU), Building Use Rights (HGB) and Use Rights (Hak Pakai). Each has different characteristics, durations, and rights and obligations for the holder. So, what are the differences between these land rights?[1]

Ownership Rights (Hak Milik)

Ownership rights are full rights to land that grant the owner the strongest authority. According to Articles 20-27 of the Basic Agrarian Law, these rights are permanent and can be inherited. The characteristics of land with ownership rights are:[2]

1. Valid for life and can be inherited;
2. Only Indonesian citizens (WNI) may own a property right;
3. It can be transferred or sold to another party (fellow Indonesian citizens);
4. It can be used as collateral for bank loans.

Cultivation Use Rights (HGU)

The definition of HGU is stated in Articles 28-34 of the UUPA (Basic Agrarian Law). The Right to Cultivate is granted to individuals or business entities to cultivate land for agriculture, plantations, fisheries, or livestock for a specified period. The characteristics of HGU are:[3]

1. Valid for a maximum of 25 years (can be extended up to a total of 35 years);
2. Can be granted to Indonesian citizens and Indonesian legal entities;
3. Cannot be permanently owned by individuals;
4. Can be transferred or extended with government permission.

Building Use Rights (HGB)

Regulations regarding the definition and characteristics of HGB (Building Use Rights) are contained in Articles 35-40 of the Basic Agrarian Law. Building Use Rights are the right to construct and use buildings on state-owned land, land with management rights, or land owned by another person for a specified period. The characteristics of HGB include:[4]

1. Valid for 30 years and extendable for another 20 years;
2. Can be owned by Indonesian citizens or Indonesian legal entities;
3. Can be used for commercial buildings, such as apartments, offices, and shopping centers;
4. Can be used as collateral at banks.

Use Rights (Hak Pakai)

The rules regarding Land Use Rights (Hak Pakai) are stipulated in Articles 41-43 of the Basic Agrarian Law (UUPA). A Right of Use is the right to use or utilize state-owned land or land owned by another person for a specified period, without acquiring full ownership. Some characteristics of Right of Use land are:[5]

1. Valid for a maximum of 25 years and can be extended;
2. Can be granted to Indonesian citizens, Indonesian legal entities, foreign nationals, and foreign institutions;
3. Cannot be inherited or sold, but can be extended;
4. Typically used by foreign diplomatic missions or government agencies.

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. "Ketahui Perbedaan Tanah dengan Status HM, HGB, HGU, HPL, HP, dan Hak Tanggungan", www.kompas.com, Retia Kartika Dewi & Inten Esti Pratiwi, 19 Juli 2025, Diakses pada tanggal 29 Juli 2025, Link: https://www.kompas.com/tren/read/2025/07/19/073000665/ketahui-perbedaan-tanah-dengan-status-hm-hgb-hgu-hpl-hp-dan-hak-tanggungan.

2. Ibid.

3. Ibid.

4. Ibid.

5. Ibid.