What's The Difference Between HGB And HGU? Here's The Explanation

Illustration of land certificates (ANTARA)

YOGYAKARTA Before buying a building or a plot of land, you need to know the differences in Building Use Rights (HGB) and Cultivation Rights (HGU). The difference between HGU and HGB can be seen from its designation to ownership status.

The Right to Building Use (HGB) is a right granted to other parties to build and construct buildings on land that does not belong to him.

Meanwhile, what is meant by the Right to Use Business is the right to seek land owned or quased by the state.

In more detail, here are the different HGB and HGU that you need to know, as summarized by VOI from various sources, Wednesday, January 10, 2024.

It has been mentioned above that the difference between HGB and HGU can be seen from its designation to ownership status. The full explanation is as follows.

1. Alignment

HGB is given to legal subjects in order to build settlements in the form of houses and offices.

Meanwhile, HGU is provided so that legal subjects can seek land directly curated by the state within a certain period of time. The business is in the form of agriculture, fisheries, or livestock.

2. Timeframe

According to Article 37 of Government Regulation (PP) Number 18 of 2021 concerning Management Rights, Land Rights, Flats Units, and Land Registration, HGB on state land and management rights has a period of up to 30 years. The land can be extended for a maximum period of 20 years.

In the HGU, the maximum period given is 25 years and for companies that need a longer period of time, they can be given business rights with a maximum period of 35 years. HGU can be extended to 25 years.

3. Ownership Status

Pada HGB, setelah jangka waktu pemberian, perpanjangan, dan pembaruan selesai, tanah HGB akan kembali menjadi tanah yang dikuasi langsung oleh negara atau tanah hak pengelolaan.

For your information, this HBG can be transferred to other people. It should also be noted that the parties who are biding to get HBG are Indonesian citizens (WNI) and legal entities established according to Indonesian law and are in Indonesia.

Based on Article 46 of PP No.18/2021, there are several things that make HGB charred, including:

In the HGU, its ownership status applies to Indonesian citizens and legal entities established according to Indonesian law and pray in Indonesia.

If the HGU owner does not meet the requirements, then GHU voters must give up or transfer their rights to those who meet the requirements in the term of 1 year.

HGU permits can be removed for several reasons, such as:

That's the information about the different HGB and HGU. Hopefully this article can add insight to the loyal readers of VOI.ID.