What is hak guna bangunan (HGB)?
Hak guna bangunan (HGB, right to build) is an Indonesian title to construct and own buildings on land for a fixed, extendable term. Indonesian companies, including foreign-owned PT PMA companies, can hold it.
Last updated · Buying & ownership glossary
About Hak guna bangunan (HGB)
For a surf camp, resort or rental villas run as a business, a PT PMA holding an HGB title is a common structure.
- Also called
- HGB, right to build
- Where it applies
- Indonesia
This is general information, not legal advice. Confirm with a licensed local attorney before you buy.
Related terms
- PT PMA
- A PT PMA is an Indonesian limited-liability company with foreign shareholders. It can hold land under a right-to-build (HGB) title for its business, such as a surf camp or villa rental.
- Hak milik
- Hak milik is freehold ownership of land in Indonesia, the strongest land title there, and it is reserved for Indonesian citizens. Foreigners cannot hold it, and arrangements that put a foreigner's land in an Indonesian nominee's name are not legally protected.
- Hak pakai
- Hak pakai (right to use) is an Indonesian land title that a foreigner holding a residence permit can use for a home. It is granted for a fixed initial term that can be extended and renewed.