Legal Aspect of the Granting of Right to Build Over the Land with Right to Manage

Under Article 21 of Government Regulation No. 40 of 1996 on Right to Cultivate, Right to Build and Right to Use Over Land (“GR 40/1996“), land which may be granted by Right to Build (“HGB”) is:

  1. state land;
  2. right to manage land;
  3. right of ownership land.

Then based on the Minister of Agriculture /Head of National Agency Land Regulation No. 9 of 1999 on Procedures for Granting and Cancellation of Right on State Land and Right to Manage Land (“MR 9/1999“), if the requested land is right to manage (“HPL”) land, applicant must first has an designation in the form of land use agreement from HPL holder.

Application Files

HGB application shall be submitted in written form which includes:

  1. Applicant identity information
  • for individual: name, age, nationality, resident and occupation as well as information about the wife/husband and dependent child;
  • for legal entity: name, domicile, deed or rules of establishment in accordance with the provision on applicable laws and regulations.
  1. Information regarding juridical and physical data of land, among others:

obase possession or right possession such as certificate, girik, letter lots, evidence letters of relinquishment of rights on land and house and or land which is obtained from government, court decision, deed drawned by Land Conveyancing Officer (“PPAT”), and other letters which prove possession of land;

  • Layout, boundaries and area (mention the date and number if there is any of measurement letter or survey drawings);
  • the type of land (agriculture, non-agriculture);
  • land use planning;
  • status of the land;
  • information about the number of fields, area, and the status of land owned by the applicant, including land plots requested;
  • other necessary information.

HGB application is accompanied by explanation on non-investment facility or investment facility. If the applicant does not use the investment facility, then simply attach the application files that is mentioned above along with applicant’s statement letter regarding the number of field, area and the status of the land owned by the applicant, including the proposed land plots. If the applicant uses the investment facility, it must attach:

  1. copy of applicant’s identity or company deed of establishment that has been approved and registered as a legal entity;
  2. short and long term land utilization plan;
  3. location permit or land utilization allotment permit in accordance with regional spatial layout plan (“RTRW”);
  4. evidence of land ownership or entitlement in the form of relinquishment of forest area from the authorized institution, deed of relinquishment of former customary land or other letters of land entitlement;
  5. approval of Domestic Investment or Foreign Capital Investment or approval letter from President for certain Foreign Capital Investment or approval letter of principle from Technical Department for Non Domestic Investment or Foreign Capital Investment;
  6. measurement letter if applicable.

Submission of Application

The procedure of application submission is as follows:

  1. Submit the HGB application to the Minister through the head of land office which area of work includes the proposed land. Minister is the minister who is responsible in agrarian/land affairs. Land office is the National Land Agency in Regency/City.
  2. After the file is received, the Head of the Land Office then:
  • examine and review the completeness of the juridical and physical data;
  • recorded on the form field;
  • notify the receipt of the application according to the form field. Notify the applicant to pay the cost to complete the application with the details in accordance with the applicable laws.
  1. Head of the Land Office examine the completeness and correctness of juridical and physical data and examine the feasibility of the application whether it is possible or not to be granted.
  2. In the case of the proposed land has not have the measurement letter, the Head of Land Office ordered the Head of Measurement Section and Land Registry to prepare a measurement document or perform measurement.
  3. Then the Head of Land Office ordered to:
  • Head Section of Land Entitlement or appointed officer to check the right application with the existing registered land, upgrading, extension or renewal of land right and against the land which physical and juridical data has enough to make a decision as outlined in the Land Examination Report; or
  • Land Research Team to check for the right application for land that has not been registered in minutes; or
  • Land Examination Committee to examine the right application for the land other than those examined as referred to in point (a) and (b), as outlined in the land examination report.
  1. In the case that juridical and physical data are incomplete, Head of Land Office will notify the applicant to complete them.
  2. After considering the opinion from Section Head of Land Entitlement or appointed official or Land Research Team or Land Examination Committee, Head of Land Office will issue a decision regarding granting of the HGB over the proposed land or disapproval decision along with the reason for disapproval.
  • If you require further information, please feel free to contact us at query@lekslawyer.com

Exori Claudia

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Legal Aspect of the Granting of Right to Build Over the Land with Right to Manage
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